Pound/Dollar rates at 5 year low

Monday 13th April 2015

Pound/Dollar rates hit 5 year low

The US Dollar has been gaining more and more strength recently, and has therefore become more expensive to purchase. First thing this morning the GBP/USD rate was as low as 1.4569 which is the lowest in 5 years. It’s climbed a little during trading to 1.4645. Still a far cry from the highs of $1.72 we saw last summer! 

The reason is the US economy is performing very well, and it’s likely they will be the first major western economy to raise interest rates. Also, global uncertainty is driving investment into the ‘safe haven’ US Dollar, which also strengthens it. This is great news for anyone looking to convert Dollars to Pounds. Those needing Dollars however should note that many forecasts think the rate will continue to slide this year. 

 

 

Sterling/Euro remains supported at €1.38

The strength of the Dollar is also causing weakness in the Euro. Issues over Greece means investors are moving from Euro to Dollar, which is weakening the single currency and keeping GBP/EUR rates supported above the €1.38 level. 

I’m actually surprised the rate is holding at these levels, and I’m still of the view that as the election draws closer, Sterling will start to lose value against other currencies. Only on Friday figures showed weaker-than-expected industrial data, and the rising risk of prolonged political uncertainty after a tight British election next month is already dragging the Pound down against other currencies. Remember, the current high level is Euro weakness, not any fundamental strength in the Pound! 

If you are looking for the best exchange rates and would like a quote on your exchange, click here to send me a free no obligation enquiry. 

What could affect exchange rates this week? 

Below I’ve listed the scheduled releases for the coming week that I think may affect exchange rates. Remember that other things such as election uncertainty could also change rates at any time without warning. To discuss your currency requirement in more detail, or have a chat about which direction the exchange rate may go, click here to send a free enquiry today. 

Tuesday 14th April 2015 – Quite an important day for the UK as we have the latest inflation numbers. Recent figures show the UK headed towards deflation, which could in turn mean interest rates going down. If that’s the case, the Pound could weaken. In Europe the only data of note is Industrial Production at 10am. Later in the afternoon in the USA we see the latest Retail Sales numbers. These are a good overall indicator of economic activity and so GBP/USD rates could be affected. 

Wednesday 15th April 2015 – Nothing from the UK today, but plenty from the EU that could move GBP/EUR rates. Germany releases a host if inflation numbers at 7am, and at 12:45pm we have the latest decision from Europe in interest rates. They are unlikely to change the rate, but at 13:30pm they give a press conference, and comments made often cause volatility for the Pound/Euro rate. Elsewhere, Canada also announces interest rates, and the USA has Industrial production figures. 

Thursday 16th April 2015 – Another quiet day for the UK. The only data of note today is in Australia where we see the latest employment figures, and the USA which also releases jobs data. Staying in the USA, we also have a speech by a FED member which could affect the Dollar. 

Friday 17th April 2015 – After a quiet few days, this could be an important one for Sterling. At 09:30am we have the latest employment numbers from the UK. This can often affect the Pound so expect a volatile morning for GBP exchange rates. Europe, Canada and the USA all release inflation numbers today too, so GBP/CAD, GBP/EUR and GBP/USD could all change today. 

Do you need to convert currency at the best exchange rates? 

If you have a currency transaction to perform, would like a quote, or to simply discuss the market or anything I’ve covered above, contact me for a free no obligation consultation by clicking below. 

Click here to send a free enquiry today.

Pound/Euro back to €1.38, will Sterling go up or down?

Wednesday 8th April 2015
Since the Easter break, Pound/Euro rates have seen a very decent recovery, rising from 1.3550 to 1.3800 today, as you can see from the chart below: 

Before the Easter weekend, the Pound had come under pressure due to political uncertainty in the run up to the general election. This had pulled rates down from 1.38 to the 1.35’s. The reason it has gained and recovered these losses is due to better than expected UK economic data. 

Why has the Pound gone up against the Euro? 

This week we have seen figures that show activity in the UK's services sector grew at the fastest pace in more than 6 months. We have also seen the Confederation of British Industry (CBI) forecast UK economic of 0.7% in the three months to March which is better than it has been. We also recently saw the Office for National Statistics (ONS) revise economic growth upwards. We’ll have to wait a few more weeks however before the first official estimate of the UK's economic growth for this year. 

Will Sterling go up or down in the next few weeks? 

All in all the numbers are good, and this has given renewed optimism for the Pound. I still don’t think this will be sustained. We saw a very similar trend a week ago when rates rose to 1.38, but he gains were short lived. As you can also see form the chart above, the rate quickly dropped back 2 cents and the reasons for this remain – political uncertainty on the run up to the general election. 

In addition to election jitters, Sterling could come under pressure this week due to a statement from the Bank of England. They don’t want the Pound to be this strong against the Euro and we may see comments designed to weaken Sterling. Also watch out for Friday when the latest Industrial and Manufacturing production figures are released. The numbers are expected to show growth of 0.3% and 0.4% respectively. If the actual numbers are lower than this Sterling will fall against other currencies and vice versa. Also on Friday a GDP estimate could affect the Pound. 

Do you need to convert currency at the best exchange rates? 

If you have a currency transaction to perform, would like a quote, or to simply discuss the market or anything I’ve covered above, contact me for a free no obligation consultation by clicking below. 

Click here to send a free enquiry today.

Sterling/Euro rates near €1.41!

Tuesday 10th March 2015 
A very brief update this afternoon to say the Pound/Euro rate has risen by almost 2 cents today, pushing through the €1.40 barrier and onwards towards €1.41 – a fresh 7 year high and the best rates have been now since the end of 2007: 

The pound has been gaining all day after the European Central Bank (ECB) began its government bond buying programme earlier this week. This also after the head of the eurozone finance ministers' group called on Greece to "stop wasting time" and engage in serious talks on reform. 

I’ll post a more detailed update tomorrow afternoon, as my time today has been spent on the trading floor assisting clients with Euro purchases. We’re offering trading levels of €1.40+ today and needless to say we have been very busy indeed performing a record number of GBP/EUR trades. 

Do you need to convert currency at the best exchange rates? 

If you have a currency transaction to perform, would like a quote, or to simply discuss the market or anything I’ve covered above, contact me for a free no obligation consultation by clicking below. 

Click here to send a free enquiry. 

GBP/EUR breaks €1.27 - 2 year high. Exchange Rates Forecast 2014

Thursday 18th September 2014 
Today is the day of reckoning for Scotland, and the currency markets are going to be very susceptible to the result, whichever way it goes. Let's have a look at how Pound/Euro and Pound/Dollar rates are faring ahead of tomorrow's result:

Sterling/Euro 

We’ve seen a spike in Pound/Euro rates today, and at the time of writing GBP/EUR sits at 1.2720 - this is the highest in over 2 years. in fact if you look further back at average rates, we're within around 1 cent of the highest Pound/Euro rate in 6 years. That was back in October '08 when the credit crunch hit destroying the value of Sterling.

Part of the spike is weakness in the single currency, but mostly it is the Pound that has been gathering strength as a ‘No’ vote for Scotland is being priced into the market. 

This is the highest it’s been in well over 2 years. Today alone we have secured a record amount of Euros for clients and this is for 2 reasons. Firstly it’s the best it has been in years. Secondly, the chance of a big drop in rates if Scotland vote yes mean most clients want to fix a rate now to protect against a drop. 

Even if the vote is No, it’s hard to see the Pound gaining significantly given the high it’s already at. I think the NO vote is already priced into the market for the most part, and the uncertainty which would remain even if independence is rejected will likely hold the Pound back. 

If I needed Euros, I would be keen to fix a rate while it’s the best it’s been in years. For me, the downside risks for hanging on to see what happens tomorrow would be too great. Those selling Euros should have a Stop Loss in place to protect against the Pound gaining further. 


If you would like to discuss which way exchange rates are moving, and get a quote to see how much we can save you on your currency, click here to send a free enquiry. 

Sterling/Dollar 

Rates have climbed for this currency pair, after falling overnight. The reason it dropped was due to comments by FED chair Janet Yellen last night. She indicated interest rates will be going up at some point in the USA, and that they will have wound up their QE stimulus programme within a month. 

This strengthened the Dollar and pulled rates down as the chart above shows. However the Pound has reversed these losses due to the strengthening of the Pound today. Sterling has gained as a ‘No’ vote gets priced into the market. 

As with any currency against Sterling, the risk of a big drop should they vote Yes is huge. Get in touch today to discuss your currency requirement. I can source rates up to 5% better than banks and other financial institutions can offer, and I also have various tools and contract types than can protect you against the market moving the wrong way. 

Get in touch for a quote on your exchange 

Regardless which currency you may need to buy or sell, get in touch with me here for a quote on your exchange. I usually have no problems beating rates provided by banks or other currency brokers, and a better rate could save you thousands. 

Click here to get in touch today.

Sterling/Euro up after German Inflation figures

Tuesday 29th April 2014
For the last week exchange rates have been quite stable, without much volatility. Today however we have seen some choppy movements on the Sterling/Euro rate in particular, following data releases from the UK and Germany. Let’s have a look at how it has affected exchange rates:

     

Pound slips after growth figures lower than expected

This morning the UK’s latest GDP figures were released, showing that the UK economy grew by 0.8% in the first quarter of 2014. This is the 5th consecutive period of GDP growth - the longest positive run since the financial crisis. 

However the Pound fell on the news as the market had been expecting it to be even higher, at 0.9%. Just before the release rates rose slightly in anticipation of a good result as you can see in the chart above. You can also see the sharp drop the moment the actual number was released. 

In the currency markets, figures like this are forecast in advance and priced into exchange rates accordingly. 

Pound/Euro rates bounce back after German Inflation data 

After the UK’s figures, GBP/EUR sat around the €1.21 level. At 1pm Germany released its latest inflation numbers. Much like the UK’s release, Germany’s figures were slightly lower than expected, and this caused the Euro to weaken and become cheaper to buy. 

Germany is the EU’s largest economy so that’s why the results had quite a big impact on Pound/Euro rates, helping them to recover up to €1.2180. 

Looking for the best exchange rates? 

If you have a currency requirement, and would like to discuss what might move the exchange rate, then get in touch with me for a free chat. I can discuss what you need to do and talk over what might move the exchange rate. 

I can also provide you a quote to compare with your bank or existing currency broker - even a small difference in the rate can often save you thousands of Pounds. 

I can help you get the best exchange rates if you: need to buy property overseas, sell property and convert funds back to Sterling, monthly transfers to a Euro account, business’s buying or selling goods in foreign currencies etc.  (I trade all the worlds major currencies, not just the Euro.)

Click here to get in touch and find out more about the rates I can provide. 

Alastair Archbold

GBP/EUR, GBP/USD, and the weeks economic data

Monday 7th April 2014 
Exchange rates are relatively stable as we start the trading week. In today’s post I’ll have a quick look at where Sterling/Euro and Sterling/Dollar rates stand, and what the forecast is for the short term for whether Pound exchange rates will go up or down. As usual for a Monday, I’ll also list the week’s economic data releases that I think will affect the currency markets. 

Sterling/Euro 

In my post last week I explained that rates had shot up to just over €1.2100 after the ECB announced it discussed conducting a Quantitative Easing programme. Pound/Euro rates remain a little below the €1.21 level today, having dropped a bit through trading after one of the ECB members said that there was no need to take immediate action. 

I’m surprised the Euro didn’t weaken further, but this week we will see several speeches by ECB members. If they shed any more light on the subject and give us an idea how likely a QE programme is, Pound/Euro rates could well pick up further the more likely it seems that they are concerned about the Euro. 

I don’t think there’s much more to see in GBP/EUR getting too much higher however, due to the Bank of England not wanting the Pound to gain much more due to the effect it would have on our exports and in turn, the UK’s economic recovery. 

Looking for best GBP/EUR rates? Make a free enquiry. 

Sterling/Dollar 

Looking at other currencies, GBP/USD rates have crept up today steadily throughout the day after jobs numbers from the states disappointed on Friday. This has caused the Dollar to weaken and we’re now back above the $1.66 level. 

These gains could be short lived though – if the ECB members comments this week do weaken the Euro, then an inverse effect of that would be a strengthening US Dollar and lower GBP/USD rates. This is because the USD is a safe haven currency, so worries in the Eurozone would cause investors to move back to the safety of the Dollar, strengthen it and making it cheaper to buy. 

Looking for the best GBP/USD rates? Make a free enquiry. 

This week’s economic data releases. 

Monday 7th April 2014 - It’s been fairly quiet on the data front today, with the only noteworthy release being Industrial Production data from Germany, Europe’s largest economy. The numbers were a little better than expected, giving the Euro a little spike and pushing GBP/EUR rates lower, but not by much. 

Tuesday 8th April 2014 - At 09:30am we have the latest UK Industrial and Manufacturing production figures. These can often affect the value of the Pound. We will also see the latest NIESR GDP estimate released at 3pm. The last result showed growth of 0.8%, and if we see a higher number today, Sterling could gain. 

Wednesday 9th April 2014 - Another important UK release today, Trade Balance figures at 09:30am. The market is already expecting a negative number, but if the number is even worse than expected then Sterling could take a hit. Germany also releases its Trade Balance figures today. 

Further afield, the USA will release the minutes of their recent FOMC meeting at 7pm. I think that the US will keep tapering its QE programme this year, and if the minutes support this then expect GBP/USD rates to dip away as the greenback gains strength. 

Thursday 10th April 2014-  The Bank of England announces today if it will change its interest rates and QE programme – I expect rates to be left at 0.5% so don’t think it will affect exchange rates. 

Elsewhere, Australia releases a raft of unemployment data that could affect GBP/AUD rates. The US also have jobless figures, so Dollar rates could also swing today. 

Friday 11th April 2014 - After a very busy week for UK data, we end on a quieter note with nothing of interest from the UK. Germany has some inflation figures, as does the United States, along with a consumer sentiment survey, released at lunchtime. 

Find out more about the rates and service I offer 

If you have a currency transaction to perform and would like to find out how I can help you, get in touch in the following ways: 

Click here to send a free enquiry 
Call me directly: +44 (0) 1442 892 066 

Ask for Alastair Archbold, and quote ref ‘FERF’

What could affect exchange rates this week?

Monday 3rd March 2014 
It’s been relatively quiet since my last post, and today hasn’t seen much economic data that has affected exchange rates. We have not seen the Pound make any further gains, and we currently have GBP/EUR rates around the 1.2140 mark, and GBP/USD rates a little above $1.67. 

In today’s post, I will have a look at upcoming events this week that I think will have an impact on rates, including economic data releases and the current instability in Ukraine. 

Instability in Ukraine to affect exchange rates 

There are various things that affect exchange rates. Economic data is the main one, and in a moment I’ll analyse what we have due to be released this week that I think will move FX rates. 

Other things that can affect currency rates are natural disasters like floods and droughts. Political events like elections and new policies. Finally terrorism/instability and acts of war can also have an impact. 

Dominating the headlines at the moment are events in Ukraine. How could this affect exchange rates? Let’s start with the obvious factor – how has it affected the Russian Rouble? I can’t actually trade the rouble, but it’s a good place to start to explain the effects of the current situation. 

Russia's rouble has fallen to a fresh all-time low against both the dollar and the euro after the political turmoil in Ukraine intensified. So the instability there has weakened their currency. 

Further afield, the unstable situation is likely to affect all major currencies. Due to the uncertainty it’s creating, it will likely mean the global investors seek safety. This may mean that perceived riskier currencies can weaken, and safe haven currencies can strengthen. 

Safe haven currencies like the US Dollar and Swiss France therefore could gain strength and become more expensive to buy. Risky currencies like AUD, NZD, ZAR for example could weaken and become cheaper to buy. 

Closer to home, we could see the Pound weaken on the back of the instability, as investors sell it to move to the safety of the US Dollar while geo political negotiations take place. 

If you need to buy or sell currency, then you can contact me to discuss your options for free, without obligating you in any way. 

Click here to discuss your currency requirement with me for free. 

This weeks scheduled economic data releases that could affect rates 

Monday 3rd March 2014 

It’s been relatively quiet today we did have some slightly worse than expected UK data this morning. This afternoon we say some better than expected US data that temporarily caused GBP/USD rates to drop away. 

Tuesday 4th March 2014 

Again a quiet day in terms of data releases. The only UK data of note is construction data released at 09:30am. Most information today is from Australia – an interest rate decision followed by a statement from the RBA. 

Wednesday 5th March 2014 

There is a release of interest from the UK today, an inflation report at 10am that could dictate future interest rate movements and therefore could affect Sterling exchange rates. Elsewhere, the Eurozone has a raft of releases today – Inflation data, Retail Sales and Gross Domestic Product. All of these will give a good idea how the EU economy is preforming and if the numbers are worse than expected we may see the Euro weaken in value. 

Elsewhere, we have an interest rate decision from Canada followed by a statement from the Bank of Canada. In the United States we see the latest mortgage approval numbers and employment figures. 

Thursday 6th March 2014 

It’s the first Thursday in the month, so we will see the Bank of England and European Central Bank announce their decision on interest rates at 12:00pm and 12:45pm respectively. I expect no chance from either; however comments that follow the decision could have an impact on exchange rates. If there are hints of a rate cut in the EU, Pound/Euro rates may rise. If the BoE however hint that a rate change in the UK is a long way off, expect the Pound to fall in value. 

Elsewhere today we have Trade Balance and Retail Sales data from Australia, and Jobless Claims from the United States. All in all a busy day so I do expect some volatility in FX rates today. 

Friday 7th March 2014 

We end the week across the pond – Canada releases unemployment data, and the USA has its latest Trade Balance figures, along with Non-Farm Payrolls at 13:30pm. This is usually quite different to the forecast number, so expect a choppy day for GBP/USD rates today. There is nothing of note from the UK or EU. 

Would you like to achieve the best exchange rates? 

I can offer exchange rates very close to the ‘mid-market’ rate you see published on this site, which is up to 5% better than your bank can offer you. In addition to exceptional rates of exchange, I can provide a consultative service which allows you to discuss your requirement with me over the phone. In this way you can discover all the options available to you such as Forward contracts and Stop Loss orders, and make an informed choice with regards to when to fix your exchange rate. 

Getting in touch costs you nothing, doesn’t obligate you in any way, and the savings you make could be very considerable indeed. 

Click here to make a free enquiry with me today. 

Alastair Archbold

GBP/EUR rises to €1.22 after BoE Inflation report

Wednesday 12th February 2014 
Sterling has gained significant strength today following the Bank of England’s inflation report, and the press conference by Governor Mark Carney that followed. In today’s post I will look at exactly what he said, the effect it had on Sterling exchange rates, and what may happen to currency rates in the coming weeks. 

Pound gains strength on Mark Carney’s BoE speech. 

This morning at 10.30am the Bank of England published its quarterly inflation report, and this was followed by a speech from the BoE governor Mark Carney. You can read a full report on his comments here on the BBC website.

In effect the speech caused the Pound to rise against other currencies by around 1%, pushing GBP/EUR rates to €1.22 and GBP/USD up to $1.6550 – excellent buying levels for both currencies. 

The main reason for the gain was an increase in the UK’s growth forecasts. The Bank revised up its projection for UK growth to 3.4% this year, from a previous projection of 2.8%. This gave Sterling a nice boost and caused exchange rates to rise. You can see from the chart below the effect it has had so far on Sterling/Euro:

So is the Pound likely to go up or down in the coming weeks? 

The Pound will likely remain strong at current levels, so the direction of exchange rates, GBP/EUR in particular, will now rest on what happens in the Eurozone. European growth is quite poor, and there is the chance they may have to cut rates. This could cause the rate to rise further. 

This afternoon at 15:30pm there will be a speech by the ECB president Mario Draghi. If he hints at a rate cut, Pound/Euro may rise higher still. If however he hints rates will remain low for the time being, we could see the spike today retract back to the €1.20’s. 

There is also the persistent strength of sterling which adds to the BoE’s challenges. If the Pound gets much stronger and the Eurozone continues to face problems, it’s going to affect our exports which means any further gains could be limited as the BoE moves to keep in check any significant rise in the Pound. 

Carney also said that interest rates in the UK will remain low for some time to come, adding that while he wouldn’t be a pessimist about the ability to return to (normal) rates, it is well beyond the forecast horizon of the Bank of England. 

What can you do if you need to buy or sell Euros? 

Euro buyers should look at today’s gains and consider that we are less than 1 cent away from a 13 month high. We’ve got to these levels several times in the last few months, and each and every time the rate drops back away within several days. You may wish to fix a rate now to take advantage of the gains. You can do so even if you don’t need your Euros for up to 2 years, by lodging 10% of the total you want to convert, and I can guarantee your rate on the full amount. 

If you are selling Euros and moving them back to Sterling, then today’s events have pushed rates the wrong way for you. I don’t expect the mid-market level to drop below €1.20, and bad news for the Eurozone would cause rates to move further against you. A stop loss order is a good strategy to employ in the current conditions. 

Get in touch to discuss your options. 

How to go about getting the best rates, at the best time 

The first step is to get in touch with me to take advantage of a free consultation over the telephone. I can discuss your particular requirements and timescales, and then let you know the different options you can consider, such as Stop Loss Orders and Forward contracts. You can then make an informed decision on when to fix a rate. 

When you decide to do so, I can provide you a quote to compare with your bank. The rates I can source are up to 5% better than banks usually offer, so you can save a considerable sum by taking advantage of my services. 

Click here to send me a free no obligation enquiry now. 

Alastair Archbold.

How has FED tapering affected exchange rates?

Thursday 30th January 2014 
There has been some key volatility in exchange rates this week, being mainly driven by events in the USA. In today’s report I’m going to explain how the FED tapering has pushed some exchange rates higher such as the Pound against emerging economies such as Turkey, New Zealand & South Africa, and some exchange rates lower for example Pound/US Dollar. 

FED cut stimulus as expected 

Last night the US Federal Reserve announced a $10bn reduction in its monthly bond purchases from $75bn to $65bn. This is the second month in a row they have done so. 

The central bank had been buying bonds in an effort to keep interest rates low and stimulate growth, and now they are winding that in is a sign of positivity for the US economy. 

So how has this affected exchange rates? 

Pound/Dollar rates have fallen. This is because the news is good for the USA, and so the Dollar has strengthened and become more expensive to buy. It’s dropped from 1.66 to 1.65, not a huge drop because the move was expected. 

Of more interest was the effect on currencies in emerging markets. Investors have been selling riskier higher yielding currencies like the South African Rand (ZAR), New Zealand Dollar (NZD), Australian Dollar (AUD) and Turkish Lira (TRY). The reason is there are fears their economies may now suffer as the reduction in liquidity from the FED takes effect. Read more about this in detail here on the Telegraph site.

This means these currencies are very cheap to buy, and we’re seeing some of the highest exchange rates for these currencies for some time. Some of the countries have started to raise their interest rates to try and stop the capital flow out of the country as outlined in the link to the Telegraph above. 

Some analysts said that while the Fed may not have explicitly mentioned emerging markets in its statement, it would be an oversight to think the central bank is not keeping a close eye on the global economy. "The FOMC will want to observe the domestic and international market reaction to today's tapering decision," said Jefferies chief US economist Ward McCarthy. 

There are some great exchange rates available for AUD, NZD, ZAR, TRY among others. If you need to purchase these currencies in the short to medium term, you can get in touch with me to find out more about the exchange rates I can offer by clicking here. 

Pound/Euro remains stable between €1.21 & €1.22. 

Closer to home, we have seen the GBP/EUR rate fluctuate a little, but today has risen from €1.21 to €1.2160. There was some poor data from Germany that has weakened the Euro a little this morning. 

I don’t expect any significant gains in the GBP/EUR rate in the short term, mainly because the Bank of England has recently made it clear interest rates will not be rising any time soon. 

The rate is still very close to the best in 12 months, so if you need to buy Euros and want to take advantage of the current levels, click here to send me a free no obligation enquiry.

Will the Pound keep falling against the Euro?

Monday 4th February 2013

Good morning. Well readers, I'm sorry to say I do not bear good news for anyone needing to purchase Euros in the near future. Rates last week continued their decline falling significantly. A month ago rates were at 1.23 - on Friday afternoon they were as low as 1.1475 - this was the biggest one day fall for the Pound since 2008.

Rates have recovered slightly this morning, back to €1.1550. Today I'll review why rates are falling, and what effect data this week could have on rates.

In this week’s Report:

• Pound/Euro continues to fall to 14 month low
• US GDP figures disappoint, but GBP/USD still low
• UK decision on QE and the latest GDP estimate this week
• Round up of the week’s other data that may affect rates

Sterling vs. Euro; 

Sterling’s fortunes remained unchanged last week as it continued to fall against the single currency. Rates fell a further 2.0% over the course of the week, which now means we have seen a 7% decline since the turn of the year and at its lowest point the GBP/EUR cross hit 1.1470, the lowest we have seen the cross since October 2011. In this week’s euro report we will take a look at what caused the rates to fall and what is around the corner for the pound. 

Although there was some positive data releases out of the euro-zone last week the recent drop in rates is still mainly down to sterling weakness. In recent weeks the UK has been under the microscope and with a black cloud hanging over the UK economy it is difficult to see where any positive moves may come from. 

Ever since the Initial GDP estimate was released at the start of January sterling has been in free fall against the single currency. Even with poor French and German retail sales figures released last week, which came in much lower than forecast, the pound could not recover any of its recent losses. 

Do you need to buy Euros? Send an enquiry and find out your options.

Bank of England meet this week; more QE on the cards?

This week will see all eyes turn back to the Bank of England; policymakers will meet to discuss interest rates and quantitative easing for the first time since the official GDP figures (released on the 25th Jan) confirmed the UK economy contracted in the final quarter of 2012. 

In their last meeting policymakers voted 8-1 in favour of not adding to their existing QE programme but that could all change this week. If the BoE opt for another round of QE it leaves the door open for rates to fall even further. 

Further important figures for the UK this week

This week also sees the release of the GDP Estimate from the National Institute of Economic and Social Research (NIESR) which is an estimate of growth over the last three months (this will report will give us the first GDP estimate for Jan 2013), the report is seen as highly reliable and has the potential to influence the UK monetary policy. A negative reading could have severe consequences for the pound and will push us ever closer to the dreaded tripe dip recession. 

Let's put this in perspective

With no signs of improvement it is more important than ever to have a good currency broker on your side, and to know your options. To put this year’s move into perspective, Purchasing €250,000.00 now compared to a month ago will cost you a staggering £15,000.00 more - that's just due to the decline in Sterling's value this year. It also highlights how important timing is when it comes to move your money. 

With the seemingly perpetual decline in the GBP/EUR rate and no signs of it slowing down, now is the time to take stock of your currency requirements and consider your options. Get in touch with me today and take the time for a free consultation on what is available to you. 

Don’t simply watch the decline and hope things will move your way. Take control of your position now by sending me a free enquiry now. 

When you contact us, quote the reference 'AJABLOG'

Weekly Economic Data that may affect exchange rates 

Monday – The UK releases its latest House Price Data today. In the Eurozone we have Inflation data and a measure of investor confidence. The only other data of note are some Factory Order figures from the United States. 

Tuesday – Lots of measures of inflation are released today for the UK, Spain, Italy, France and Germany. Also in the Eurozone we see the latest Retail Sales figures, which are a good barometer of overall economic activity. Fairly quiet stateside today with Manufacturing PMI the only noteworthy release. 

Wednesday – Nothing of note for the UK today, and the Eurozone is also very quiet with German Factory Orders the only release of note. Other than that, we have employment data from New Zealand that could affect the GBP/NZD rate. 

Thursday – As usual today is the busiest day of the week. We’ll start in the UK: Bank of England decision on Interest Rates and Quantitative Easing, the latest GDP estimate, Trade Balance Numbers, Industrial Production and Manufacturing Production. Eurozone: European Council Meeting, French Trade Balance, German Industrial Production and some EU growth forecasts. We also see the ECB’s decision on interest rates. So much today that will affect GBP/EUR rates. 

Friday – After yesterday’s flurry of UK data, today is very quiet. Nothing from the UK, some inflation and Trade balance figures from Germany, and we round of the week with Trade Balance numbers from the United States. 

 Getting the best exchange rates 

You want the best exchange rates, of course you do. That's why you're reading this blog to try and gauge your timing. Take the next step and send us a free enquiry and have a consultation on all the options available to you. 

It's free, it doesn't obligate you, and you may be surprised how much you can save by using us to get exchange rates that are up to 5% better than offered by banks. Click below to send your free enquiry now, and get a response the same day.  

Click here to send me a free enquiry