Showing posts with label strong sterling. Show all posts
Showing posts with label strong sterling. Show all posts

Friday, 3 September 2010

USD/GBP Rate & Comments for 3rd September 2010

USD/GBP - 1.541

Sterling fell against the euro and US dollar yesterday as weaker than forecast housing and construction data added to concerns that the UK recovery may be faltering. House price data showed that house prices fell by 0.9% last month against an expectation of a 0.3% drop. Construction PMI data also came in much worse than expected. This added to the view of many analysts and investors that the recovery that the UK has seen over the first half of the year is not sustainable and the UK will follow the USA in faltering after an initial period of recovery. After a period of weak data, there are also concerns that the new austerity measures will impact on UK growth. After briefly recovering against the US dollar on Wednesday, a German bank was responsible for selling large quantities of sterling which saw sterling fall against the US dollar and drop to a 3 week low against the euro. Ensure you don’t miss out if sterling drops any further by speaking to a trader today.

In the USA, unemployment claims fell marginally from last week coming in at 472,000 – a 6,000 drop from last time. Pending home sales data also showed a surprising jump showing 5.2% more than last month against an expectation of a decline. All eyes are on today’s Non-Farm payroll data. After a shock 131,000 decline in July, the general consensus is for another 100,000 drop in the level of employment this month. The employment rate is also released at the same time. Both of these figures have a market moving effect so get in touch sooner rather than later to take advantage of the volatility before and after the release.

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.

Friday, 27 August 2010

USD/GBP Rate & Comments for 27th August 2010

USD/GBP - 1.552

Sterling benefitted from improved risk sentiment as gains in stock markets gave investors the confidence to seek higher returns elsewhere. Sterling reached $1.5545/£1 against the US dollar as the FTSE 100 gained 1% through the day. Today sees the release of GDP data in the UK and a surprise to the upside could benefit Sterling. Get in touch now to speak to our traders so you can plan ahead accordingly.

The US dollar continues to move with investor risk appetite and today the focus will be on GDP data as well as the Federal Reserve Chairman Ben Bernanke’s speech at the central banker summit in Jackson Hole.

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, 26 August 2010

USD/GBP Rate & Comments for 26th August 2010

USD/GBP - 1.553

Sterling had a fairly quiet day yesterday and remains range bound against the euro and US dollar. With trading volumes still low due to the holiday season any negative surprises could hit confidence in sterling and lead to larger movements than normal. Today sees the release of the CBI Distributive Trade Survey which gives an indication of how retailing activity has faired in August. Get in touch now to speak to our traders so you can plan ahead accordingly.

The US dollar continues to benefit against the euro and sterling as investors pile into safe haven assets due to the uncertainty surrounding the future for the global economy. Today is a relatively quiet day for the US dollar so ensure you are taking advantage of any movements in your favour by speaking to a trader today.

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.

Monday, 23 August 2010

USD/GBP Rate & Comments for 23rd August 2010

USD/GBP - 1.558

Last week was a strong one for sterling against the euro and this trend has continued this morning as it is trading at 1.2260/£1. During this past week, the Bank of England minutes for the month of August showed that the decision to keep interest rates unchanged was not unanimous for a third successive month as Andrew Sentance was once again the lone dissenter, calling for an increase of 25 basis points to 0.75 percent. Sterling was initially well supported after the Bank of England minutes as there was no talk about a further bout of quantitative easing. For this upcoming week broader risk trends will dictate sterling price action as sterling faces a light economic calendar. Call in now for a live exchange rate.

The US dollar rallied last week due to poor US data and losses on equity markets around the globe. The number of new claims for unemployment benefits unexpectedly jumped to 500,000. In addition, a key measure of manufacturing production showed a further than expected decline. As a result of this poor data, there are yet again concerns over the state of the US recovery and as such – the global recovery as a whole. With a stalling housing market and poor economic data expect this week’s trading to revolve around risk aversion as investors look to avoid unnecessary risks to their investments. There is little data out today – ensure you are taking advantage of the best prices by speaking to a trader today.

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, 12 August 2010

USD/GBP Rate & Comments for 12th August 2010

USD/GBP - 1.569

Sterling dropped by nearly 1% against the US dollar yesterday after the Bank of England’s quarterly inflation report said that inflation would drop below the 2% target level in the next 2 years. In addition the Bank left the door wide open for further emergency funding or ‘Quantitative Easing’. The Bank also slashed growth forecasts on the grounds that there is significant uncertainty ahead for the UK, European and US economies. With markets pricing in increased inflation following next year’s VAT hike to 20%, a downward revision came as a bit of shock to many investors and set the pound on track for the biggest daily drop against the US dollar since the election. The economic prospects for the UK were described as “highly uncertain” and as such further emergency funding could be used if needed. There is hardly any data out today, and as such expect the pound to underperform against the US dollar as a result of continued poor sentiment. Get in touch now for a live exchange rate.

In the USA, the main news was that the Federal Reserve announced that they will add additional emergency funding into the US economy to counter the flagging economy. In addition, poor data added to the US dollar’s problems as the trade deficit widened by nearly $8bn. Out tomorrow, there is further data on Unemployment claims. Call in now for a live exchange rate to ensure you don’t miss 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.

Monday, 9 August 2010

USD/GBP Rate & Comments for 9th August 2010

USD/GBP - 1.594

Last week was a strong one for sterling – especially against the US dollar where the pound finished up 1.74% on the week. We saw sterling hit a 6 month high of $1.5999/ £1 against the US dollar on Friday after poor US employment data showed a worse than expected decline in July. As expected, last week saw the Bank of England Monetary Policy Committee keep interest rates and the £200bn asset purchase facility on hold. This week sees the publication of the Bank of England’s inflation report on Wednesday, which should give some idea of what the bank is likely to do with monetary policy over the next few months. Many are expecting an upward revision to the interest rate forecast, but growth expectations following the new government’s spending cuts are likely to be key. Also out on Wednesday is unemployment claimant count data. Call in now for a live exchange rate.

In the USA, concerns over the US recovery were compounded on Friday after July’s Non-Farm Payroll figures showed a drop of 131,000 jobs on the month against an expected drop of 63,000. In addition, June’s figures were revised downwards by almost 100,000. This was clearly a disappointment for the markets – especially with the US interest rate decision tomorrow, and the poor figures fuelled speculation that the Federal Reserve will take further action to stimulate the economy. There is little other data out today – ensure you are taking advantage of the best prices by speaking to a trader today.

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.

Friday, 6 August 2010

USD/GBP Rate & Comments for 6th August 2010

USD/GBP - 1.587

It has been a strong week for sterling – especially against the US dollar. We saw sterling hit a 6 month high of $1.5968/ £1 against the US dollar earlier in the week after a run of strong banking earnings from HSBC, Lloyds TSB, Barclays and RBS. The return to profit from UK banks saw the FTSE 100 surge as investors felt that the major risk to the UK economy had now passed. This in turn saw demand for the pound rise. Better than expected manufacturing data helped increase demand for sterling, but construction data was worse than expected highlighting that there are still areas for concern. Sterling is likely to struggle to break through $1.60/£1 without significant data giving it a reason to move. The Bank of England Monetary Policy Committee kept interest rates and quantitative easing on hold as was widely expected. Out later today there is manufacturing data for the UK – call in now for a live exchange rate.

In the USA, investors have been concerned over the state of the US recovery, which has lead to the US dollar’s decline this week. Federal Reserve Chairman Ben Bernanke opened the door for further emergency funding stimulus this week. Speaking to the Senate, Bernanke said that he would pump further money into the economy if it was needed. Today sees the release of the ‘Non-Farm’ Payroll data – essentially a measure of employment that excludes seasonal workers, as they can cause spikes in the figures. Pre-cursors this week have been positive, with the claimant count dropping yesterday. However, the Non-Farm Payroll has potential to move the markets when it is released later this afternoon. Many clients have been taking advantage of better GBP/ USD rates – ensure you don’t miss out and speak to us now.

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, 5 August 2010

USD/GBP Rate & Comments for 5th August 2010

USD/GBP - 1.583

Sterling slipped off Tuesday’s highs as weaker than expected data on the UK services sector highlighted the possibility that the UK economy may struggle to match the better than expected growth posted in the first half of the year. The figure showed that the services sector was still growing, but not at the rate that had been expected. As a result, sterling fell off from the $1.5968/£1 level seen on Tuesday and is now trading around the $1.58/£1 level. House price data helped sterling, showing prices rose by 0.6% and strong earnings data from Lloyds TSB also helped keep the pound afloat. So far today, Barclays has released strong earnings figures, but a drop in Investment Banking profits has concerned investors. Out later today, there is the Bank of England’s interest rate decision for the month – widely expected to remain on hold. In other news, the Chinese government investment fund is rumoured to have sold $558m worth of shares, equating to £351.4m – the exact amount of Liverpool FC’s club debt, sparking rumours that the Chinese government will announce a takeover. Call in now for live exchange rates (and up to date progress on the Liverpool takeover story).

In the USA, data released yesterday was positive. The ADP non-farm payroll (an important precursor to the key government figures released tomorrow) showed that the US economy added 42,000 jobs last month. Purchasing manager data came in better than expected. Today, there is important unemployment data on the number of claims made for unemployment benefits. Get in touch now for a live price, as Non-Farm payroll is released tomorrow and this can cause volatility.

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.

Wednesday, 30 June 2010

USD/GBP Rate & Comments for 30th June 2010

USD/GBP - 1.503

Sterling hit a 19 month high against the euro yesterday as investors deserted the euro ahead of bank repayments to the European Central Bank. The pound hit 1.2380 as a key deadline looms on Thursday for the repayment of loans made to banks in the Euro zone. Sterling was also supported after the launch of a 30 year gilt (UK government bond) was received well by financial markets. Lending data released yesterday showed that net lending to individuals had increased to £1.5bn but final mortgage approvals fell slightly. Today, we have seen house price data show prices rise by a mediocre 0.1% month on month against an expectation of 0.3%. Despite the wave of positivity that has followed the budget, there are still several issues that need addressing in the UK, and these figures are showing that there is potential for another housing slump. Call in now to avoid missing out on the best rates.

In the USA, with a fairly quiet week so far on the economic calendar, the big news was that consumer confidence fell on the month. A lot of data in the US has suggested that the US recovery is stalling somewhat so a decline in confidence did not come as too much of a surprise. Out later today, there is ADP Non-Farm employment change – the precursor to the main Non-Farm Payroll data and a figure that gives a good indicator of Friday’s figure. Call in now for a live exchange rate and to ensure that you don’t miss out on the best price.

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, 29 June 2010

USD/GBP Rate & Comments for 29th June 2010

USD/GBP - 1.505

Sterling had a strong day yesterday, climbing to a 1 ½ year high against the euro and a 7 week high against the US dollar. The pound jumped to 1.2250/ £1 and $1.5104/ £1 as the UK currency continued to benefit from last week’s tight emergency budget. Investors speculated that the Euro zone debt problems would leave the region much weaker than the UK after the new coalition’s tight budget was received well by the financial markets. Many analysts see this as the budget that whips the economy into shape. However, gains against the US dollar have been muted, as many analysts feel that last week’s post-budget gains went too far. Another boost for the pound came as everyone’s favourite Bank of England member Andrew Sentence stated that the latest budget would not remove the need for interest rate hikes in the coming months. Out later today, there is monthly lending data and also data on mortgage approvals. Even though the markets have been moving up, there is nothing to stop the pound dropping – call in now to ensure that you secure the best rate.

In the USA, inflation data for consumer purchases came in slightly better than expected at 0.2% but data on personal income showed a drop of 0.1% on the month. Out later today, consumer confidence data is released that some are expecting to show a slight decline. Get in touch and speak to a trader to ensure that you don’t lose out on strong 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.

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Disclaimer
Exchange rates can move very quickly. The above rates are valid at a moment in time. We have no crystal ball and we recommend that if an exchange rate works for your budget then don’t wait for an even better exchange rate - Murphy’s Law says the rate will go against you and cause you maximum pain! Suggestions should not be taken as advice or fact.

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