Crucial day for exchange rates: Euro, USD, AUD

Friday 9th December 2011
Good morning. It was a very choppy day indeed in the currency markets yesterday, with an interest rate cut in the Eurozone and negative comments by the ECB president weakening the Euro and strengthening safe haven currencies. We saw Sterling/Euro rates gain however Sterling/US Dollar rates dropped significantly, as the charts below show:

~Currency movements yesterday~











Bank of England leave rates and QE on hold

Yesterday the Bank of England's (BoE) Monetary Policy Committee (MPC) voted to keep interest rates on hold at 0.5%, and announced no change to its Quantitative Easing (QE) programme. There was little reaction in the currency markets to the rate decision given many investors had already positioned for it to be unchanged. As the decisions were as predicted, there was no real change for the Pound, however there probably will be more QE in the coming months, putting Sterling at risk.

"There will be more asset purchases at some point next year, the UK economy is definitely fragile and needs easing," said Ankita Dudani, G10 currency strategist at RBS.

QE is seen as negative for sterling because it involves flooding the market with pounds and reducing demand, thus lowering exchange rates.

European Central Bank (ECB) cut interest rates

The ECB yesterday decided to cut interest rates down to 1%. This was widely expected, and there was little effect on the markets, and in fact the Euro gained a little strength after the decision. This was not to last however, as the ECB presient Mario Draghi ruled out any substantial aid for any ailing and indebted eurozone states, and this had quite an impact on exchange rates. Mr Draghi confirmed that the decision was not made unanimously.

ECB President's comments significantly weaken the Euro, strengthen the US Dollar

There had been speculation amongst analysts that the ECB may be preparing to bail out Italy, however Mr Draghi ruled this out during the post interest rate decision press conference: "We have a treaty that says no monetary financing to governments."

The euro weakened significantly as soon as he made the comments, and fell more than a cent against the dollar, while Sterling/Euro rates rose on the news. Looking at the charts above, you can clearly see the effect of his comments around 1pm. Sterling/Euro rose as the single currency weakened, and this also drove investors to the safe haven US Dollar. When there is uncertainty, investors buy the US Dollar, and this in turn strengthens it becoming more expensive to purchase. The charts reflect this and this also explains why GBP/EUR rose while GBP/USD fell.

EU summit ends today

The moves from the ECB yesterday come ahead of a "do-or-die" Brussels summit of European Union heads to hammer out a deal on how to tackle the eurozone debt crisis, including a potential new treaty. The 2 day EU summit ending is expected to agree tough new rules and automatic fines to ensure that eurozone governments cut their borrowing to below 3% of their GDP.

There is a very good and detailed article here on the BBC website that explains the ins and outs of the summit.

So what effect will the EU summit have on exchange rates?

The short answer is nobody knows. If the summit agrees on measures that the markets think will put an end to speculation on the future of the Euro, then we could see the Euro strengthen and GBP/EUR rates falling. If however there is no consensus reached, this could leave the markets wondering what will happen with countries like Greece and Italy.

If Greece were to default and exit the eurozone the consequences could be dire; a run on Greek banks, contagion spreading to other eurozone banks and Greeks facing even worse hardship than now, with the cost of imports rocketing. The priority is to reassure investors enough to halt the rise in eurozone bond yields. The leaders believe they can do that, so long as heavily indebted countries like Greece stick with deep cuts in spending and other austerity measures.

With regards to exchange rates, tomorrows developments will likely have an effect one way or the other. Put simply, if problems are solved, GBP/EUR could fall and GBP/USD could rise. If there is continued uncertainty, GBP/EUR could remain supported and GBP/USD could fall further.

What you should do to ensure you get the best exchange rates

You've already taken the first step by finding my blog and doing a little research on what may happen with exchange rates. I have worked in the Foreign Exchange markets for 10 years, and have a detailed knowledge of the currency markets. I also work for one of the UK's leading FSA registered foreign exchange brokerages, and the rates we can achieve for our clients are up to 5% better than banks and other financial institutions.

So, take the second step to making the most of your currency:

Click here to send us a free enquiry.

There is no cost or obligation involved, and you can take advantage of a free consultation on your particular requirements, helping you to make an informed decision on when to buy. As long as you are looking to convert £5000 or more, and can have an account for us to wire your currency to, we can help. Get in touch today.

Sterling Euro rates surge on renewed EU concerns

Thursday 8th December 2011
Good morning. So why did the exchange rates go up so suddenly yesterday? There was a significant increase in Sterling exchange rates, with Sterling/Euro rising by over 1% before falling back away slightly. The Euro was knocked by comments from a German government official which tempered optimism over a comprehensive solution to the euro zone's debt crisis at this week's EU summit. This weakened the Euro significantly, and also strengthened riskier currencies such as Sterling.

The below charts show how the Pound fared against the Euro and US Dollar yesterday, showing the significant jump in rates after the comments:











Pound/Euro rates gain significantly on EU summit concerns

The current exchange rate movements are being driven by swings in sentiment ahead of the EU summit which begins this evening, with EU leaders trying to agree on a solution to the debt crisis that has been affecting exchange rates for some time now.

The comments yesterday cast doubt whether a solution will be found, and it shows that Germany is increasingly pessimistic about the chances of a deal to solve the euro zone debt crisis at the summit this week. The official said that because some governments don't seem to grasp the gravity of the situation, a solution is unlikely to be found.

This caused weakness in the single currency, and Sterling exchange rates gained by over 1% - a big gain in just one day. To put this into perspective, buying €200k at yesterdays high compared to yesterdays low would save you £2000.00.

"For sterling it's all about the headlines coming out regarding the EU summit at the moment which are proving very difficult to trade," said Kathleen Brooks, research director at FOREX.com.

Sterlings gains are despite continuing concerns over the UK economy

British industrial output fell more than expected and at its fastest pace in six months in October, according to data released yesterday. This has increased concerns that the economy may drop back into recession after a run of weak economic data.

"October's official UK industrial production figures are even weaker than we or the consensus had expected and suggest that the risk that the overall economy re-enters recession in the fourth quarter remains high," said Samuel Tombs, economist at Capital Economics.

So as has been the case for some time, the Pounds value is being driven by events in the Eurozone. With a solution to the crisis now seeming unlikely, riskier currencies such as Sterling are benefiting as investors do not want to hold funds in Euros, and the demand for the Pound is the reason for the increase in exchange rates.

Today's Data

Earlier in the week we saw interest rate decisions for New Zealand, Canada and Australia – today is the turn of the UK and EU. They will announce any change in interest rates, and whether they will pursue any Quantitative Easing. It could be a volatile day for GBP/EUR rates. Later in the day, the USA released various jobless and employment numbers.

Summary

The gains seen yesterday have pushed GBP/EUR rates back to a near 9 month high. This has happened several times in the last few months, and each time it doesn't last at these levels for very long, as any negative data regarding the UK economy can quickly pull rates back down again.

If you need to buy Euros, consider taking advantage of the spike while it is here. We have various types of currency contract that let you fix the current rate, even if it will be some time before you need your currency.

Contact me today by clicking here, and take advantage of a free consultation on the options available to help you achieve the best exchange rates.

If you need to buy or sell foreign currency, click below now to send us an enquiry for free. Our exhange rates are up to 5% better than offered by banks. Take the first step to making the most of your currency now.

Pound Sterling Forecast vs Euro 2012

Wednesday 7th December 2011
Good morning. It was a bit of a mixed day in the currency markets yesterday. Initially Sterling rose against both the Euro and US Dollar as Standard & Poor's warned about a mass downgrade if EU leaders fail to act decisively. However good EU data and poor UK data reversed this trend, and Sterling exchange rates slipped throughout the afternoon. After the rate/chart snapshot, today we'll look in detail at developments regarding the EU debt crisis, and what the future may hold for GBP/EUR rates.











• GBP/EUR 1.1616
• GBP/USD 1.5620
• GBP/AUD 1.5176
• GBP/NZD 1.9967
• GBP/CHF 1.4417
• GBP/CAD 1.5741
• GBP/ZAR 12.432
• GBP/JPY 121.27
• GBP/DKK 8.6335
• GBP/NOK 8.9512
• EUR/USD 1.3443

Standard and Poor's in EU downgrade threat; weakens Euro

Initially yesterday, Sterling/Euro rates rose after Standard & Poor's said it may carry out a mass credit downgrade of euro zone countries if EU leaders fail to move decisively on solving the region's debt woes at this week's summit. The ratings agency said the decision was prompted "by our belief that systemic stresses in the eurozone have risen in recent weeks to the extent that they now put downward pressure on the credit standing of the eurozone as a whole".

Markets took this as Euro negative, and as a result GBP/EUR rates rose as the single currency became cheaper to purchase. The gains were very shortlived however, as the above charts illustrate. As we'll see in a moment, poor UK data combined with better than expected figures from the EU caused Sterling rates to fall through the afternoon.

Sterling exchange rates fall on fundamental data

So why did exchange rates fall through the afternoon? It was due to much better than expected German industrial orders data, which was then compounded by weak UK retail sales and housing market surveys which highlighted the fragility of the UK economy.

German industrial orders rose by 5.2% in October, which was more than twice the amount forecast by analysts. As the figures were so good, it painted a better economic picture in the EU, and this is why the Euro gained strength throughout the afternoon.

It has eased concerns about the euro zone economy, and so yesterday mornings gains were very short lived indeed.

UK economic data also disappointed yesterday, pulling Sterling exchange rates lower as a survey showed the biggest drop in Retail Sales since May. This indicates a lack of consumer confidence and as a result Sterling fell against other currencies.

So what is the Pound/Euro forecast for December and for 2012?

In recent months, Sterling has been supported versus the euro in recent weeks by investors that are concerned about the EU, moving their funds out of Euros and into UK gilts, however this is unlikely to continue should the UK economic picture worsen.

Many currency analysts think that ongoing signs of weakness in the UK economy will put a dampener on the pound as a fragile economy will require the Bank of England to continue buying assets from the market, which involves flooding the market with the currency. If it were not for the problems in the EU, GBP/EUR rates would be significantly lower than they are.

If a consensus is reached this week in meetings between Germany and France, then we could see the Euro stabilise and gather strength. Coupled with a weakening pound, this could mean significantly lower exchange rates. If however problems in the EU continue, the Pound could remain supported against the Euro, but if there is more QE to come from the BoE, many question how long any support could last.

Summary

In short, much depends on any resolution to the EU debt crisis, as this has been driving exchange rates globally, and not just between Sterling and Euros. Whatever currency you need to buy or sell, this could have significant impacts on the exchange rate you're able to achieve.

If you are looking to achieve the best possible exchange rates, then I can provide you with a free consultation on what direction rates may move in, and strategies you can employ to ensure you don't lose out should rates move against you.

Click here to send me an enquiry, and take the first step to achieving the best possible exchange rates and make the most of your currency.

Sterling Euro forecast for December 2011

Tuesday 6th December 2011
Good morning. Sterling rose against the US Dollar yesterday and was up ever so slightly against the Euro, as the Pound tracked a rally in the euro after an agreement between France and Germany on proposals to help solve the euro zone crisis raised confidence in currencies perceived to be higher risk. The pound was also supported by better-than-expected services PMI data. Below you can see how exchange rates moved throughout trading yesterday, and a snapshot of rates as at 08:30m this morning.











• GBP/EUR 1.1685
• GBP/USD 1.5632
• GBP/AUD 1.5300
• GBP/NZD 2.0094
• GBP/CHF 1.4475
• GBP/CAD 1.5890
• GBP/ZAR 12.593
• GBP/JPY 121.52
• GBP/DKK 8.6877
• GBP/NOK 9.0262
• EUR/USD 1.3373

Pound makes slight gains against US Dollar and Euro

As you can see from the above charts, the Pound rose a little against the Euro and US Dollar yesterday, although not by much and the market was generally flat for most of the day. The reasons for the slight gains were the talks in the EU, where France and Germany agreed a series of reforms with regards to the EU debt crisis.

Many in the market think this could be the start to finding a solution to the debt crisis, and this in turn supported riskier currencies. As Sterling is seen as a riskier investment, the increased confidence caused the Pound to rise slightly against the Euro and Dollar, but fell slightly against the Australian Dollar as the antipodean currency is riskier, and so gained more and became more expensive to purchase.

UK Growth falters, giving uncertainty to the direction of Sterling

There were also better than expected PMI figures released yesterday, however despite the improved headline PMI reading, the survey also showed employers shed jobs at the fastest pace in a year, and the majority of market analysts that UK economic growth is faltering. The UK economy looks likely to by either flat or show minimal growth in the last few months of the year.

Further Quantitative Easing could push exchange rates lower

The problem is that signs of weakness in the UK economy will put a damper on the pound as a fragile economy will require the Bank of England to continue buying assets from the market, which would flood the market with the currency. The last time Quantitative Easing was announced Sterling/Euro fell by nearly 3 points, and it's likely the BoE will need to pursue more QE in the coming months, and have hinted as much in recent publications.

Investors and currency speculators of late have been selling the pound for the US Dollar, whenever headlines suggesting policymakers are struggling to make progress in resolving the debt crisis hit risk appetite. This in turn has strengthened the US Dollar and brought GBP/USD rates down in recent weeks

Today's Data

A very quiet today for the UK, with only Retail Sales being released. Canada and Australia have an interest rate decision. Germany releases Factory Order data, and the USA has measures of economic optimism.

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Weekly GBP/EUR & GBP/USD and the weeks data

Monday 5th December 2011
Good morning. So, the start of another week and as usual today I will give a detailed outlook of recent movements in Sterling/Euro, Sterling/US Dollar, and a round up of the weeks economic data that could affect exchange rates.

In this week’s Report:

• Global Central Banks in Co-Ordinated move
• Chancellors budget statement gives Sterling strength
• Riskier currencies benefit from Central Bank move
• Round up of the week’s data that may affect rates

(For currencies other then GBP, EUR and USD, contact us for a consultation)

Sterling vs. Euro;

Last week saw the volatility of the currency markets continue. At the start of the week we saw Sterling lose ground against the Euro, with markets waiting in anticipation for George Osborne to update the country on the state on the UK economy and the government’s future plans in his autumn statement. Despite Mr Osborne’s announcement of slower growth and tough austerity measures the markets reacted positively and the GBP/EUR was pushing back toward the €1.17 level.













However the gains did not last long, with the sudden announcement that six central banks led by the Federal Reserve made it cheaper for banks to borrow dollars in emergencies in a global effort to ease Europe’s sovereign-debt crisis. This was in response to increased tension in global financial markets. Almost immediately the GBP/EUR rate fell by 1%.

The cost for European banks to borrow dollars dropped from the highest in three years, amid continued concerns about the euro’s worsening debt crisis. Two hours before the Fed announcement, China cut the amount of cash that the nation’s banks must set aside as reserves for the first time since 2008.

“The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity,” the Fed statement said.

As rates stabilised towards the end of the week, there still seems to be no end in sight for the troubled Eurozone. Friday saw German Chancellor Angela Merkel make a keynote speech and said Europe is working towards setting up a "fiscal union", in an effort to resolve the Eurozone’s debt crisis. She went on to say an EU treaty was needed to set up such a union and impose financial discipline.

So in summary, rates have continued to trade in a €1.16 to €1.1730 range, as global economic uncertainty continues. It’s worth noting however that rates are still significantly higher than just a few months ago, and not far from a 9 month high.

With so much uncertainty surrounding the currency markets, if you need to buy Euros in the next 6 months, consider a Forward contract. This is where you can fix the current exchange rate, even if you don’t need your currency for up to 2 years. You simply fix your rate with us, and lodge a 10% deposit of the total you need to convert. You settle the remaining 90% when you want your currency to be transferred. In this way you can budget effectively, safe in the knowledge you have secured rates at a high while being protected against any adverse exchange rates movements.

If you are looking for the best exchange rates, click here and send us a free enquiry.

Sterling vs. US Dollar;

The start of last week saw disappointing data released from the UK , with CBI reported sales figures for November showing a sharp decline and net consumer credit figures also dropping sharply. Conversely, we had a few positive batches of data released across the pond, with a huge increase in US consumer confidence for November and a slight rise in new home sales in October.

Despite this, the Pound actually made gains against the Dollar over Monday and Tuesday. As is often the case, strong US data influenced investor’s risk sentiment, encouraging a move away from the safe-haven of the US dollar and into riskier assets, weakening the greenback in the process.













Midweek saw the market make sharp moves upon the announcement that the Federal Reserve along with the European Central Bank, the Bank of England and the central banks of Japan, Switzerland and Canada would make it cheaper for the banks to borrow dollars, providing further liquidity in the market and easing the mounting pressure in the Eurozone. Consequently, the GBP/USD showed a good advance with mid-market rates moving up from 1.5567 to close Wednesday at 1.5706. To put this into perspective, a typical purchase of $200,000 would have seen a £1137 variation in price.

Although Sterling had gained against the Dollar it remained vulnerable as concerns increased about the state of the UK economy after data released on Thursday showed that the manufacturing sector contracted for a second successive month. The UK PMI reading fell to 47.6 in November, its lowest level since June 2009. This caused GBP/USD to bounce around and investors were sceptical that the rally on the back of the coordinated central bank action was sustainable.

Positive data out of the US on Friday strengthened the Dollar against Sterling, pushing GBP/USD rates lower, after it was announced that unemployment had fallen by 0.4%. All in all, it was a choppy week’s trading, with investors quick to book profits on sharp spikes for fear of the next negative headline out of Europe.

If you are looking for the best exchange rates, click here and send us a free enquiry.

Weekly Economic Data that may affect exchange rates

Monday – It’s a quiet start to the week in terms of UK data, with only Inflation data being released today. From the Eurozone we have some inflation numbers, Retail Sales figures, and measures of investor confidence. I the USA Durable Goods Orders are released, in addition to manufacturing production.

Tuesday – Again very quiet today for the UK, with only Retail Sales being released. Canada and Australia have an interest rate decision. Germany releases Factory Order data, and the USA has measures of economic optimism.

Wednesday – Australia has GDP figures released this morning. UK data comprises of Industrial and Manufacturing production. New Zealand announces their latest decision on interest rates.

Thursday – Earlier in the week we saw interest rate decisions for New Zealand, Canada and Australia – today is the turn of the UK and EU. They will announce any change in interest rates, and whether they will pursue any Quantitative Easing. It could be a volatile day for GBP/EUR rates. Later in the day, the USA released various jobless and employment numbers.
Friday – A busy end to the week for the UK, with Inflation data and Trade balance figures being released. Germany also has inflation data, and the USA releases consumer sentiment measures.

If you need to buy or sell foreign currency, click below now to send us an enquiry for free. Our exhange rates are up to 5% better than offered by banks. Take the first step to making the most of your currency now.

Sterling vs Euro Outlook Forecast Predictions

Friday 2nd December 2011

Good morning. Rates remained fairly flat yesterday, with no surprise announcements or adverse data, so there were no dramatic swings in rates as we have seen earlier in the week. Today after the rate snapshot we'll have a detailed look at what the next few months may hold for Sterling/Euro. At 08:30am this morning rates are as follows:



• GBP/EUR 1.1650

• GBP/USD 1.5701

• GBP/AUD 1.5312

• GBP/NZD 2.0095

• GBP/CHF 1.4374

• GBP/CAD 1.5899

• GBP/ZAR 12.671

• GBP/JPY 122.07

• GBP/DKK 8.6603

• GBP/NOK 9.0873

• EUR/USD 1.3473



Pound/Euro rates near a 9 month high



Exchange rates for Pounds to Euros are currently very close to their best in 9 months. So why have exchange rates increased, and what is likely to happen in the next 3 months?



The main reason for rates increasing is the EU debt crisis. As I’m sure you will have seen in the news over the last few months, problems in Greece, Italy, Portugal, Ireland and Spain have caused global economic uncertainty, and this has weakened the Euro making it much cheaper to purchase. In the last 3 months, exchange rates have increased by 3.5% which may not sound like much, but when converting £10k this means you achieve over €400 Euros more. There are real fears that the crisis will spread to other countries within the EU, and it is this that is keeping the euro weak.



So will Sterling/Euro rates continue to rise?



It’s impossible to predict exchange rate movements, but it is important to remember there is no fundamental strength in the Pound. The reason it is performing so well against the Euro is the fact it’s perceived as a safer bet, so savers and investors worried about the debt crisis have been buying the Pound, which has supported it against the Euro.



Chancellor George Osborne earlier this week updated MPs on the state of the economy and the government's future plans in his Autumn Statement as the Office for Budget Responsibility (OBR) publishes its latest growth and borrowing forecasts. Despite most news outlets pitching the statement as doom and gloom amid revised growth forecasts for the UK, the markets have taken it positively as reflected in the Pound rising yesterday. He said slower than expected growth meant it would take longer to reduce the budget deficit, meaning tough austerity measures will extend beyond the next election in 2015.



That is likely to underpin the UKs AAA credit rating and encourage more flows into safe-haven UK gilts. That in turn has supported Sterling despite the prospect of more Quantitative Easing (QE) by the BoE and the risk of recession. Analysts say the fact the UK is following an austerity plan and the BOE is proactive in easing monetary policy is a positive for sterling in the coming months.



Also highlighting the volatility in global markets at the moment, was the recent move by some of the world's biggest central banks, when they announced a programme of co-ordinated action designed to support the global financial system.



The US Federal Reserve, the European Central Bank (ECB), the Bank of England and the central banks of Canada, Japan and Switzerland are all involved. They will make it cheaper for banks to buy US dollars, which they hope will ultimately help businesses and households access finance more easily.



As the eurozone debt crisis has deepened, banks have found it harder to access finance. Analysts said the central banks' move would help to relieve some of this strain within the global financial system.



It should be noted however that recent economic figures suggest that the UK will fall back into recession, and with the Bank of England likely to pursue further QE in the coming months, many analysts expect the Pound to fall. QE floods the market with Sterling which reduces demand, weakening the currency and pulling exchange rates down.



If you need to buy currency in the next 3 months, what are your options?



With the UK’s economic future uncertain, there is every chance rates could fall back away as quickly as they have risen. It’s only the EU debt crisis keeping rates where they are, and given GBP/EUR is near a 9 month high, if you need to buy Euros in the next 3 months, consider a Forward contract.



This is where you can fix the current exchange rate, even if you don’t need your currency for up to 2 years. You simply fix your rate with us, and lodge a 10% deposit of the total you need to convert. You settle the remaining 90% when you want your currency to be transferred. In this way you can budget effectively, safe in the knowledge you have secured rates at a high while being protected against any adverse exchange rates movements.



To discuss any of the above further, contact me today by clicking here. We can give you a free consultation on all the options available to you, whatever your currency requirement, helping you to make an informed decision on when to fix your rate, and make the most of your currency.

If you need to buy or sell foreign currency, click below now to send us an enquiry for free. Our exhange rates are up to 5% better than offered by banks. Take the first step to making the most of your currency now.

Global Central Banks in move to increase liquidity

Thursday 1st December 2011
Good morning. Risk appetite has returned to the markets after a surprise joint action by the worlds central banks. The FED, the European Central Bank and the central banks of Britain, Canada, Japan and Switzerland agreed to cut the cost of existing dollar swap lines by 0.5% in a bid to help European banks hurt as a result of the euro zone debt crisis. This pushed GBP/EUR down and GBP/USD up as riskier currencies benefited. At 08:30am this morning rates are as follows:

• GBP/EUR 1.1651
• GBP/USD 1.5660
• GBP/AUD 1.5408
• GBP/NZD 2.0248
• GBP/CHF 1.4288
• GBP/CAD 1.5973
• GBP/ZAR 12.760
• GBP/JPY 121.44
• GBP/DKK 8.6590
• GBP/NOK 9.0595
• EUR/USD 1.3425

Worlds Central Banks in joint action

You can read a detailed report on what happened with the central bank move here on the Telegraph website, that gives a pretty good summary. The surprise announcement by the central banks yesterday is to create liquidity in financial markets, and it fuelled the market's appetite for risk and encouraged investors to sell the safe haven US Dollar. The effect on the currency markets was instant - the GBP/EUR rate dropped from €1.1720 to €1.1630 in around 10 seconds, and the GBP/USD rate rose by around 2 cents in just a few minutes.

Many clients have asked why the Pound/Euro rate fell while other rates rose. This is due to risk sentiment. The move created more appetite for risk in the markets, so any currency seen as risky such as the Euro gained on the news, becoming more expensive to purchase. Safe haven assets like the USD and GBP fell, and so we saw the US Dollar become cheaper to buy, but the Euro more expensive.

Analysts said sentiment was lifted by the hope that the plan may limit market volatility and go some way to helping find a solution to the ongoing debt and economic problems in the eurozone. In a separate move, China also said it would free up money for its banks to lend. This move also helped soothe concerns about the speed with which its economy was slowing.

This should, according to policymakers, trickle down and make it easier for businesses and households to get access to finance, giving confidence to the market and larger economy in general. As well as cheaper US dollars, the central banks will also provide easier access for lenders to other major currencies as and when they need it.

Markets have settled down this morning, and rates stand at the levels above at around 08:30 this morning.

So what should you do if you need to buy Euros?

If you need to buy Euros in the next 3 months, consider a Forward contract. Rates yesterday were close to a 9 month high, but the developments yesterday have started to pull rates back down, and given the UK economic recovery is still uncertain, the Pound could fall further.

How do Forward contracts work? This is where you can fix the current exchange rate, even if you don’t need your currency for up to 2 years. You simply fix your rate with us, and lodge a 10% deposit of the total you need to convert. You settle the remaining 90% when you want your currency to be transferred. In this way you can budget effectively, safe in the knowledge you have secured rates at a high while being protected against any adverse exchange rates movements.

Send us an enquiry now by clicking here, and have a free consultation on the options we can offer you to help you get the best exchange rate.

Today's Data

In the UK today we see further House Price data from the Halifax, in addition to some inflation figures. Australia has some releases today including Building Permits and Retail Sales. In the Eurozone there are various inflationary measures. From the USA we have Jobless Claims and Unemployment data.

If you need to buy or sell foreign currency, click below now to send us an enquiry for free. Our exhange rates are up to 5% better than offered by banks. Take the first step to making the most of your currency now.