USD/GBP Rate & Comments for 28th June 2010
USD/GBP - 1.504
Sterling had a strong week last week as tough spending cuts announced in the emergency budget eased fears amongst investors that the UK would suffer a debt crisis akin to Greece or Spain. The pound hit a 19 month high of 1.22/ £1 and held above the $1.50/ £1 level for the first time in nearly 5 weeks. A new trend emerged that clearly showed the budget helped separate the UK from the rest of Europe in the eyes of investors. Normally, when European stock markets have fallen in the last few months, the pound has followed suit against the euro. However, last week, we saw sterling hold strong in the face of faltering European markets. With little UK data out today, the focus is on the general risk trends. Many analysts feel that there is not enough positive impetus to push the pound beyond $1.50/ £1 – get in touch now to avoid missing out.
In the USA, the focus this week is on Non-Farm payroll data (released Friday), house prices, manufacturing data and spending/ income data. An improvement in May employment and hourly earnings could mean that both income and spending data shows an improvement also. In addition, overnight the People’s Bank of China set the Chinese yuan’s daily mid-point at a new post-revaluation. This revaluation has been praised by the USA as it makes US goods more competitive, however, the real motive behind the revaluation is probably to keep a lid on China’s overheating economy. Call in now for a live exchange rate.
Exchange rates change every second - call Smart Currency Exchange for a live up-to-the-minute quote. For individual requirements, visit the SmartCurrencyExchange.com website and for companies visit the SmartCurrencyBusiness.com website.
Showing posts with label debt risk. Show all posts
Showing posts with label debt risk. Show all posts
Monday, 28 June 2010
Tuesday, 22 June 2010
USD/GBP Rate & Comments for 22nd June 2010
USD/GBP - 1.474
Sterling started yesterday strongly, rising to a 5 ½ week high against the US dollar of $1.4925/ £1 in early trading, but fell in late trading as traders became anxious over the effect of today’s budget. The pound strengthened after the People’s Bank of China announced overnight on Sunday that it would proceed with reform of the exchange rate ‘Peg’ (i.e. fixed rate) between the Chinese yuan and US dollar. In addition, data showed that house prices in London rose by 2.2% over the last month. This drove risk appetite and news on the yuan is expected to have a positive effect on US manufacturing, as Chinese goods become less competitive. Despite this, the key event this week is today’s emergency budget – the first of the new Coalition government. There is some anxiety over the pace at which the budget will seek to cut the deficit, as if it is too aggressive, growth could be stifled, whereas if the cuts are too lenient the deficit will not be addressed and the markets will lose confidence. If you have any requirements over the next few weeks – call in as soon as possible, because the pound could conceivably go either way against the US dollar and euro. It all depends on how the market reacts to the announcement.
In the US, the big news yesterday was the reaction to China’s move to revalue their currency Peg against the US dollar. Despite an initial drop against the euro and sterling, many are expecting the US dollar to strengthen following the move by China. The revaluation opens the door for US goods to regain some price competition against Chinese goods, which they have lacked since 2005. This should aid the US recovery. There is a lot of volatility likely tomorrow with the UK budget data – call in now to ensure you don’t lose money.
Exchange rates change every second - call Smart Currency Exchange for a live up-to-the-minute quote. For individual requirements, visit the SmartCurrencyExchange.com website and for companies visit the SmartCurrencyBusiness.com website.
USD/GBP - 1.474
Sterling started yesterday strongly, rising to a 5 ½ week high against the US dollar of $1.4925/ £1 in early trading, but fell in late trading as traders became anxious over the effect of today’s budget. The pound strengthened after the People’s Bank of China announced overnight on Sunday that it would proceed with reform of the exchange rate ‘Peg’ (i.e. fixed rate) between the Chinese yuan and US dollar. In addition, data showed that house prices in London rose by 2.2% over the last month. This drove risk appetite and news on the yuan is expected to have a positive effect on US manufacturing, as Chinese goods become less competitive. Despite this, the key event this week is today’s emergency budget – the first of the new Coalition government. There is some anxiety over the pace at which the budget will seek to cut the deficit, as if it is too aggressive, growth could be stifled, whereas if the cuts are too lenient the deficit will not be addressed and the markets will lose confidence. If you have any requirements over the next few weeks – call in as soon as possible, because the pound could conceivably go either way against the US dollar and euro. It all depends on how the market reacts to the announcement.
In the US, the big news yesterday was the reaction to China’s move to revalue their currency Peg against the US dollar. Despite an initial drop against the euro and sterling, many are expecting the US dollar to strengthen following the move by China. The revaluation opens the door for US goods to regain some price competition against Chinese goods, which they have lacked since 2005. This should aid the US recovery. There is a lot of volatility likely tomorrow with the UK budget data – call in now to ensure you don’t lose money.
Exchange rates change every second - call Smart Currency Exchange for a live up-to-the-minute quote. For individual requirements, visit the SmartCurrencyExchange.com website and for companies visit the SmartCurrencyBusiness.com website.
Tuesday, 1 June 2010
USD/GBP Rate & Comments for 1st June 2010
USD/GBP - 1.447
Sterling had a good week last week gaining ground on greater risk appetite in the markets against the US$ and the . Following the bank holiday here in the UK on Monday we have opened up with sterling slightly up on the euro and slightly down on the US$. This week we have UK purchasing managers indices for both manufacturing and services. Both are expected to be similar to last months figures which if met would show the economy continuing to expand. We also have some housing data for mortgages and house prices. It will be interesting to see how the influence if any of the election in early May has on these figures. But we continue to be in very volatile times with exchange rates moving very quickly. That is why it is so important to get in touch now if you have an upcoming requirement.
The US$ has been the main beneficiary over the last few months given the problems in the euro zone and the UK and its safe haven status. But having said that the US has just revised its growth figures for the first quarter from 3.2% to 3.0% whereas the markets were expecting it to be increased to 3.4% which makes it clear that nowhere is going to have a smooth run out of recession. Later this week we have unemployment figures and purchasing manager’s indices for both manufacturing and services. So a busy week for economic data and as such expect volatility in the exchange rates.
Exchange rates change every second - call Smart Currency Exchange for a live up-to-the-minute quote. For individual requirements, visit the SmartCurrencyExchange.com website and for companies visit the SmartCurrencyBusiness.com website.
USD/GBP - 1.447
Sterling had a good week last week gaining ground on greater risk appetite in the markets against the US$ and the . Following the bank holiday here in the UK on Monday we have opened up with sterling slightly up on the euro and slightly down on the US$. This week we have UK purchasing managers indices for both manufacturing and services. Both are expected to be similar to last months figures which if met would show the economy continuing to expand. We also have some housing data for mortgages and house prices. It will be interesting to see how the influence if any of the election in early May has on these figures. But we continue to be in very volatile times with exchange rates moving very quickly. That is why it is so important to get in touch now if you have an upcoming requirement.
The US$ has been the main beneficiary over the last few months given the problems in the euro zone and the UK and its safe haven status. But having said that the US has just revised its growth figures for the first quarter from 3.2% to 3.0% whereas the markets were expecting it to be increased to 3.4% which makes it clear that nowhere is going to have a smooth run out of recession. Later this week we have unemployment figures and purchasing manager’s indices for both manufacturing and services. So a busy week for economic data and as such expect volatility in the exchange rates.
Exchange rates change every second - call Smart Currency Exchange for a live up-to-the-minute quote. For individual requirements, visit the SmartCurrencyExchange.com website and for companies visit the SmartCurrencyBusiness.com website.
Thursday, 27 May 2010
USD/GBP Rate & Comments for 27th May 2010
USD/GBP - 1.445
Sterling had a strong day against the euro yesterday as investors sold the single currency on concerns that Europe’s debt problems were far worse than the UK. The pound rose 1% to hit a 2 week high of 1.1808/ £1 in afternoon trading. With the UK election out of the way, the debt risk in the UK still saw the pound suffer against the US dollar but the pound is a far superior option for investors than the single currency. Expectations for growth were boosted earlier in the week when 1st Quarter GDP showed an increase on the initial estimate but mortgage data released yesterday showed that the number of new mortgage approvals fell slightly on the month. Overall though, the number of mortgages approved rose 15.5% for the year and net lending increased by £1.825bn. Out today we have sales data for the UK which is expected to come in at around the same level as last month. Get in touch now for a live price to ensure you take advantage at the right time.
In the USA, fundamental data released yesterday was strong. Durable goods orders came in a lot higher than expected and new home sales jumped to 504,000 – far more than the 425,000 that was expected. The main data out today in the US is the second estimate of 1st Quarter GDP. The general consensus is for an upward revision to 3.5% from 3.2%, but this could be more, as consumer spending has been strong over the last few months. In addition, there is initial jobless claims data that is expected to show a drop in claimants to the lowest level since August 2008. However, it is worth noting that US ‘unemployment insurance’ runs out after several months, so a drop in claimants does not necessarily mean those people are back in work. Get in touch now for a live price to avoid missing out.
Exchange rates change every second - call Smart Currency Exchange for a live up-to-the-minute quote. For individual requirements, visit the SmartCurrencyExchange.com website and for companies visit the SmartCurrencyBusiness.com website.
USD/GBP - 1.445
Sterling had a strong day against the euro yesterday as investors sold the single currency on concerns that Europe’s debt problems were far worse than the UK. The pound rose 1% to hit a 2 week high of 1.1808/ £1 in afternoon trading. With the UK election out of the way, the debt risk in the UK still saw the pound suffer against the US dollar but the pound is a far superior option for investors than the single currency. Expectations for growth were boosted earlier in the week when 1st Quarter GDP showed an increase on the initial estimate but mortgage data released yesterday showed that the number of new mortgage approvals fell slightly on the month. Overall though, the number of mortgages approved rose 15.5% for the year and net lending increased by £1.825bn. Out today we have sales data for the UK which is expected to come in at around the same level as last month. Get in touch now for a live price to ensure you take advantage at the right time.
In the USA, fundamental data released yesterday was strong. Durable goods orders came in a lot higher than expected and new home sales jumped to 504,000 – far more than the 425,000 that was expected. The main data out today in the US is the second estimate of 1st Quarter GDP. The general consensus is for an upward revision to 3.5% from 3.2%, but this could be more, as consumer spending has been strong over the last few months. In addition, there is initial jobless claims data that is expected to show a drop in claimants to the lowest level since August 2008. However, it is worth noting that US ‘unemployment insurance’ runs out after several months, so a drop in claimants does not necessarily mean those people are back in work. Get in touch now for a live price to avoid missing out.
Exchange rates change every second - call Smart Currency Exchange for a live up-to-the-minute quote. For individual requirements, visit the SmartCurrencyExchange.com website and for companies visit the SmartCurrencyBusiness.com website.
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