International Payments News

Exchange Rate news this week 121112

Mon, 12 Nov 2012 00:00:00 GMT

There is a lot going on in the world to affect currency rates at the moment. Last week of course, President Obama was re-elected, and while historically US elections have not greatly affected the US Dollar, this time could be different - as Obama will have to steer the US economy through the 'fiscal cliff' in January when tax cuts and reduced government borrowing come into effect. The problem being that the Republicans, who control the House of Representatives, will need to be complicit in any new deals. As the debate rages we may see some opportunities to buy US Dollars at weaker levels before the new year.

In the Eurozone, Greece's parliament has now voted through the austerity budget required to pacify the European loan-makers and qualify Greece for its emergency loan funding. The effect on the price of the Euro remains to be seen, but we would expect Euro strength (worse rates for buying Euros) once the loan payment is made and the debt crisis disappears from the headlines for the time being.

This all comes on top of a busy week in the UK. The Pound peaked against many currencies on Thursday last week when the Bank of England announced that there would be no increase to the Quantitative Easing programme, but fell back on Friday, despite the UK trade balance contracting more than expected. This week, we have important figures due out in the guise of unemployment, inflation and the Bank of England's quarterly inflation report. Will we see positive figures, and better exchange rates, or the opposite?

In a busy week, there are also inflation figures due from the Eurozone and USA, plus Euro-GDP and the Federal Reserve minutes. So the fireworks could continue on the currency markets this week - make sure you are updated with the latest rates and don't miss out if rates move in your favour.

Currency News Report 221012

Thu, 25 Oct 2012 00:00:00 GMT

It seems the Pound is struggling currently - despite good economic news last week in terms of unemployment and public borrowing, there were losses for sterling against most currencies, including the Euro and US Dollar.

The European Central Bank announced plans to regulate all banks in the Eurozone from as early as next year, in a move seen as widely positive for the ailing single currency, and a closer step towards fiscal union. This strengthened the Euro, giving lower rates for sending Euros, particularly against the Pound which is likely to suffer from European policy-making in the future. The crucial financial services sector in London could be marginalised by Eurozone policy, given that the single currency bloc will surely be acting mainly in self interest in the future.

The British government therefore faces a tricky path in negotiating a fair deal for Britain, while resisting pressure from eurosceptic MPs to leave the EU altogether. Whether we will be promised a referendum after the next election, or whether the government will lurch through further crises meanwhile, remains to be seen - but the short term future for the Pound does not appear to be rosy.

This week we have the first reading of GDP due out on Thursday morning, and the UK economy is expected to have returned to growth in the third quarter. If it hasn't, then we would expect to see significant losses for sterling. In addition the prospect of an extension to Quantitative Easing in November, hinted at in the Bank of England minutes last week, would also be bad news for the Pound.

Elsewhere this week we have interest rate decisions in Canada, the USA and New Zealand, which can affect the CAD, USD and NZD respectively. And in Spain, the prospect of a full bailout request remains, with unpredictable consequences on the markets.

Currency News Report 151012

Mon, 15 Oct 2012 00:00:00 GMT

After a quiet week for exchange rates last week, we have a busy week ahead with some movements likely for exchange rates one way or another.

For the Pound, most of the UK's monthly economic data is released this week. As always the markets will look for clues as to the direction of the economy, with any good news likely to bring a stronger Pound and vice versa, so if you have a transfer to make from or to the UK it will be worth keeping a close eye on developments. Starting tomorrow we have important figures due out each morning at 9.30am, with inflation, unemployment, the Bank of England minutes, retail sales and public sector borrowing all being announced. Given the recent downbeat prospects for UK plc, these releases could have a negative impact on sterling and exchange rates generally.

Talking of inflation, New Zealand, the USA and the Eurozone all report this week too. Inflation affects exchange rates as a higher figure means that a currency is effectively devaluing, giving cheaper exchange rates.

The Eurozone as usual will be discussing the debt crisis and Greek (and Spanish?) bailouts, with an EU economic summit plus European Council meeting on Thursday and Friday. With Greece due to run out of money by the end of November, the bailout terms must be agreed soon, and Spain may request a bailout too now that their debt has been downgraded. Euro rates remain unpredictable but we expect any progress between Germany, the IMF, the ECB and Greece to bring Euro strength and lower rates for sending Euro payments.

The South African Rand rate last week hit a new post-2008 high, with 2 months of labour market disputes taking their toll on the notoriously volatile currency. Payments to South Africa are now a staggering 18% cheaper than as recently as March, for those of you with a ZAR requirement make sure you do not miss these rates.

For the US Dollar and pegged currencies (such as UAE Dirham) meanwhile, rates are fairly steady, with the US election looming and inflation the only major data out this week, there may not be much movement in the dollar's value.

Currency Report 081012

Mon, 08 Oct 2012 00:00:00 GMT

Last week saw sterling lose value against many currencies, notably the US Dollar and Euro. In the States, the main monthly labour market figures were released on Friday and showed US unemployment falling to its lowest level for 4 years, causing an increase in price for the dollar. Rates for sending USD (or pegged currencies such as the UAE Dirham) fell back but are still close to their best this year; the positive effect on rates from monetary easing in the USA may be wearing off so if you have dollars or dirhams to send, do consider fixing a rate sooner rather than later in case the trend continues.

For the Euro, it may sound like a broken record but the debt crisis rumbles on, with meetings between Chancellor Merkel and Greek PM Samaras, as well as Eurozone finance ministers meeting in Luxembourg, tomorrow. As always the Euro is sensitive to news in this area as it comes out, with last week's drop in exchange rates being partially due to ECB President Draghi's bullish speech on Thursday. Draghi testifies again tomorrow morning at 8.30am, and his talk of ECB bond-buying does seem to increase the value of the Euro.

In the UK this week there is not a huge amount of data due out, although tomorrow we have the latest trade balance figures and an independent GDP estimate which are both likely to cause some movement for sterling exchange rates.

One currency which is particularly good value at the moment is the South African Rand, as the South African mining crisis worsens making for worrying headlines in the region, the Rand has weakened significantly and we currently have the best rates since 2009 for sending money to South Africa. As with all currencies, rates can be secured up to 2 years ahead of your requirement with a reputable currency company if you would like to consider locking in to a rate now.

The Australian Dollar is also available at the best rates since June, after last week's unexpected interest rate cut in Australia. Interest rate decisions last week in the UK and Eurozone were unchanged as expected, and the Bank of England minutes out next week will give us the next clues as to whether there will be further Quantitative Easing in the UK.

Currency Report 011012

Mon, 01 Oct 2012 00:00:00 GMT

As we enter the last quarter of 2012, the Eurozone crisis rumbles on and continues to dominate exchange rates around the world.

The constant jostling for political and economic position between Greece, Spain, Germany, and the European bodies of the European Central Bank and the European Financial Stability Facility is due to culminate shortly in a Greek bailout - assuming targets are met and other influential parties such as France's President Francois Hollande all reach accord on terms. Meanwhile Spanish PM Rajoy is still stalling on whether his country may also need a bailout, all of which leads to uncertainty and volatile exchange rates not only in the Eurozone but worldwide.

For the Pound, last week saw GDP figures revised slightly upwards, which gave us some sterling strength midweek, but the Pound fell away towards the end of the week and is still vulnerable to negative data. We have house prices, mortgage approvals and the services and construction industry figures due out this week, and the first Q3 GDP figure comes out on October 25th - will the recession be over, or worsen? Leading up to the 25th, any data which points to a prolonged contraction will surely send sterling lower.

Eurozone unemployment figures this morning were as expected, and retail sales are due out for the single currency zone on Wednesday.

On Thursday we also have interest rate decisions in the UK and Eurozone, and although rates are unlikely to change, the accompanying statement from the ECB is usually influential on Euro rates, while the UK announcement is accompanied by the Quantitative Easing decision - more QE usually leads to a rapidly falling Pound.

In the USA, Thursday evening is the minutes of the latest Federal Reserve meeting where more money was pumped into the US economy, causing the US Dollar to weaken and providing better rates for sending funds in US Dollars or pegged currencies such as UAE Dirhams.

We also have important figures out for the Australian Dollar this week, with the Aussie interest rate decision tomorrow and trade balance on Wednesday.

Currency Report 240912

Mon, 24 Sep 2012 00:00:00 GMT

With autumn arriving in the UK and bringing a month's worth of rain in 24 hours, those of you buying property abroad can take heart from better climates overseas, and more surprisingly some good exchange rates as sterling has taken advantage of events around the globe.

The Pound recovered losses against the Euro towards the end of last week, and while Euro exchange rates are not quite as good as a few weeks ago, given the underlying weakness of the UK economy we see the single currency as good value. This week, we have Chancellor Merkel meeting with ECB President Draghi to (again) discuss the terms of the Greek bailout and use of the European Stability Mechanism (ESM). With French PM Aryault yesterday lobbying for Greece to be given more time, plus German finance minister Kampeter supporting the use of the ESM, it would appear that Greece is finding some sympathy in Europe and is set to remain in the Euro with a bailout to go ahead. We would expect this to strengthen the Euro in the short to medium term, giving lower rates for sending money to the single currency zone.

German business sentiment this morning however dropped to its lowest level since early 2010, with fears of a recession in Germany growing as demand from troubled Eurozone partners has been dropping. The ESF and Greek bailout, plus ECB bond-buying plans, are not going to produce economic miracles overnight.

The US Dollar remains very cheap too, with the recent addition Quantitative Easing weakening the US currency a few cents against the Pound. This demonstrates how monetary easing can devalue a currency, and given that the Bank of England may follow suit with more QE in the coming months, beware of potentially falling exchange rates.

This week also sees GDP figures released in the UK, USA, Canada and France. GDP is such a significant economic indicator that we usually see exchange rates move if GDP is revised significantly, and this week is no exception.

We are also still seeing extremely good rates for the Pound against the South African Rand, which has weakened significantly with recent mining strikes.

Currency Report 160912

Sun, 16 Sep 2012 00:00:00 GMT

September so far has seen a turnaround for the fortunes of the Pound compared to recent trends. While August gave us the highest rates for GBP-EUR and lowest rates for GBP-USD for some time, recent events have switched the trend around.

The Federal Reserve last week announced an extra $40bn of Quantitative Easing, giving us US Dollar weakness, while in Europe the German approval of the Greek bailout last week has had the opposite effect and increased the value of the Euro. Currently the Pound buys more US Dollars than at any point since April, while the cost of a Euro has increased around 4% since the recent peak in rates in July.

Don't forget that many currencies are pegged to the US Dollar, so if you are buying UAE Dirhams, Omani Rials, or any of the Caribbean currencies, rates will also currently be very favourable.

While the Pound has therefore seen something of a see-saw effect against the Euro and US Dollar, this week sees key monthly data out which should give sterling its own momentum in one direction or the other. Inflation, Bank of England minutes, retail sales and public sector borrowing are all due out and if there are any surprises, whether positive or negative, we could see some movement for GBP across the board. If you would like to be updated on any movement in your favour, a reputable currency broker should be on hand to monitor rates on your behalf.

Elsewhere we are currently seeing excellent levels against the ZAR and JPY, for those of you looking to send money to South Africa or Japan respectively.

The Swiss Franc may also be in for some volatility on Thursday when their trade balance is released, and for buying or selling New Zealand Dollars, keep an eye on the current account figures tomorrow evening and GDP on Wednesday.

Currency report 280812

Tue, 28 Aug 2012 00:00:00 GMT

After the UK bank holiday, we head into the last week of August with a bleak scenario for the UK economy and perhaps therefore the Pound.

This morning's survey showing the important service sector shrank between June and August added to Friday's confirmation of the continuing recession. Although Friday's revised GDP showed a slight improvement, the 0.5% contraction is still way below the government's hopes for a quick solution and a return to growth seems a long way off.

Thankfully for those of you sending payments in Euros or US Dollars, both these currencies have so far remained weak too. Following meetings with Greek PM Samaras last week, Angela Merkel tried on Sunday to calm a growing Eurozone argument, after the Bundesbank again commented against ECB plans to buy bonds, and a leading German politician said Greece should leave the single currency next year. With the September decisions about Greece's bailout looming, there still appears to be no common policy emerging from Germany, let alone the rest of Europe, as to what will happen next.

The US Dollar also weakened last week on expectations that the Federeal Reserve may pump more money into the economy soon, giving us the best rates for buying Dollars for 3 months, and the South African Rand hits its cheapest against sterling since 2008.

How long these rates can last is of course unknown, but continued economic gloom in the UK will surely start to manifest itself in a weaker Pound at some point soon.

Sterling gains on data releases

Mon, 20 Aug 2012 00:00:00 GMT

The Pound took strength last week from some unusually good economic data. Unemployment fell by 46,000 to its lowest level for a year, retail sales were better than expected, and inflation increased unexpectedly to 2.6% in June. (Note that higher inflation may not be good news generally, but is usually sterling-positive.)

So we saw an improvement in rates for buying most currencies last week, with the Pound achieving near the top of recent trading ranges against the Euro, US Dollar, South African Rand, NZ & Australian Dollars, and Thai Baht to name a few.

After such a busy week of important data releases, this week there is not much scheduled of importance. We have the revised UK GDP figure as well as public sector borrowing, but neither are likely to have a huge effect on rates. More likely to be making the headlines will be the Greek Prime Minister's visit to Berlin later in the week for talks with Angela Merkel and senior Eurozone finance officials. Greece is likely to ask for longer to implement austerity measures, while Germany is reluctant to change any terms, so these talks are crucial for the world economy since the Greek bailout deal must be sanctoned next month. Rumours of a Greek Euro-exit still persist, keeping the single currency weak during a time of uncertainty - and therefore giving us much better exchange rates for buying Euros than we saw for most of last year.

With the Pound currently enjoying favourable rates against many currencies, do remember that things can change very quickly. If you need to make payments in any other currencies do consider requesting a quote sooner rather than later - and if you are selling a currency to move back to sterling, keep an eye on rates and be alert to any movement back down to more usual trading levels.

Pound resilient - currency news this week

Mon, 13 Aug 2012 00:00:00 GMT

Despite last week's treacherous UK data, including downgraded growth forecasts and a record trade balance, the Pound held up against most major currencies last week. Whether Olympic fever has filtered through to the markets, or simply that the UK is seen as the best of a bad bunch for international investors, exchange rates were remarkably resilient in the face of depressing economic figures which would usually send sterling ruthlessly tumbling.

This week we have more potential problems for the UK and the Pound. Tomorrow sees the main monthly inflation figure, on Wednesday we have unemployment and the Bank of England minutes, and on Thursday July's retail sales figures. Falling inflation, while good for economic targets, is sterling-negative, as it gives the Bank of England more scope to cut interest rates or increase QE. The Pound's saving grace last week was that Governer Mervyn King ruled out a short term interest rate cut, but the Bank's minutes could adjust that view.

In Europe, many parliaments are on summer recess, but we have important figures due out in the guise of GDP (Tue) and inflation (Thu). Behind the scenes, a senior aide to Angela Merkel stated this morning that Germany would not hesitate to veto further aid to Greece if there were signs of the bailout conditions not being met - as we build up to September's decisions on the €130bn payment needed to effectively keep Greece in the Euro.

For the US Dollar, retail sales tomorrow and inflation on Wednesday are likely to have a bearing on USD rates and pegged currencies such as the UAE Dirham. Completing the major inflation releases will be the Canadian figure on Friday afternoon.

Elswhere last week we saw improvements for rates for buying Swiss Francs, Egyptian Pounds and Thai Baht towards the end of the week.

Bank of England cuts growth forecast

Wed, 08 Aug 2012 00:00:00 GMT

The Bank of England has today cuts its forecast for UK growth to 'near zero' for 2012.

In a damning indictement for the UK economy, Governer Mervyn King says there will be no growth for 2012, compared with the 2 per cent rate predicted a year ago.

The ongoing Euro debt crisis has been blamed for much of the gloomy outlook. Perhaps surprisingly, the Pound has in fact benefitted from the news, giving us better exchange rates for international payments, becuase analysts had feared that the Bank's prediction could turn to negative growth for the year. With much trouble still ahead, buyers may want to consider taking advantage of what may be a temporary spike in exchange rates.

If interest rates are cut or QE is extended at the next Bank of England meeting, we could easily see sterling fall back.

Currency Report 6th August 2012

Mon, 06 Aug 2012 00:00:00 GMT

Sterling fell back last week as we saw more disappointing figures for the UK economy - in the dominant UK services sector growth was lower than expected while manufacturing growth was the worst for 3 years. On Thursday the Bank of England kept interest rates and QE on hold, but surely it is a matter of time before one or both are changed in a direction which would not help sterling.

For the Euro, ECB President Draghi's speech on Thursday was highly anticipated after his comments that the central bank would do whatever is necessary to stop Spanish and Italian debt prices rising further. In the end there didn't seem to be any new policy, but the Euro strengthened on Thursday and Friday giving us lower exchange rates for buying the single currency. The battle between bond markets and European policy, which has continued all year, could come to a head in September and if the ECB do start directly buying bonds, we could see recent patterns of cheaper Euros being reversed.

The US Dollar (and pegged currencies such as UAE Dirham) gained some value early last week, but fell back on Friday (improving rates for buying USD) despite the main monthly labour market figures showing more jobs than expected being created in the US economy. The Pound fell against the South African Rand, New Zealand and Australian Dollars, and Thai Baht during the course of the week.

This week the European Central Bank's monthly report on Thursday will be of interest, and we have unemployment figures from New Zealand, Australia and Canada. With markets particularly volatile at the moment, if you have a requirement coming up and would like to look at options for fixing your exchange rate in advance, do consider using a Forward Contract to achieve this.

Currency report this week

Mon, 30 Jul 2012 00:00:00 GMT

Last week's headlines concerned the shock 0.7% contraction in the UK economy from April to June, announced on Wednesday. The Pound took a tumble as the UK recession extended into a third quarter with a much worse figure than expected, becoming the worst contraction since 1955.

With talk of interest rate cuts and even more quantitative easing, the next few weeks could be tricky for the Pound.

Nonetheless, the well reported problems in the Eurozone continue, with no long term solution or major policy change now likely until September. Inspectors in Greece are close to agreeing the final terms of their bailout, but with Spain increasingly making the news for the wrong reasons, we could be about to enter a crucial phase of the Euro's history. We would expect the Euro to remain weak, unless Spain avoids the need for a bailout, which could strengthen the single currency and bring exchange rates back down from their current excellent levels.

For the US Dollar and UAE Dirham, late last week saw a rally in exchange rates, with an improvement of 2c in rates for the Pound on Thursday. Investors moving away from the US Dollar and back into 'riskier' currencies caused the Greenback to weaken.

This week as we head into the end of July, we have some important data due out which is likely to move exchnage rates. In the US on Friday we have the main labour market statistics, and trade balance figures for South Africa and Australia on Tuesday and Thursday respectively are likely to affect the cost of the Rand and Dollar. The Canadian Dollar, which has been fairly stable recently, sees GDP figures released tomorrow.

Finally in Europe, last week's higher hopes of Eurozone/ECB action to keep debt costs down has filtered through to a lower cost for the Italian government on the bond markets this morning. Rates were 5.96%, lower than the previous auction which cost 6.19% on average. Is this a temporary blip, or does Mario Draghi have something planned to at least delay the current debt problems until the Eurozone leaders return from their August holidays?

Weekly currency report

Mon, 23 Jul 2012 00:00:00 GMT

Despite a mixed bag of data last week, the Pound managed to improve its value yet further against the Euro, and even managed to post some gains against the US Dollar. Inflation and retail sales figures were both sterling-negative, as were the Bank of England minutes, but the markets seem to be more focussed on macroeconomic problems these days. A slight fall in unemployment was the only vaguely good news for UK plc.

There were also gains for the Pound against the South African Rand.

As rumours of a Spanish default gain pace, many buyers are now taking advantage of excellent Euro rates. The US Dollar (and pegged currencies, eg AED) have seen strength in recent weeks but any signs of weak US data this week will likely increase expectations of more monetary easing in the US, which would probably lead to a weaker dollar and better rates for sending USD payments.

There is not a huge amount of data out this week, although the revision to UK GDP, on Wednesday, could affect the pound. Any downward revision would mean the recession is deeper than previously thought and could bring exchange rates down. Conversely, sterling would gain some strength if there are any signs of recovery - although the IMF have just downgraded their forecast for UK growth this year to just 0.2%, so we won't be holding our breath for positive news.

Elsehwere, the New Zealand and Australian Dollar rates both fell last week, as both currencies gained in price. We have the New Zealand interest rate decision and Australian inflation on Wednesday, so if you are looking to send a transfer in either currency, check for any helpful movements on Wednesday morning.

UK inflation falls - Pound follows

Tue, 17 Jul 2012 00:00:00 GMT

UK consumer inflation has fallen to its lowest level since 2009, according to figures out today. The Consumer Price Index fell to 2.4% in June, from 2.8% the previous month.

Inflation affects exchange rates, with lower CPI usually leading to a weaker Pound. This morning sterling fell against most other currencies on the release of the figures.

Against the Euro, rates for Euro money transfers* have recovered, but against the US Dollar we have lost half a cent in trading today. However, weak US data yesterday did give the USD rate a boost.

Tomorrow sees the release of UK unemployment figures and the Bank of England minutes, both of which are likely to have an effect on exchange rates.

* To make Eurozone money transfers you will need your beneficiary's IBAN and BIC code - for more information see our page entitled What is an IBAN? For a quote from an FSA regulated broker, simply complete your details at the top of the page and we will put you in touch.

This week's currency report

Mon, 16 Jul 2012 00:00:00 GMT

The current themes in exchange rates continued last week, as we saw the Euro weaken further (posting its cheapest level against sterling again for over 44 months) but struggles for the Pound elsewhere.

Those of you buying Euros will be wondering where the peak might be, and while it's impossible to tell, rates were static towards the end of the week having improved significantly for the previous few days.

This week, we also have important economic releases in the UK, likely to affect the Pound against all other currencies. On Tuesday we have the key CPI measure of inflation, Wednesday sees the Bank of England minutes and unemployment figures, then on Thursday we have retail sales followed by public sector borrowing on Friday. All the releases are scheduled for 9.30am. The Bank of England Governor, Mervyn King, also gives a speech on Tuesday.

So with so much data due out in the UK, there is likely to be some volatility for the Pound. As always, negative data will be likely to bring exchange rates down. With the USA fast becoming a 'safe haven' for investors, the US Dollar rate (and pegged rates such as the UAE Dirham) could be susceptible to further deterioration, and if the Euro debt crisis stays out of the headlines then we see the Euro rate potentially falling too. Of course, we could have surprise good news for the UK economy, but there has been virtually none in recent months.

Elsewhere exchange rates were fairly stable last week, with little movement for the Pound against the New Zealand, Australian or Canadian Dollars, South African Rand and Thai Baht.

Currency news this week 090712

Mon, 09 Jul 2012 00:00:00 GMT

Last week saw the extension of the Bank of England's Quantitative Easing programme, as another £50bn was injected into the ailing UK economy to encourage lending and stimulate growth.

Unfortunately for the Pound, QE effectively dilutes sterling and tends to result in lower exchange rates for international payments. The exception was against the Euro, which weakened again after the European Central Bank cut interest rates to historic lows of 0.75% - giving us the best rates for buying Euros since October 2008.

While we don't expect the Euro to strengthen significantly given the unresolved debt crisis, if you have Euros to buy then now might be a good time to look at securing your rates.

The effects of QE were however felt elsewhere. US Dollar and UAE Dirham rates fell sharply towards the end of last week, and this morning are sitting at their lowest for a month. With the UK economy continuing to struggle, this trend may continue, and sterling has also lost ground recently against the New Zealand, Australian and Canadian dollars, and South African Rand.

This week there is not a huge amount of data due out, although there are some speeches from central bankers around the world. In the UK, the fallout from Barclays' manipulation of interest rates is attracting headlines but has not yet affected exchange rates, although if other British banks become implicated as events unfold there could be bad news for the Pound, specially if the government sees fit to legislate against the City. Bank of England deputy governor Paul Tucker is appearing before MPs on the subject at 3.30pm today.

In Europe this morning, news that Spanish bond prices again breached the key 7% level, are another warning sign to European policymakers whose attempts to plug gaps in Eurozone debt financing are looking increasingly desperate. Euro exchange rates remain very sensitive to any further developments.

Euro rate back above 1.25

Fri, 06 Jul 2012 00:00:00 GMT

After yesterday's European Central Bank interest rate cut, the Euro has weakened over the last 24 hours, giving us the best rates for Euro money transfers for over 3 years.

Despite the Bank of England's additional round of QE yesterday, which was seen as likely to hurt sterling, exchange rates against the Euro have held up.

Elsewhere however, the Pound has been suffering, losing ground agains the US Dollar and many other major currencies.

Australian Dollar higher on Bank minutes

Tue, 03 Jul 2012 00:00:00 GMT

Australian Dollar rates have dropped overnight, after the Australian Reserve Bank held interest rates at 3.5%, and the accompanying minutes indicated that interest rates are unlikely to be cut in August.

Analysts had pondered whether the central bank might be minded to reduce the headline rate by 0.25% in July or August, but the decision to cut rates in June turned out to be finely balanced, meaning that interest rates are now seen as more likely to stay at 3.5%.

Lower interest rates tend to give a weaker currency, so the change in perception has strengthened the Aussie Dollar, giving lower rates for money transfers to Australia.

Currency News Update

Mon, 02 Jul 2012 00:00:00 GMT

Regular readers will be unsurprised that the Eurozone once again dominated currency headlines last week. The EU summit produced a surprise deal in the early hours of Friday morning, meaning emergency European funds can now be injected directly into ailing banks and bond markets, rather than passing through central governments. This was seen as a victory for Spain and Italy over Germany, and a step towards common banking policy in the Eurozone, a move which Chancellor Merkel had been reluctant to accept.

The result by Friday morning was that the Euro posted its biggest single day increase in price for 8 months, with the see-saw effect giving a weaker US Dollar and better exchange rates for money transfers to the USA.

Since Friday, the knee-jerk reaction has been replaced by a little more calm in the markets, although Euro rates are still below Thursday's peak, and are falling slightly today.

The 'commodity currencies' also benefited last week, with exchange rates for the Australian Dollar, New Zealand Dollar and South African Rand all falling (2%, 1.7% and 3.5% respectively).

Looking forward to this week, the main news for the Pound is likely to be Thursday's monthly Bank of England meeting. Last month, the Bank voted narrowly not to extend Quantitative Easing, and speculation is rife that it will be extended this week, specially given lower inflation figures in June which will allow the Bank some more room to manoeuvre. QE has, in all previous rounds, hurt sterling and reduced exchange rates significantly, so to avoid the risk of falling rates, do consider fixing your exchange rate before Thursday's announcement. The move may be priced in somewhat to the market already, but we will not know until after the event what the effect on rates will have been.

UK GDP was also revised further down last week, confirming the double-dip recession, and with growth possibly still negative for the second quarter of the year, prospects for significant improvement in exchange rates seem some way off.

Another story is the Conservatives' decision to start a debate about a possible EU referendum in the UK - although a long way off, if this garners public support, what will the effect be on the Pound?

Currency Market update

Mon, 25 Jun 2012 00:00:00 GMT

Uncertainty still reigns the currency markets, despite the new pro-bailout Greek government and Spanish government support for the banking sector. Moody's, the credit rating agency, last week downgraded 16 banks' debt scores, demonstrating the continued worries about Eurozone debt in particular, which have been keeping the Euro nice and cheap for those of you sending payments in the single currency.

At home, the main news last week was that the Bank of England only narrowly decided not to extend Quantitative Easing earlier this month, by 5 votes to 4. It seems likely, given recent economic data (unemployment held at 8.2% last week) that there may be a further injection of cash into the economy at the next meeting, on July 5th. Usually, QE hurts the Pound, giving lower exchange rates for sending international payments.

The third reading of UK economic output (GDP) in the first quarter is also due out on Thursday this week, and will almost certainly confirm the double-dip recession. Many analysts are not expecting a return to growth in the UK in the second quarter, due to the escalating Euro crisis and slow global growth. Needless to say, the Pound does not usually react well to negative UK growth.

Across in the USA, dollar rates have been fluctuating greatly, as the USD became a 'safe haven' currency and strengthened, only to weaken again as the prospect of more economic stimulus from the Federal Reserve increased last week. We have important US data out on Tuesday, Wednesday and Thursday, so if you have a US Dollar (or pegged currency, such as the UAE Dirham) transfer to make, let us know if you would like to be alerted to any movement in your favour.

Finally for this week on Thursday and Friday the EU summit will look to finalise the austerity terms attached to the Greek bailout, although with the new Greek PM and finance minister unlikely to attend due to illness, it is unclear what will be achieved.

In other currencies, the South African Rand has weakened, giving us South African Rand rates near the best since November for buying ZAR, and the Thai Baht is also at excellent trading levels, while the Indian Rupee rate has posted another record, giving the best INR exchange rate for over 10 years.

Unemployment steady, but more QE on the cards

Wed, 20 Jun 2012 00:00:00 GMT

This morning's UK data provided a mixed bag for the Pound - the bad news is that the Bank of England only narrowly decided not to introduce more Quantitative Easing this month, voting 5-4 to keep asset purchases on hold. With inflation falling unexpectedly, there is now an increased likelihood that QE will be extended in July, which is likely to have negative consequences on the value of the Pound.

Unemployment news was a little more positive, with the rate steady at 8.2%. The number of benefit claimants posted a surprise rise of 8,100, but the wider ILO measure showed that 51,000 fewer people were without jobs. Hardly exciting news for the UK economy, and this morning due to these releases, sterling has fallen slightly across the board.

UK inflation faills to 2 year low

Tue, 19 Jun 2012 00:00:00 GMT

The Pound is under pressure this morning as official figures showed inflation at its lowest level for over 2 years, increasing the probability of further QE from the Bank of England.

Slower price rises for fuel and food pushed cosumer inflation down to 2.8% on the year.

The figures may soften the reluctance of some BoE policy makers to extend QE which came to a halt in May - which would not be good news for the Pound or exchange rates for those of you making international payments.

The minutes of the May meeting of the Bank of England committee are out tomorrow, at the same time as UK unemployment figures.

Currency News This Week 180612

Mon, 18 Jun 2012 00:00:00 GMT

It has been a good weekend for Greek prospects of staying in the Euro (and indeed the Euros after their surprise victory over Russia). The pro-bailout New Democracy Party has gained enough votes to form a coalition with the socialist party Pasok, meaning that Syriza, which would have rejected the EU bailout prompting a Greek exit from the Euro, will be left in opposition.

This has far reaching consequences for the world economy, and is seen by analysts as the least-bad short term solution. Once the bailout goes ahead, the Eurozone should at least have some time to stabilise, with other indebted economies such as Spain given respite from contagion.

So we could see some Euro strength in the coming weeks, assuming that a period of some stability follows. This is not good news if you are sending payments to the single currency area, and it may be worth considering a forward contract to secure a rate now for payments you have coming up. As a registered client, you can request a no-obligation quote from us at any time.

Last week we saw some improvement for the Pound against the US Dollar, as investors moved money back out of the USA prior to the Greek elections. Exchange rates for buying US Dollars (and pegged currencies such as the UAE Dirham) improved by nearly 2% last week.

This week we have the G20 summit today and tomorrow, and important data out in the UK on Tuesday (consumer inflation) and Wednesday (Bank of England minutes). The Bank of England minutes in particular will give us an insight as to the appetite for further Quantitative Easing in the UK, which the Bank extended this month. If the option of even more QE was discussed in any detail, sterling would be likely to fall.

Exchange rate news

Fri, 08 Jun 2012 00:00:00 GMT

It seems the Eurozone cannot stay out of the headlines - and now Spain has asked for a European bailout.

At home, the Bank of England surprised many last week by choosing not to extend its Quantitative Easing progamme - giving the Pound a short term boost on Thursday.

Despite the Eurozone problems and the Bank of England announcement, sterling has struggled to find any strength, asserting the markets' caution around the UK economy and our exposure to the wider Eurozone crisis. Indeed Euro exchange rates have been steady for the past week, with a little improvement for the Pound against the US Dollar and pegged currencies such as the UAE Dirham.

This week, there is no major UK data due out apart from industrial production on Tuesday. We also have the European Central Bank monthly report and US inflation and retail sales; at the risk of repetition, Eurozone stability is likely to dominate financial headlines.

For those of you sending money to or from Australia, last week's very strong GDP data has strengthened the AUD, with exchange rates dropping over 2c last week. The New Zealand Dollar gained in value too, while rates for buying Thai Baht also dropped around 1%. Rates for buying Canadian Dollars and South African Rand were relatively stable.

Let's see what happens with Spain, while Greece are more in the headlines for their draw with Poland more than their ongoing financial instability. At Currency Index we will be cheering on England this evening, although as with the Pound we do not hold out much hope for a great performance

Bankia bailed out in Spain

Sun, 27 May 2012 00:00:00 GMT

The Spanish government has had to step in with €19bn to bail out Bankia - the biggest bank bailout in history.

The Euro weakened on Friday as you might expect, giving better rates for Euro money transfers, but only a little against the Pound, which is heavily exposed to European debt. The biggest moves have come against the US Dollar, which has strengthened against both the Euro and the Pound significantly this month.

This week, there is little important data due out around the world as we head towards month end, so the ongoing Euro crisis is likely to dominate headlines and exchange rates.

US Dollar rate lowest since March

Fri, 25 May 2012 00:00:00 GMT

The US Dollar is fast becoming a "safe haven" currency, with investors flocking into dollar assets during uncertain times in and around the Eurozone.

The effect is more demand for the US Dollar, which makes it more expensive. US Dollar exchange rates have fallen. Agains the Pound, we have only seen lower rates for buying USD twice this year, in January and March.

As uncertainty around the future of the Euro and Greek/Spanish debt continues for what seems like an eternity, the USD could strengthen further. If you have payments to send in dollars it may therefore be worth considering cutting your losses and securing a rate sooner rather than later. For those of you selling dollars back to sterling, you have gained nearly 4% in value n the last 3 weeks.

GDP revised down

Thu, 24 May 2012 00:00:00 GMT

Today's GDP figures have revised last month's estimate downwards, to a -0.3% quarterly contraction, and the first year-on-year contraction for some years. Hopes of an improvement to the figure on its second reading, which may have technically meant the UK was not in recession, have proved unfounded.

The Pound will not take favourbaly to the figures, althgouh the slight revision downwards is not a huge shock to the markets, which are still concentrating on the escalating Euro crisis. Those of you waiting for better exchange rates to make an international payment however, may have longer to wait as a prolonged recession will not help sterling.

Retail Sales fall

Wed, 23 May 2012 00:00:00 GMT

Retail sales in the UK posted a shock fall in April, in more bad news for the UK economy.

The Bank of England minutes also showed that the monetary policy committee considered more Quantitative Easing this month, and the prospect of a further cash injection now seems inevitable. This will not be good news for the Pound, particularly if tomorrow's GDP figures confirm that the UK is again in recession.

The Pound has fallen significantly against the US Dollar in recent weeks, and has perhaps only been supported against the Euro due to the ongoing problems in Greece, where elections on June 19th will be a crunch test of the likelihood of Greece staying in the Eurozone.

International payment rates are particularly volatile at the moment and anybody with exposure, whether for business or personal transfers, should speak to their currency broker about the options available.

UK inflation at lowest for 2 years

Tue, 22 May 2012 00:00:00 GMT

The Pound has fallen in morning trading today, as the prospect of further QE was raised by the lowest UK consumer inflation figures for 2 years.

CPI eased to 3% in April, down 0.5% from March. Government borrowing for the last fiscal year was also revised down, and public sector finances showed a record surplus for April too.

On Thursday we have UK GDP, which could be another major influence on exchange rates. Rates for money transfers in US Dollars and Euros abroad have both fallen in the last week, and unless GDP is revised up, we could see this theme continue.

Indian Rupee hits best rate for 6 years

Mon, 21 May 2012 00:00:00 GMT

The Indian Rupee has weakened to its lowest level since 2006, making money transfers to India the cheapest they have been in that time.

Despite rising fuel costs and a growing economy, the rupee has continued to weaken, achieving a level of over 87 against the Pound for the first time since November '06. Anybody sending payments to India to pay for property or import goods, can take advantage and reduce the cost of their purchase in India

Currency news this week 140512

Mon, 14 May 2012 00:00:00 GMT

Another good week for sterling last week, as the Pound took advantage of further factions in the Eurozone to hit its best rate against the single currency for over 3 years. Greek and French political uncertainty, with rising anti-austerity sentiment across the Eurozone, have hurt the Euro and are providing excellent exchange rates for Euro payments.

Against the US Dollar, rates have also remained stable near the top of recent trading ranges.

This week, we have a lot of data out which will do much to define sterling's next movement. The most important is Wednesday's quarterly inflation report, which is seen by markets as an indicator of inflation, growth, QE and interest rates in the UK. All of these are of influence on the Pound, so we would expect to see some volatility. If the Bank of England are predicting inflation to fall and growth to continue stalling, the outlook will be for interest rates to stay where they are and the possiblity of increasing QE will be on the agenda again. Last week, the Bank decided not to increase QE for May, which was one of the positive factors for sterling.

On Tuesday we also have the UK goods trade balance, as well as unemployment on Wednesday. Both are important and we see the Pound as susceptible to a fall if any weak data should emerge to remind us that whatever the troubles elsewhere in the world, the UK economy is not exactly winning any prizes either.

For those of you buying or selling US Dollars, the Federal Reserve minutes on Wednesday evening will also be one to watch.

Australian Dollar stronger after unemployment figures

Thu, 10 May 2012 00:00:00 GMT

The Australian Dollar has strenghtened after figures overnight showed a surprise drop in unemployment to 4.9%. 15,500 new jobs were created in Australia, compared to expectations of 5,500 job losses.

Australian Dollar exchange rates have dropped over a cent overnight, and as we await the Bank of England's QE decision later on today there could be more volatility ahead. We also have the European Central Bank monthly report, and US trade balance due out later today.

Currency news this week 080512

Tue, 08 May 2012 00:00:00 GMT

Recession? What recession? The Pound has been busy shrugging off British economic woes, as currency markets have instead focussed on weak markets elsewhere in the world. Last week saw the best rates in several months or longer, for buying Euros, US Dollars, Thai Baht, Australian Dollars, and Canadian Dollars to name a few.

New uncertainty in the Greek government and anti-austerity parties gaining popularity, along with a new socialist government in France, mean that there are rumblings of more political problems ahead, with the delicate accord over spending cuts now looking likely to be stretched to the limit in the coming months. Chancellor Merkel has already fired a warning shot to Greece, where there may be further elections, casting doubts on the government's willingness to stick to the austerity measures already agreed as part of the recent bailout. Spain, of course, has its own debt problems bubbling under as well.

In the USA, key jobs data on Friday showed fewer people gained employment than expected, keeping the US Dollar weak against the Pound too. Further afield, a surprise 0.5% cut in Australian interest rates helped the Aussie lose value and keep exchange rates for sending AUD relatively good.

This week, the busiest day looks set to be Thursday, when we have key data out in the UK, Eurozone, USA and Japan, so all 4 of the world's major currencies could be in for some volatility. With the ongoing political situation across Europe becoming ever more complex, consider taking advantage of the current strong Pound if you need to send money abroad, as we have seen in the past that the situation can turn round very quickly.

Canadian Dollar rates best since December

Mon, 07 May 2012 00:00:00 GMT

Canadian Dollar exchange rates have hit their best level since December, with a mid-market high today of over $1.61 against the Pound. This comes despite better than expected building data released in Canada this afternoon.

The Pound's recent strong performance, even in the face of the UK slipping back into recession, has seen Canadian Dollar exchange rates improve nearly 6% in the last 3 weeks. If you are looking to emigrate to Canada or need to send a payment there, now could be a good time to look at locking into an exchange rate to take advantage.

Interest rates held in Eurozone

Thu, 03 May 2012 00:00:00 GMT

The European Central Bank (ECB) today has held interest rates at 1% as expected. Sterling has remained relatively stable through trading today against the Euro and most other currencies, despite worse-than-expected services sector growth announced in the UK economy.

Lower European producer inflation and worse US manufacturing than expected have kept the Euro and US Dollar trading weakly, maintaining the strong exchange rates for sterling that we have been enjoying for the past week or two.

Tomorrow we have Eurozone retail sales and US unemployment figures, as well as Australian monetary policy and Swiss retail sales too, before we head into the long weekend.

UK mortgages give Pound a boost

Wed, 02 May 2012 00:00:00 GMT

Sterling has held its ground today and even improved against many currencies, as the UK mortgages data this morning showed better than expected results. This was helped particularly against the Euro, as the single currency zone reported an increase in unemployment to 10.9%.

The Pound hit rates of 1.23 against the Euro and 1.6230 against the US Dollar. For Australian money transfers, we saw rates of 1.5730 this morning.

Australia cuts interest rates

Tue, 01 May 2012 00:00:00 GMT

Money transfers to Australia have become significantly cheaper overnight, as the Reserve Bank of Australia unexpectedly cut interest rates by 0.5% to 3.75%. Expectations of a 0.25% cut were exceeded, and since lower interest rates tend to mean a weaker (cheaper) currency, we have seen the Pound improve by 2c against the AUD overnight.

Australian dollar rates were already enjoying some of their best levels in recent months, and have now hit their best level since November for anybody needing to transfer money down under.

Currency Market Update - April 30th

Mon, 30 Apr 2012 00:00:00 GMT

Well it seems that a week is a long time for the UK economy - last week we went from the 'green shoots' of lower unemployment and imminent recovery, to the desperation of a double-dip recession. Away from the headlines, the Pound has stayed surprisingly strong.

Sterling has certainly shown resilience in the face of bad news, but perhaps markets are not too worried by the very small contraction in GDP, which may be revised away in any case later in May, and of course the US and European economies are faring no better than the UK. This was shown last week by American GDP coming in much lower than expected on Friday, and European consumer confidence on Thursday also taking a tumble. These data have kept the Euro and US Dollar weaker, and helped to maintain higher exchange rates for the Pound.

This week, there is very little important data due out for sterling, but we have the important unemployment releases in Europe and the USA on Wednesday and Friday respectively. If these bring further bad news, we could see windows of opportunity to buy Euros and US Dollars at attractive levels this week, ahead of the long weekend and potential for more bad news from the UK next week.

Further afield we have Australian interest rates overnight, and New Zealand unemployment on Wednesday night, as well as Canadian GDP this afternoon. Interest rates in the USA and New Zealand last week were both held, in line with expectations.

Last week set a new 22-month high for Euro rates, and today has seen the best rates for buying USD since August; while rates for sending Thai Baht have also hit their best for 11 months. Don't forget that markets can change direction very quickly, and sometimes it is better not to look a gift horse in the mouth!

Data Releases This Week

Monday 30th
0700 - German retail sales
1000 - Eurozone consumer inflation
1330 - US personal imcome & expenditure; Canadian GDP

Tuesday 1st
0530 - Australian interest rate decision
1500 - US construction

Wednesday 2nd
0815 - Swiss retail sales
0855 - German unemployment rate
0930 - UK mortgage approvals
1000 - Eurozone unemployment
2345 - New Zealand unemployment

Thursday 3rd
1000 - Eurozone producer inflation
1245 - Eurozone interest rate decision

Friday 4th
0230 - Australian monetary policy statement
1000 - Eurozone retail sales
1330 - US non-farm payrolls & unemployment rate

Pound resilient in the face of recession

Sun, 29 Apr 2012 00:00:00 GMT

Overrall, the Uk economy shrunk 0.2% in the first three months of 2012. This has come as a surprise for many, as recent decisions by the Bank Of England suggested that they believed the country wasn’t going to slip back into recession. However, those who have been keeping an eye on current exchange rates might be confused as to why this negative Uk economic data isn’t proving to be bad for sterling. In fact, it appears to be quite the opposite, with the pound gaining strength against the euro. As well as that, surveys conducted during March show an increase in consumer confidence in Britain.

The Prime Minister has vowed to stick to the Government’s economic plans, a statement that may have gone some way to alleviate fears of the Uk economy becoming completely unstable.

More bad news for the Eurozone this week, as Spanish unemployment hit a record high of 24.4%, with 5.64 million Spaniards unemployed. This is especially distressing for Spain, as their unemployment rates now exceed that of Greece. Italian debt auctions were comparatively successful, but not to the extent that the Euro made any major gains. The French general elections may be causing some concern for the markets, as buyers warily await the results. It should be worth nothing that the socialist candidate, Francois Hollande, has set out a plan for growth should he win, which would go hand in hand with German chancellor Angela Merkel’s plans for growth. For the time being, however, the troubles in the Eurozone utterly dwarf the comparatively minor problems in the Uk economy. As a result, this week has given us the best rates for transferring sterling to Euros for 20 months. However, as the UK economy is in a precarious position, it is unknown how long these rates will last for, especially as it may lead to more Quantitative Easing from the Bank Of England.

Surprisingly, the both the Euro and Sterling have seen a sudden resurgence against the US dollar this week. In the pound’s case, we are seeing an 8 month high against the US currency, giving us the best rates for money transfers to the USA so far this year. This is mostly owing to US policymakers considering the possibility of further monetary easing, and the chairman of the U.S. Federal Reserve stating that any weakness in the U.S. economy would be met with another round of bond purchases.

Anyone looking to get the best rates for transferring currency, or to receive the latest currency news, can register for free with Currency Index Ltd.

UK is back in recession

Wed, 25 Apr 2012 00:00:00 GMT

The Pound took a hit this morning as official figures show that the UK economy is now back in recession, having posted a 0.2pc contraction in the first quarter of 2012.

Expectations of a modest 0.1pc growth were dashed by figures which PM Cameron called "very, very disappointing".

Sterling recovered in afternoon trading but could be in for a fall if the Bank of England decides to extend its Quantitative Easing programme at its meeting in easly May to counter the prospect of a drawn out economic contraction.

The figure was more shocking given recent positive economic data which has pointed to a recovery in the UK and therefore boosted the Pound, which now looks susceptible to falling back in the coming days.

New Zealand and USA keep interest rates on hold

Wed, 25 Apr 2012 00:00:00 GMT

As expected by the markets, the US and New Zealand central banks have this evening kept their interest rates on hold, with little effect on the value of their respective currencies.

Both the US Dollar and New Zealand Dollar rates have finished the day at virtually the same point against the Pound as they started, despite the UK economy officially slipping back into recession today. Both pairs remain near the top of recent trading levels and are good value if you are looking to send money to the USA or New Zealand for property purchases, emigration, to a family member, or importing goods.

Thai Baht hits best rate for 11 months

Tue, 24 Apr 2012 00:00:00 GMT

Sending payments to Thailand has not been cheaper since May 2011, as the Baht hit a rate of 50 to the Pound in trading today.

The Thai currency is now nealy 6pc cheaper than at is strongest in September, reducing the cost of Thailand money transfers as the Pound continues to perform well across the board. Whether you are buying property, importing goods, or sending money to family or friends, now could be a good time to look at securing your exchange rate for Thai Baht.

Tomorrow we have the UK GDP reading which may show that the UK has headed back into recession, in which case sterling would be likely to fall back.

Currency Outlook this week

Mon, 23 Apr 2012 00:00:00 GMT

Last week saw further gains for the Pound, as expectations of any further monetary easing fell, along with higher inflation and retail sales figures which pushed exchange rates higher. We sae a new best level for Euro exchange rates since August 2010, and the best rates for buying US Dollars for around 5 months.

The Euro was also weaker on continued Spanish debt anxiety, and the US Dollar was cheaper after worse than expected manufacturing and home sales figures.

Exchange rates cannot rise for ever though, and it is worth noting negative comments in the weekend press over the UK's own economic recovery prospects. Despite GDP remaining positive there is still a genuine risk of recession, and with that in mind the next GDP figure due out on Wednesday is certainly a potential banana skin for the Pound.

Many clients have been locking in their exchange rates over the last week with a view to ensuring they don't miss out on the Pound's current resurgence.

Apart from public borrowing on Tuesday there is no other major UK data out, while German retail sales on Thursday will be important for Euro prospects. With US GDP, Swiss trade balance, Canadian retail sales and New Zealand interest rates all announced this week, we could see some volatility in rates.

Pound up further against Euro, and past 1.60 against US Dollar

Thu, 19 Apr 2012 00:00:00 GMT

Sterling has continued its slow rise today, with the key $1.60 level against the dollar being breached this morning. Agains the Euro, 1.2250 was seen as a market rate around 9am.

The US Dollar rate has been helped by weaker than expected jobless figures, which have made the Greenback cheaper, and contrasting with the UK unemployment figures yesterday which were better than expected.

The next major UK data due out is retail sales, at 9.30am on Friday. Whether we will see good news, and more gains for the Pound, or a retraction due to weaker data, will be seen in the morning.

Unemployment falls for first time in a year

Wed, 18 Apr 2012 00:00:00 GMT

UK unemployment has registered its first fall since Spring 2011, in the latest piece of good news this week to give the Pound a boost.

For the fourth time in a week, sterling has hit new 18-month highs against the Euro, and is also up agains the US Dollar and most other currencies. The Euro in particular continues to be dogged by Spanish debt problems.

Sending payment abroad to most countries is now cheaper than in recent months, so consider fixing an exhange rate now for your upcoming requirements.

Pound up as inflation posts a rise

Tue, 17 Apr 2012 00:00:00 GMT

UK inflation posts first rise since Sep, sterling follows

The Pound is up in trading today, as UK inflation figures rose slightly, in the first increase since September. The official measure, CPI, was up from 3.4% in February to 3.5% in March.

The news is likely to move further Quantitative Easing off the Bank of England's agenda, and consequently sterling is up across the board today, moving back to near the top of its recent trading ranges against a basket of currencies.

Eurozone inflation was also up, but the struggling Euro failed to gain any strength, giving us excellent rates for buying Euros.

Elsewhere, rates for sending money to Canada have dropped 2c after the Bank of Canada kept interest rates on hold at 1% but said that higher borrowing costs "may become appropriate", giving strength to the Canadian Dollar as a potential safe haven curency.

Currency news this week 160412

Mon, 16 Apr 2012 00:00:00 GMT

Sterling enjoyed another good week after the Easter break, particularly against the Euro where we saw the best exchange rates since August 2010. However we have a busy week ahead, and any signs of economic weakness in the UK will be likely to send the Pound lower, since sterling may prove not to be the safe haven currency that investors are hoping for.

The key events to look out for in the UK are likely to be Tuesday's inflation figures, Wednesday's Bank of England minutes, and Friday's retail sales. Remember that it is good for UK exports if the Pound weakens, so the Bank of England may be keen to halt the recent rise in sterling's value too.

Last week also saw improvements in exchange rates for sterling against the South African Rand, but falls against the Australian Dollar and Japanese Yen. In trading today, the Pound has lost value against the Euro, but gained against the Canadian and US Dollars and UAE Dirham rates, despite better than expected US retail sales figures.

Spanish debt problems also continue to hit the headlines, with the cost of borrowing for the Spanish government this morning rising above 6% for the first time since December. Spain may now impose tough spending cuts on the 17 regional authorities in an effort to placate markets and avert a Greek-style crisis, which of course will have implications for Euro exchange rates in the coming weeks and months.

Euro and US Dollar exchange rate update

Fri, 13 Apr 2012 00:00:00 GMT

Euro weaker, Dollar stronger as week draws to close

Sterling has finished the week up against the Euro, as concerns about the rising cost of debt swept equity and currency markets. The Pound is up nearly a cent to the top of recent trading ranges as we head towards the weekend.

The US Dollar, conversely, is stronger with rates for sending US Dollars a cent lower than at the beginning of the day. US producer inflation figures, out today, showed stonger demand than expected, in a rare piece of good news for the US economy which has increased the cost of the dollar.

Next week, we have Eurozone trade balance figures on Monday morning, and US retail sales on Monday afternoon, both of which are influential on currency values. The next major UK data is consumer inflation, out on Tuesday at 9.30am.

Euro slips on Spanish worries

Fri, 13 Apr 2012 00:00:00 GMT

The Euro has weakened (become cheaper) as data today showed that Eurozone banks are still heavily reliant on ECB lending, with Spanish bond prices rising and spreading new fears about contagion of the sovereign debt crisis.

Worse than expected Chinese growth data also affected the single currency, while the Canadian and US Dollars have both strenghtened, with rates for Canadian bank transfers down half a cent during European trading today.

Swiss unemployment falls

Tue, 10 Apr 2012 00:00:00 GMT

Swiss franc exchange rates have fallen slightly today, after better than expected unemployment figures released this morning. The official rate of 3.2% for March was better than the previous month's 3.4%, and better than expectations of 3.3%.

The good news rallied the Swiss Franc in trading today, so exchange rates fell to a low of 1.4529 from opening at 1.4588.

Currency Watch April 2012

Mon, 09 Apr 2012 00:00:00 GMT

CURRENCY WATCH

APRIL 2012

A look back at exchange rates in March, and the headlines likely to be affecting rates in April for buyers of overseas property.

In contrast to the first 3 months of the year, March saw the Pound finish higher against all major currencies, in good news for buyers of overseas property. Some tentative signs of recovery in the UK have helped sterling, while new fears over government debt in Europe (Spain specifically) and structural problems in the US, have kept other currencies weaker.

In March, the most improved exchange rate was GBP-AUD, with the Australian Dollar over 4% cheaper at the end of the month. The Aussie has remained very strong over recent history, so this will come as some respite for Brits looking to emigrate to Australia.

The South African Rand and New Zealand Dollar rates also posted impressive improvements.

For the mainstream US Dollar and Euro, we have seen modest improvements in rates, and a relatively stable month with the Euro rate only varying (from high to low) 1.53% in March, compared with 2.75% in February.

Exchange Rate Movement against sterling, March 2012

Overseas property buyers should be aware of key events coming up in April which are likely to affect exchange rates and therefore their overseas property prices:

Ongoing: stability or not for the Eurozone – is Spain the next Greece?
Thursday 5^th: Bank of England monthly policy announcement
Thursday 12^th: Trade balance
Tuesday 17^th: CPI inflation
Wednesday 18^th: Bank of England minutes
Friday 20^th: Retail sales
Wednesday 25^th: GDP

For comment and analysis on any of the above, please contact Currency Index or see our blog which is updated throughout the month: www.currencyindex.co.uk/blog/

Applying the exchange rate change to recent changes in local property markets around the world reveals the real change in cost to British buyers of property around the world.

		Currency Cost	Property Cost	OVERALL PRICE CHANGE
Greece	EUR	-0.42%	-5.89%	-6.31%
Australia	AUD	-4.33%	-1.05%	-5.38%
South Africa	ZAR	-2.73%	-2.33%	-5.06%
Portugal	EUR	-0.42%	-3.42%	-3.84%
Spain	EUR	-0.42%	-2.86%	-3.28%
Thailand	THB	-1.68%	0.00%	-1.68%
Canada	CAD	-1.56%	0.00%	-1.56%
USA	USD	-0.57%	0.06%	-0.51%
France	EUR	-0.42%	0.00%	-0.42%
New Zealand	NZD	-2.53%	3.36%	0.83%
Switzerland	CHF	-0.26%	1.89%	1.63%

The cost of overseas property for British buyers has again fallen in real terms in many overseas markets. A property in Portugal is now nearly 4% cheaper for example, due to recent falling local prices combined with a better exchange rate.

The recently-reported plummet in Spanish property prices will likely filter through to next month’s Currency Watch and we would expect to see the overall cost for UK buyers, particularly in Europe, to become even more attractive just as the traditional season for Brits buying in the sun picks up pace. Happy bargain hunting!

Data: Currency Index Mar ’12 / Global Property Guide Q4 2011

Australian Dollar rates best this year

Wed, 04 Apr 2012 00:00:00 GMT

Anyone making Australian money transfers will be pleased to know that rates have today hit their best in 2012. The Reserve Bank of Australia kept interest rates on hold this week, and a combination of weaker Australian retail sales data this week along with moves away from higher yielding currncies, have improved the GBP-AUD rate to around 1.55.

The rate has been further improved after this morning's trade balance figure showed a AUD480m deficit, against expectations of a AUD1bn surplus.

Currency news this week 020412

Mon, 02 Apr 2012 00:00:00 GMT

As we head into April, a very busy week of data releases could lead to a volatile week for exchange rates before the Easter weekend. Check back through the week for updates or fill in your details at the top of the page for a free quote on your own transaction.

This week's news releases are as follows:

Monday 2nd
0815 - Swiss real estate sales
0858 - Eurozone manufacturing inflation
1100 - Eurozone unemployment rate
1500 - US construction spending & manufacturing

Tuesday 3rd
0230 - Australian retail sales
0530 - Australian interest rate decision & policy statements
1000 - Eurozone GDP & production
1500 - US factory orders

Wednesday 4th
0230 - Australian trade balance
0928 - UK services sector growth
1100 - German factory orders
1245 - Eurozone interest rate decision & statement
1315 - US employment change

Thursday 5th
0815 - Swiss consumer inflation
0930 - UK industrial & manufacturing production
1200 - UK interest rate decision & QE
1200 - Canadian unemployment rate
1500 - UK GDP estimate

Friday 6th
Good Friday
1330 - US non-farm payrolls & unemployment rate

USD Rate hits 1.60

Fri, 30 Mar 2012 00:00:00 GMT

The US Dollar rate has hit 1.60 in trading this morning for the first time since November.

Sterling is also up against the Euro at nearly 1.20, despite positive German data, and generally exchange rates for international payments have improved in the last 24 hours. For a quote on a trading rate for your own transaction, please fill in the form above and we will put you in touch with an FSA-regulated currency broker in the UK.

New Zealand trade balance improves

Mon, 26 Mar 2012 00:00:00 GMT

New Zealand Dollar exchange rates have dropped overnight, as figures showed a better than expected February trade balance, at $161m.

This shows an improvement in the New Zealand economy, and therefore the value of the New Zealand Dollar has increased, giving worse rates for money transfers to New Zealand.

If you are watching NZD rates, we also have business confidence figures released at 1am and building permits data at 2245 on Thursday.

Exchange Rate Update

Mon, 26 Mar 2012 00:00:00 GMT

Last week was fairly quiet for the Pound, which traded in a narrow range against most major currencies. Against the Euro and US dollar, exchange rates did not move more than a cent all week despite the UK budget, Bank of England minutes and inflation data. We did see some movement against the New Zealand dollar, with rates up to their best this year, after poor GDP figures in New Zealand.

This week, as we approach the end of March, there is still plenty of news due out which could affect exchange rates. At home we have a GDP revision, current account figures, and consumer credit, while in Germany the unemployment, inflation and consumer confidence figures are all likely to influence the Euro, particularly as the rest of the Eurozone looks to German growth to keep sovereign debt crises out of the headlines.

In the USA, dollar rates are still near to recent highs, and with consumer confidence, GDP, consumer credit and personal income all due out this week, we could see some volatility in the dollar.

All exchange rates remain susceptible to weak figures, as the supposed recovery in worldwide economies is yet to convince the markets. We also have speeches from the highly influential heads of the US Federal Reserve and European Central Bank, which can have a pronounced effect on currencies.

Currency exchange rate news due out this week

Sat, 24 Mar 2012 00:00:00 GMT

Currency News due out this week

This week despite nearing the end of the month, there is plenty of economic data likely to keep currency markets moving. Check back for daily updates on the latest currency news here.

Monday 26th
0700 - UK house prices (Nationwide)
1300 - Speech: Federal Reserve (USA) Ben Bernanke
1700 - Speech: ECB President Draghi

Tuesday 27th
All day - G7 meeting
0700 - German consumer confidence
0930 - UK current account
1500 - US consumer confidence

Wednesday 28th
0700 - German consumer inflation
0930 - UK GDP revision and business investment
1330 - US durable goods

Thursday 29th
0100 - New Zealand business confidence
0855 - German unemployment
0930 - UK consumer credit and mortgage approvals
1330 - US GDP revision

Friday 30th
0030 - Japanese unemployment rate
0700 - German retail sales
1000 - Eurozone consumer inflation
1330 - US personal income and expenditure

Currency News

Mon, 19 Mar 2012 00:00:00 GMT

Latest Currency News;
Budget this week

This week's economic calendar is dominated by the UK budget on Wednesday, although there are plenty of other important news releases to be aware of, whichever currency you need to buy or sell.

Perhaps more importantly for sterling, we have UK inflation figures tomorrow, and Bank of England minutes plus public borrowing on Wednesday morning. These will all set the tone for growth and interest rate expectations, both of which have an influence on exchange rates. Generally, lower inflation and growth forecasts will lead to a weaker Pound and lower exchange rates for sending money abroad.

Overseas, there is no significant Eurozone data due out until Thursday's consumer confidence figures, and with sovereign debt crises not dominating headlines as much, it could be a quiet week for the Euro. There is still the underlying threat of Greek debt defaults in the future, and of the crisis spreading to other economies in the coming months. For now, Euro rates are near the top of their recent trading ranges.

The US Dollar suddenly looks weaker, after Friday's inflation figures showed pressure building in the US economy. The cost of a US Dollar reduced by over 1% on Friday and exchange rates have climbed again this morning, giving the best rates for buying USD for some weeks.

At home last week, unemployment data on Wednesday was not encourging, but broadly as expected, so sterling fell a little but has since recovered. A slight warning perhaps of the Pound's susceptibility to negative data.

Many buyers are currently using Forward Contracts to lock into rates for the coming months, and if you would like to see what kind of rates are available to fix for your own requirements, please contact Robin Haynes for a quote, alternatively simply reply to this email.

Do also check currency blogs around the internet which are updated throughout the week with breaking news.

Currency news this week 180312

Sun, 18 Mar 2012 00:00:00 GMT

This week's currency news

This week sees the UK budget on Wednesday, as well as important news out around the world likely to affect exchange rates:

Monday 19th
No major data

Tuesday 20th
0030 - Reserve Bank of Australia minutes
0700 - German producer inflation
0815 - Swiss industrial production
0930 - UK consumer & retail inflation
2145 - New Zealand current account

Wednesday 21st
UK budget
0930 - Bank of England minutes & public sector borrowing
1400 - US existing home sales
2145 - New Zealand GDP

Thursday 22nd
0700 - Swiss trade balance
0930 - UK retail sales
1230 - Canadan retail sales
1500 - Eurozne consumer confidence

Friday 23rd
1100 - Canadian consumer inflation
1400 - US new home sales

Canadian investment and manufaturing falls

Sat, 17 Mar 2012 00:00:00 GMT

Canadian Dollar exchange rates are up a little, after weaker than expected data showed foreign investment in Canadian securities has fallen, as have manufacturing shipments.

Rates for Canadian Dollars agains the Pound are currently around their mid-point in recent trading history, with the market rate at around 1.57, having been below 1.55 in recent weeks.

US infation weakens dollar

Fri, 16 Mar 2012 00:00:00 GMT

Today's inflation figures from the USA weakened the dollar, improving exchange rates for sending money to the USA.

Rates have improved nealy 1% during the afternoon, reversing the trend so far through the week, after figures showed that inflationary pressure is building in the US economy, and also data showing industrial production growth was flat in February.

Buying US dollars is now as cheap as 10 days ago and near the top of recent trading ranges.

Unemployment stays at 8.4pc

Wed, 14 Mar 2012 00:00:00 GMT

Unemployment stays at 8.4pc

Today's headline unemployment figure of 8.4% is the same as last month and as expected, but youth unemployment hit a record high in January.

The Office for National Statistics said the total number of benefit claimants rose by 7,200 to 1.6 million.

While not disastrous, the slightly negative news has caused the Pound to fall, putting an end to the run we have seen for better exchange rates in the last 48 hours. We are still near to 2012's best rates for sending Euros, and tomorrow we have Eurozone unemployment figures as well as the European Central Bank monthly report.

EU ministers meet today

Mon, 12 Mar 2012 00:00:00 GMT

EU ministers are meeting today and are expected to give final approval to the Greek bailout deal. The Euro has been strengthening (giving worse rates for sending Euros) this morning, despite worries over Spain missing new deficit targets, but having signed off the credit swap with private creditors last week, Greece will now be in line to receive its bailout payout before the looking deadline to refinance its debts.

The Pound is also falling back against the US Dollar, having lost nearly a cent in morning trading.

Interest rates held - Pound stable

Thu, 08 Mar 2012 00:00:00 GMT

Today's interest rate decisions have not thrown up any surprises, and Quantitative Easing in the UK has remained the same.

Interest rates, which are a key factor in exchange rate fluctuations, have been held steady in the UK (0.5%), Eurozone (1%) and Canada (1%). QE, which tends to hurt the Pound, has been held too.

ECB President Draghi is speaking this afternoon, and markets will be nervous ahead of tonight's Greek bond swap deal deadline. For now, sterling is up against the US Dollar and down against the Euro, which may strengthen further tonight if the final hurdle for Greece's bailout is overcome. Sending money to Japan is also slightly cheaper, with the Yen 1% lower against sterling.

Australian interest rates held

Tue, 06 Mar 2012 00:00:00 GMT

Australian interest rates held

The Reserve Bank of Australia this morning held interest rates at 4.25%, in a widely expected move. The Australian dollar held steady on the news at 3.30am UK time, and rates for sending money to Australia are currently sitting at their best since January, although overall rates remain low compared to recent years.

In the UK this morning, house price data from the Halifax has shown a 0.5% fall in house prices in February, causing the Pound to fall slightly as the fragile economic recovery remains responsive to any negative news.

Thai Baht rate improves

Tue, 06 Mar 2012 00:00:00 GMT

Having fallen to 47.62 a couple of weeks ago, the Thai Baht has weakened again, with current mid-market trading levels at 48.57. Good news for those of you who are sending money to Thailand. Recent highs are at 49.45 back in December.

Services growth slows, but still indicates economy picking up

Mon, 05 Mar 2012 00:00:00 GMT

Services growth slows, but still indicates economy picking up

This morning's UK services PMI showed that the dominant services sector in the UK grew less than expected in February, but combined with the manufacturing data last week shows that Britain is on course to stave off a second recession.

The British Chambers of Commerce said that Britain will avoid a recession and the Bank of England will not need to inject anymore stimulus, but the recovery will be weak and the government should step up its efforts to boost growth.

This makes the most likely course for sterling unclear, particularly as the Eurozone crisis looks to have been averted for now and we could see some Euro strength in the coming weeks. Later this week we have key data releases in Europe, the USA, Australia, Canada and New Zealand, so check back for the latest currency news as it happens.

This week's currency news

Sun, 04 Mar 2012 00:00:00 GMT

This week's currency news

This week's currency news schedule is a busy one, as we have the monthly round of interest rates in several countries as well as important industrial and consumer figures out around the world.

Monday 5th
0815 - Swiss retail sales
0928 - UK services sector PMI
1000 - Eurozone retail sales
1500 - US factory orders

Tuesday 6th
0330 - Australian interest rate decision
1000 - Eurozone GDP

Wednesday 7th
0030 - Australian GDP
1100 - German factory orders
2000 - New Zealand interest rate decision

Thursday 8th
0030 - Australian unemployment rate
0815 - Swiss inflation (CPI)
1100 - German industrial production
1200 - Bank of England QE & interest rate decision
1245 - Eurozone interest rate decision
1400 - Canadian interest rate decision

Friday 9th
0030 - Australian trade balance
0700 - German inflation (CPI)
0930 - UK industrial & manufacturing production
1200 - Canadian unemployment rate
1330 - US trade balance, unemployment & non-farm payrolls

Canadian Dollar boosted by GDP

Fri, 02 Mar 2012 00:00:00 GMT

Canadian Dollar boosted by GDP

Canadian GDP, released today, showed a surprise increase to 0.4% in December, strengthening the Canadian Dollar (CAD) and causing rates for sending money to Canada to fall over a cent against the Pound.

Sterling is up slightly against the Euro despite the Fiscal Pact being signed off at the EU summit today, but has fallen back from recent highs against the US Dollar during trading today.

On Monday we have UK services sector data which is an important indicator of the health of the UK economy, and can therefore have a pronounced effect on the Pound.

Fears of recession fall back, sterling rides higher

Thu, 01 Mar 2012 00:00:00 GMT

Fears of recession fall back, sterling rides higher

The Pound has continued to climb, as the manufacturing sector expanded again in February. Although not as much as expected, the increase shows that the UK is slowly heading away from a double-dip recession danger zone. Monday's services sector data, which accounts for a larger portion of UK output will be more revealing.

In contrast, the Eurozone unemployment level has hit a new record high today, German manufacturing growth has slowed, and Spain's factory decline has put the country on course for a new recession.

Not surprisingly, Euro exchange rates have improved again, with the single currency cheaper after the data releases.

In the US and Canada today, mixed data has held exchange rates steady.

US Dollar cheaper on poor manufacturing data

Tue, 28 Feb 2012 00:00:00 GMT

The US Dollar has weakened again, giving better rates for sending USD payments, after this afternoon's durable goods orders in the USA, which cover large household orders etc, were much worse than expected.

The Pound is up nearly a cent against the US Dollar, and even this afternoon's better consumer confidence figures did not stop the currency sliding.

Sterling is also slightly up against the Euro after Angela Merkel faced new opposition in Germany for plans to beef up the EU stability fund for any future bailouts which may be needed.

Currency News This Week 260212

Sun, 26 Feb 2012 00:00:00 GMT

This week's economic news releases, likely to affect currency exchange rates, are as follows:

Monday 27th
No major data

Tuesday 28th
1000 - Eurozone consumer confidence
1300 - German inflation (CPI)
1500 - US consumer confidence

Wednesday 29th
0030 - Australian retail sales
0855 - German unemployments
0930 - UK consumer credit & mortgage approvals
1000 - Eurozone inflation (CPI)
1300 - US GDP

Thursday 1st
0645 - Swiss GDP
1000 - Eurozone unemployment
1330 - US consumption & expenditure
1500 - US construction & manufacturing

Friday 2nd
0700 - German retail sales
1000 - Eurozone inflation (PPI)
1330 - Canadian GDP