A short time ago the USA released it's 'Non-Farm Payrolls' figures, and this has caused some large swings in both GBP/EUR and GBP/USD. The report shows the number of new jobs created, excluding the agricultural sector as that's seasonal. It's notoriously difficult to predict, and the actual figure came in today as 38,000 new jobs. The markets had been expecting, and priced in, a number of 164,000. So as you can see the actual figure was significantly lower than expected. Very very low, probably the lowest I've seen since the credit crunch.
This has global implications, and the effect on the currency markets is clear to see. If you look at the first chart below you can see that GBP/USD shot up by 1 cent, due to the US Dollar weakening and becoming cheaper to buy. The charts also show the inverse relationship between the Euro and the Dollar. The second chart shows GBP/EUR and this moved the opposite way and gone down. This is because investors that have sold the Dollar causing it to weaken, bought the Euro, causing it strengthen and become more expensive to buy:
This is a great example that when looking at exchange rates, for example Pound/Euro, it's not always events in the UK or the EU that can drive the market, so having a good broker with a sound knowledge of the currency markets can help you to decide when to fix a rate of exchange.
This site provides a daily report on exchange rates, focusing on Pound/Euro in particular, and is a great resource for those looking for the best exchange rates. However providing commentary on the markets is only a small part of what we do. We can help you exchange your funds at incredibly competitive rates of exchange, that are usually up to 5% better than your bank or existing broker may offer.
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Labels: Best Exchange Rates, Currency, GBPEUR, GBPUSD, Non-Farm Payrolls, Why has Pound/Dollar gone up, Why has Pound/Euro gone down