Showing posts from April, 2013

Sterling gains after strong GDP. What's the currency forecast going forwards?

Friday 26th April 2013  Good afternoon. As I’m sure you have all seen in the news already, the UK has avoided recession and the GDP numbers were a little higher than forecast. This has pushed the Pound higher against other currencies, which will be welcome for those looking to buy currency with Sterling. 
In today’s post I will take a look at the numbers and their effect on exchange rates. I will also look at what may cause rates to fall back away in the coming weeks, and also make the case for further gains. 
In today’s report: 
UK avoids recession and Pound strengthens Possible ECB Interest Rate cut could weaken Euro US GDP disappoints, weakening the US Dollar Bank of England could resume weakening SterlingCase for rates continuing to rise Case for rates dropping back away How to get the best exchange rates 
UK avoids recession, pushing the Pound higher against other currencies. 
The UK economy has avoided falling back into a recession after figures released yesterday surpassed expectatio…

How could UK GDP numbers affect exchange rates?

Wednesday 24th April 2013 Good afternoon everyone. I'm only putting up a short post today ahead of tomorrow's key UK GDP figures. I thought I would outline what I think may happen depending on the actual numbers that are released tomorrow at 09:30am.
Let's start at the beginning. What is GDP?
Firstly, what is GDP? You can read a comprehensive outline here on the BBC website. In a nutshell, it's a measure of the economy in one simple number. If the GDP measure is up on the previous three months, the economy is growing. If it is negative it is contracting. And two consecutive three-month periods of contraction mean an economy is in recession.

How could the GDP result affect exchange rates?

Now, I'm sure regular readers are now getting a little bored of me talking about the GDP numbers, so you will be pleased to know the final result will be announced tomorrow morning at 09:30am! Markets have been waiting in anticipation for the result, and so we can finally put to bed t…

Pound/Euro forecast April/May 2013 ahead of UK GDP figures

Monday 22nd April 2013  Good afternoon. Since my post last week, there has continued to be volatility in the currency markets. Mid-week last week we saw poor UK Retail Sales and unemployment data weaken the Pound, causing exchange rates to fall. The GBP/EUR rate recovered towards the end of the weak due to rumours of an EU interest rate cut. On Friday, there was the news the UK’s credit rating has been downgraded by a second agency, mirroring concerns about the economy from the IMF. 
So, in today’s report I’m going to have a look at what the downgrades mean for the Pound, and what this week may have in store for Sterling exchange rates. 
Fitch downgrades UK credit rating to AA+ 
The Fitch credit ratings agency has downgraded the UK to AA+ owing to a weakened economic outlook. Fitch said its downgrade "primarily reflects a weaker economic and fiscal outlook" but returned its outlook to "stable", removing the threat of further rate action in the near term. 
It’s the secon…

Pound/Euro outlook forecast April 2013

Tuesday 16th April 2013  Good morning. Rates remain fairly stable, with GBP/EUR rates only moving around 1 cent over the course of the last week. This are not likely to remain this way for long however, with some important data due to be released over the next few weeks. 
In today’s report, I’ll have a look at the latest economic data releases, and the forecast for where Sterling exchange rates may move in the coming weeks. 
Sterling remains stable against other currencies 
The latest inflation numbers this morning came in as expected at 2.8%. The Bank of England has said it expects inflation to exceed 3% later this year. As the numbers were as forecast, there wasn’t much effect on exchange rates. In the longer term, the Bank had said it expects inflation to remain above its 2% target until early 2016. 
The inflation outlook has prompted caution among policymakers about the increasing use of stimulus to kick-start the UK economy. The Bank's Monetary Policy Committee (MPC) split 6-3 las…

UK may avoid recession; exchange rate forecast April 2013

Thursday 11th April 2013 
Good afternoon everybody. Things have remained relatively calm in the currency markets so far this week, and we have not seen the sharp volatility experienced in recent weeks. The latest UK GDP estimate suggests we may avoid recession which is keeping the Pound supported against other currencies. The Euro remains weak on concerns over countries other than Cyprus facing problems, and the US Dollar has also weakened following their recent budget statement. 

In today’s report I’ll take a look at the above, and also run over what other data is out in the coming days that may affect rates. And don’t forget, I can source exchange rates significantly better than the banks can offer, so if you need to buy or sell currency at the best exchange rates, send me an enquiry now to find out how I can help. 

UK may avoid recession 

This week numbers showed that Britain's economy may have grown by 0.1% in the first quarter of 2013 compared with the previous quarter. The numbe…

Pound steady against Euro, but GDP estimate next week could shake things up

Friday 5th April 2013  Firstly apologies for not posting any updates for the last week. I have been battling a particularly virulent strain of man flu and so have been out of action. The market has been fairly stable in my absence, and the Pound has had a relatively stable week against the Euro, only moving by between 1% and 2%. So after the roller coaster fluctuations we have seen in recent weeks, the last 7 days have been fairly calm. 
In today’s post I will take a look at what has happened in the last week, what effect the on-going crisis in Europe will have, in addition to looking at some important releases coming next week that could move exchange rates one way or the other. 
In todays’ post:  Pound stable against Euro Effect of crisis in Europe on exchange rates How GDP estimate next week could affect levels The different options you can look at if you need to exchange How to get the best Exchange Rates 
Pound Steady against Euro 

The week has been relatively stable for the Pound/Eur…