Sterling strengthened against the euro yesterday, hitting a high of €1.1446/£1 on concerns over the sovereign debt crisis in Europe. However, data showed that British retail sales fell at their fastest pace in a year in July, with retailers expecting a further fall in August. It has been an interesting week in the UK. UK growth figures showed that the UK economy grew by a mere 0.2% in the previous quarter, however this was better than many expected so sterling actually gained against the euro and US dollar. The UK’s much maligned austerity measures actually helped make UK assets more attractive this week as the USA and Europe struggle with their respective debt burdens. Sterling may do quite well as a result… But maybe that’s just wishful thinking. Call in now for a live exchange rate.
In the euro zone, the euro weakened as European economic confidence fell and credit rating agency Standard & Poor’s cut Greece’s credit rating again stating that the country will now partially default. Despite last week’s euro rally after a second round bailout for the stricken country, lingering concerns remain this week – especially over Germany’s buy-in to the scheme. One politician questioned the ‘blank cheque’ that his country had written to the European rescue fund. An Italian bond auction on Thursday failed to attract much demand subsequently putting further pressure on the single currency. Out later today, there is European inflation data so call in now for a live exchange rate.
It has been a turbulent week in the USA. Debate has been deadlocked in Congress over a package of spending cuts and tax rises that are needed before the self-imposed debt ceiling can be raised. Republicans and Democrats are at loggerheads over taxes, with what Vince Cable referred to as a group of “right wing nutters” in the Republican party refusing any package that increases taxes. This is a problem because the US government will run out of money to pay key bills on August 4th. Call in now for a live exchange rate.
Elsewhere, safe haven currencies have seen record highs this week against the US dollar. The Swiss franc hit an all-time high against the US dollar on concerns over the debt ceiling in the USA and the Japanese yen hit the highest level against the US dollar since the Second World War. The Canadian dollar also made gains as investors brought forward expectations for an interest rate rise. Call in now for a live exchange rate to avoid losing out.
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Friday, 29 July 2011
Thursday, 28 July 2011
Sterling slipped against the US dollar yesterday, falling off 2 month highs as data showed that UK factory orders declined more than estimated and manufacturer optimism dropped to the lowest level in 2 years. Sterling also fell against the euro as the figures boosted the case for the Bank of England to keep interest rates on hold at record lows. Tuesday’s GDP data showed that UK economic growth for the 2nd Quarter was poor and as a result the Bank is likely to leave monetary policy alone until at least next year. Out later today there is consumer confidence data, so call in now for a live exchange rate.
In the euro zone, the single currency fell below $1.44/ €1 against the US dollar yesterday as stock markets reflected investor concerns over the US stalemate over the debt ceiling negotiations. Germany’s Finance Minister Wolfgang Schaeuble also made comments that didn’t help the euro after objecting to Germany writing a “blank cheque” to help the euro zone rescue fund to buy bonds. The euro continues to remain strong against the pound on favourable interest rate differentials – call in now for a live exchange rate.
In the USA, the US dollar advanced from the lowest level since May against several other major currencies as investors bizarrely looked to the US dollar as a safe haven currency. With no fresh news on the debt negotiations yesterday, the US dollar rallied slightly although this could remain to be shortlived. Most market participants believed the deficit reduction proposals being discussed in Congress fall short of the required budget cuts necessary to avert a U.S. debt downgrade by ratings agencies.
Elsewhere, the Australian dollar made large gains against the US dollar as consumer prices rose more than forecast. In addition, the ultra safe haven of the Swiss franc continued to make ground against the US dollar as safe haven demand for the currency kept it in demand. Call in now for a live exchange rate.
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In the euro zone, the single currency fell below $1.44/ €1 against the US dollar yesterday as stock markets reflected investor concerns over the US stalemate over the debt ceiling negotiations. Germany’s Finance Minister Wolfgang Schaeuble also made comments that didn’t help the euro after objecting to Germany writing a “blank cheque” to help the euro zone rescue fund to buy bonds. The euro continues to remain strong against the pound on favourable interest rate differentials – call in now for a live exchange rate.
In the USA, the US dollar advanced from the lowest level since May against several other major currencies as investors bizarrely looked to the US dollar as a safe haven currency. With no fresh news on the debt negotiations yesterday, the US dollar rallied slightly although this could remain to be shortlived. Most market participants believed the deficit reduction proposals being discussed in Congress fall short of the required budget cuts necessary to avert a U.S. debt downgrade by ratings agencies.
Elsewhere, the Australian dollar made large gains against the US dollar as consumer prices rose more than forecast. In addition, the ultra safe haven of the Swiss franc continued to make ground against the US dollar as safe haven demand for the currency kept it in demand. Call in now for a live exchange rate.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Wednesday, 27 July 2011
Sterling hit a 6 week high yesterday against a broadly weaker US dollar after UK GDP figures came in higher than expected investors dumped the US currency over fears of a US default. Data released yesterday morning showed that the UK economy grew by a mere 0.2% between April and June as industrial output shrank. However, the consensus expectation was GDP growth of 0.1% but many analysts had been braced for shock figures that showed a contraction. Therefore, despite 0.2% being a pretty abysmal figure, sterling jumped against the euro and US dollar. Sterling has benefited from being the ‘best of a bad bunch’ in recent weeks as markets applaud the UK’s austerity measures over the euro zone debt crisis and the deepening US debt crisis. However, as the figures show, what is holding the pound back from a significant rally against the euro and US dollar is weak growth. Call in now for a live exchange rate.
In the euro zone, the euro jumped against the US dollar, breaking the $1.45/€1 level as markets became concerned over the lack of an agreement over the US debt ceiling. There are concerns that the deadlock will mean that the US government misses a debt repayment next week for the first time in its history. Aside from US and UK GDP news, there was surprisingly little European news. German consumer confidence slipped slightly which is understandable given the panic over the Greek crisis in previous weeks. Call in now for a live exchange rate.
In the USA, the impasse reached in Washington over the spending cuts and tax increases seems to get harder and harder to break. Essentially, neither the Democrats nor the Republicans are willing to compromise with the other party over their plans to bring down the deficit which seems to rest on the fact that the Republican senators (unsurprisingly given the higher number of Republican millionaires in the Senate) do not want to increase taxes on the wealthy. This could get rather messy over the next few days so ensure you speak to one of the team to stay on top of market movements.
Elsewhere, the Swiss franc gained as investors looked to safer haven currencies and in a new twist to current trends, the New Zealand and Australian dollars advanced against the US dollar as Asian sovereign investors looked to diversify away from the US dollar as the reserve currency of choice. Call in now for a live exchange rate.
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In the euro zone, the euro jumped against the US dollar, breaking the $1.45/€1 level as markets became concerned over the lack of an agreement over the US debt ceiling. There are concerns that the deadlock will mean that the US government misses a debt repayment next week for the first time in its history. Aside from US and UK GDP news, there was surprisingly little European news. German consumer confidence slipped slightly which is understandable given the panic over the Greek crisis in previous weeks. Call in now for a live exchange rate.
In the USA, the impasse reached in Washington over the spending cuts and tax increases seems to get harder and harder to break. Essentially, neither the Democrats nor the Republicans are willing to compromise with the other party over their plans to bring down the deficit which seems to rest on the fact that the Republican senators (unsurprisingly given the higher number of Republican millionaires in the Senate) do not want to increase taxes on the wealthy. This could get rather messy over the next few days so ensure you speak to one of the team to stay on top of market movements.
Elsewhere, the Swiss franc gained as investors looked to safer haven currencies and in a new twist to current trends, the New Zealand and Australian dollars advanced against the US dollar as Asian sovereign investors looked to diversify away from the US dollar as the reserve currency of choice. Call in now for a live exchange rate.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Tuesday, 26 July 2011
Sterling came off a five-week high against the US dollar yesterday, with investors wary of UK data activity showing lower than expected figures this week. Investors said that sterling was overvalued above $1.63/£1 against the US dollar – especially if today’s GDP figures disappoint as many expect. Some analysts compared moves between sterling, euro and the US dollar to an ugly contest in recent weeks. Whilst the UK economy has a credible fiscal plan in place, it has been held back by weak economic growth. Prime Minister David Cameron yesterday warned that Britain’s path to growth will be a difficult one and there was no more money for another round of Quantitative Easing. Call in now for a live exchange rate.
In the euro zone, credit rating agency Moody's cut Greece's credit rating further into ‘junk’ territory yesterday and said it was almost certain to call a default on debt given the new bailout, which trimmed the country’s payouts to many holders of Greek debt as the private sector shouldered some of the burden. In a day of volatile trading and concern over a lack of a decision on the US debt ceiling saw many investors selling the euro and US currency. Call in now to avoid losing out.
In the USA, Republicans and Democrats yet again failed to reach a deal on the debt ceiling, fuelling concern the U.S. faces a credit-rating cut and sapping demand for Treasuries. Confidence in politicians’ ability to solve the debt crises globally collapsed yesterday as a result, sending stock markets into a tailspin and increasing the cost of sovereign borrowing. Safe haven assets saw a boost and the Swiss franc hit a record high against the euro and US dollar in what one trader referred to as the “plague on both your houses” investment in reference to concerns over both the euro and US dollar.
Elsewhere, amongst the current market panic over the USA and the euro zone, commodities are losing their influence over currencies of nations that depend on raw materials exports. With investors seeking safe havens, currencies such as the New Zealand and Australian dollars have been suffering as traders look elsewhere.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, credit rating agency Moody's cut Greece's credit rating further into ‘junk’ territory yesterday and said it was almost certain to call a default on debt given the new bailout, which trimmed the country’s payouts to many holders of Greek debt as the private sector shouldered some of the burden. In a day of volatile trading and concern over a lack of a decision on the US debt ceiling saw many investors selling the euro and US currency. Call in now to avoid losing out.
In the USA, Republicans and Democrats yet again failed to reach a deal on the debt ceiling, fuelling concern the U.S. faces a credit-rating cut and sapping demand for Treasuries. Confidence in politicians’ ability to solve the debt crises globally collapsed yesterday as a result, sending stock markets into a tailspin and increasing the cost of sovereign borrowing. Safe haven assets saw a boost and the Swiss franc hit a record high against the euro and US dollar in what one trader referred to as the “plague on both your houses” investment in reference to concerns over both the euro and US dollar.
Elsewhere, amongst the current market panic over the USA and the euro zone, commodities are losing their influence over currencies of nations that depend on raw materials exports. With investors seeking safe havens, currencies such as the New Zealand and Australian dollars have been suffering as traders look elsewhere.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Monday, 25 July 2011
Sterling performed well towards the end of last week against the US dollar as investors celebrated a second round bailout of Greece. The pound hit the highest levels against the US dollar since late May as investors backed the UK’s fiscal plan over Europe or the USA. Against the euro, sterling is held back by poor economic growth as interest rates rise at a faster rate in the euro zone. This week sees the first estimate of UK GDP for the 2nd quarter which many analysts expect to show minimal growth of 0.1% against a first quarter figure of 0.5%. Many analysts are warning that there could be a ‘downside surprise’ – i.e. it comes in much lower than 0.1%, so call in now for a live exchange rate.
In the euro zone, whilst last week’s bailout plan for Greece was widely celebrated by the markets, there is concern that it is only a temporary solution which fails to address the core issues. The plan is heavily reliant on Greece meeting obligations on spending and tax – something it has already failed to do on the first bailout. Key changes to the European bailout fund will not be debated by the German parliament until September, leaving further uncertainty. Released this week there is euro zone inflation data that is expected to creep up further towards 3%, which is likely to keep the pressure on the ECB to increase interest rates later in the summer. Call in now to ensure you don’t miss out.
In the USA, despite announcements last week that Congress had reached agreement over a deal to cut the country’s deficit and raise the debt ceiling, Washington yet again failed to reach an agreement over the weekend. UK Business Secretary Vince Cable blamed several “right wing nutters” for creating “the biggest threat to the world’s financial system”. President Barack Obama insists that any plan must be a long term one that will address the US government’s spending well beyond the next Presidential election. This is likely to be the main focus this week, so call in now for a live exchange rate.
Elsewhere, the political deadlock in Washington has seen safe haven assets spike in price this morning, with gold and the Swiss franc attracting high demand as investors weigh up the prospect of a US debt default. Ensure you protect yourself by speaking to one of the team sooner rather than later.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, whilst last week’s bailout plan for Greece was widely celebrated by the markets, there is concern that it is only a temporary solution which fails to address the core issues. The plan is heavily reliant on Greece meeting obligations on spending and tax – something it has already failed to do on the first bailout. Key changes to the European bailout fund will not be debated by the German parliament until September, leaving further uncertainty. Released this week there is euro zone inflation data that is expected to creep up further towards 3%, which is likely to keep the pressure on the ECB to increase interest rates later in the summer. Call in now to ensure you don’t miss out.
In the USA, despite announcements last week that Congress had reached agreement over a deal to cut the country’s deficit and raise the debt ceiling, Washington yet again failed to reach an agreement over the weekend. UK Business Secretary Vince Cable blamed several “right wing nutters” for creating “the biggest threat to the world’s financial system”. President Barack Obama insists that any plan must be a long term one that will address the US government’s spending well beyond the next Presidential election. This is likely to be the main focus this week, so call in now for a live exchange rate.
Elsewhere, the political deadlock in Washington has seen safe haven assets spike in price this morning, with gold and the Swiss franc attracting high demand as investors weigh up the prospect of a US debt default. Ensure you protect yourself by speaking to one of the team sooner rather than later.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Friday, 22 July 2011
Sterling hit a five-week high against the US dollar on Thursday as a draft conclusion was reached in Europe on the Greek debt crisis. This saw the euro rally against the US dollar and sterling followed the euro in gaining against the US currency. Sterling has tended to track US dollar gains against the single currency as investors pull back from safe haven investments in the US dollar. UK data yesterday was mixed, with figures showing an above forecast increase in retail sales figures for June. However, consumer confidence dropped in the same period and data showed that public sector net borrowing rose which left investors doubting the validity of the UK recovery. Earlier this week, the Bank of England minutes showed no change on last month’s voting, but there was less talk of potential further Quantitative Easing. Call in now for a live exchange rate.
In the euro zone, markets rallied after European leaders agreed a new rescue deal for Greece that will trim the country’s debt by 12% of GDP and see the European bailout fund given new sweeping powers. The euro gained 1% against the US dollar as relieved investors bought back in to equities following conclusions that a euro zone collapse was not imminent. Key points from the deal are that the European Financial Stability Facility rescue fund will help states sooner, recapitalise banks and intervene in the bond market in a drive to halt contagion. Despite waves of optimism, many do not expect this to last long as markets will inevitably question Greece’s ability to deal with its debt mountain.
In the USA, the US dollar dropped across the board as investors reversed safe haven currency investments on the back of the new Greek bailout deal. In addition, markets were wary of the approaching August deadline for a potential US default. There were moves made this week on an agreement to raise the US Congressional debt ceiling and avoid defaulting on a payment on 2nd August. In addition, US unemployment claims gained by more than expected hitting 418,000 for the week.
Elsewhere, the Canadian dollar rose to a three-year high against the US dollar and the Norwegian krone advanced as crude oil prices rose. The Swiss franc fell against most of its major counterparts as investors pulled out of safe haven investments. Call in now for a live exchange rate.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, markets rallied after European leaders agreed a new rescue deal for Greece that will trim the country’s debt by 12% of GDP and see the European bailout fund given new sweeping powers. The euro gained 1% against the US dollar as relieved investors bought back in to equities following conclusions that a euro zone collapse was not imminent. Key points from the deal are that the European Financial Stability Facility rescue fund will help states sooner, recapitalise banks and intervene in the bond market in a drive to halt contagion. Despite waves of optimism, many do not expect this to last long as markets will inevitably question Greece’s ability to deal with its debt mountain.
In the USA, the US dollar dropped across the board as investors reversed safe haven currency investments on the back of the new Greek bailout deal. In addition, markets were wary of the approaching August deadline for a potential US default. There were moves made this week on an agreement to raise the US Congressional debt ceiling and avoid defaulting on a payment on 2nd August. In addition, US unemployment claims gained by more than expected hitting 418,000 for the week.
Elsewhere, the Canadian dollar rose to a three-year high against the US dollar and the Norwegian krone advanced as crude oil prices rose. The Swiss franc fell against most of its major counterparts as investors pulled out of safe haven investments. Call in now for a live exchange rate.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Thursday, 21 July 2011
Sterling had a steady day on Wednesday after the Bank of England’s meeting minutes were slightly less downbeat than had been expected. In contrast to last month, only one member discussed the potential need for further Quantitative Easing. MPC members again voted 7-2 in favour of keeping rates on hold at 0.5%. Sterling crept up against the US dollar, finishing the day at $1.6123/£1 but tracked the US dollar downwards against the euro which made gains on cautious optimism over a potential solution for Greece in a meeting later today. However, investors are still very much concerned over the UK’s exposure to the European sovereign debt crisis, with uncertainty as to what the impact would be in the case of a default. Out today, there are key public sector borrowing figures and retail sales data for the month. Both have a tendency to cause volatility so call in now for a live exchange rate to avoid losing out.
The euro advanced to the highest level in almost a week against the dollar on optimism European leaders will reach an agreement on the region’s debt crisis later today. Some French ministers said that European leaders were less divided than the media was reporting and were likely to reach an agreement at the summit that will alleviate Greece's debt woes. The quiet confidence in the market yesterday helped Italian and Spanish bond yields to fall, having hit record levels on Monday. There is a wide array of data out today in addition which could see volatility – call in now for a live exchange rate.
In the USA, the US dollar dropped yesterday as risk appetite saw investors unwind safe haven positions and sell US dollars. In addition to confidence over a potential Greek solution today, President Obama and several other Congressional leaders endorsed a new bi-partisan debt ceiling proposal which is aimed at averting default and reducing the deficit in the long run. Markets are feeling slightly happier now the prospect of a US default has all but been averted with this new plan. Fed Chairman Ben Bernanke speaks later today so call in now for a live exchange rate.
Elsewhere, commodity-linked currencies were helped by stronger risk appetite with the Australian dollar making gains against the US dollar. The Canadian dollar reached its highest since early May, helped by a rise in crude oil prices and also interest from a Chinese oil producer in acquiring a Canadian company. Call in now to speak to one of the team and protect yourself.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
The euro advanced to the highest level in almost a week against the dollar on optimism European leaders will reach an agreement on the region’s debt crisis later today. Some French ministers said that European leaders were less divided than the media was reporting and were likely to reach an agreement at the summit that will alleviate Greece's debt woes. The quiet confidence in the market yesterday helped Italian and Spanish bond yields to fall, having hit record levels on Monday. There is a wide array of data out today in addition which could see volatility – call in now for a live exchange rate.
In the USA, the US dollar dropped yesterday as risk appetite saw investors unwind safe haven positions and sell US dollars. In addition to confidence over a potential Greek solution today, President Obama and several other Congressional leaders endorsed a new bi-partisan debt ceiling proposal which is aimed at averting default and reducing the deficit in the long run. Markets are feeling slightly happier now the prospect of a US default has all but been averted with this new plan. Fed Chairman Ben Bernanke speaks later today so call in now for a live exchange rate.
Elsewhere, commodity-linked currencies were helped by stronger risk appetite with the Australian dollar making gains against the US dollar. The Canadian dollar reached its highest since early May, helped by a rise in crude oil prices and also interest from a Chinese oil producer in acquiring a Canadian company. Call in now to speak to one of the team and protect yourself.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Wednesday, 20 July 2011
Sterling gained against the US dollar on Tuesday boosted by a stock market recovery, but the pound’s progress against the euro was hampered by the UK’s exposure to the European debt crisis. UK banks have exposure totalling several billion euros, so naturally investors are concerned over the impact of an escalation of the crisis on the UK. The UK’s close trade links with Europe are also a concern for many – any default in the region could have a substantial knock on effect on UK growth. Out later today we have the Bank of England’s minutes from their recent monetary policy meeting. Sterling could come under pressure as the Bank is expected to reaffirm that interest rates will stay on hold for some time. Call in now for a live exchange rate.
In the euro zone, the euro strengthened yesterday as debt yields of some peripheral euro zone countries eased back ahead of an EU summit later this week. Investors are upbeat that a solution to Greece's debt problem may be reached at the summit. This came after a turbulent day on bond markets on Monday as Italy suspended trading in its bonds as yields hit record levels. In addition, the ECB has strayed from its hard line stance on default, with the Austrian central bank governor suggesting that a ‘selective default’ may be allowed. Call in now for a live exchange rate.
In the USA, the US dollar slipped yesterday as investors unravelled the ultra-safe US dollar holdings that they put themselves into on Monday. Strong US housing data helped to boost risk appetite, with new home starts rising to a 6 month high in June, a jump of 14.6% on the previous month. Many analysts expect the euro/ US dollar rate to be kept in a range as markets balance the European debt crisis on the one hand with the US debt ceiling deadlock on the other. Gold, however, continued to attract safe-haven investment flows, gaining yet again to break through the $1,600 per ounce level. Call in now for a live exchange rate to avoid losing out.
Elsewhere, the Canadian dollar hit the highest level in 11 weeks after the Bank of Canada kept its main interest rate unchanged and said borrowing costs will increase as the economy recovers. A rebound in global stock markets yesterday saw increased demand for riskier assets and commodity based currencies such as the Canadian dollar followed rebounding oil prices upwards.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, the euro strengthened yesterday as debt yields of some peripheral euro zone countries eased back ahead of an EU summit later this week. Investors are upbeat that a solution to Greece's debt problem may be reached at the summit. This came after a turbulent day on bond markets on Monday as Italy suspended trading in its bonds as yields hit record levels. In addition, the ECB has strayed from its hard line stance on default, with the Austrian central bank governor suggesting that a ‘selective default’ may be allowed. Call in now for a live exchange rate.
In the USA, the US dollar slipped yesterday as investors unravelled the ultra-safe US dollar holdings that they put themselves into on Monday. Strong US housing data helped to boost risk appetite, with new home starts rising to a 6 month high in June, a jump of 14.6% on the previous month. Many analysts expect the euro/ US dollar rate to be kept in a range as markets balance the European debt crisis on the one hand with the US debt ceiling deadlock on the other. Gold, however, continued to attract safe-haven investment flows, gaining yet again to break through the $1,600 per ounce level. Call in now for a live exchange rate to avoid losing out.
Elsewhere, the Canadian dollar hit the highest level in 11 weeks after the Bank of Canada kept its main interest rate unchanged and said borrowing costs will increase as the economy recovers. A rebound in global stock markets yesterday saw increased demand for riskier assets and commodity based currencies such as the Canadian dollar followed rebounding oil prices upwards.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Tuesday, 19 July 2011
Sterling hit a one-and-a-half-month high against the euro on Monday, spurred on by moves away from the euro as euro zone finance ministers failed to find a solution to the region’s worsening debt crisis. Sterling fell just short of €1.15/£1, gaining significantly from the start of the month when it hit €1.11/£1 against the single currency. Recent figures from Lloyds TSB estimate that sterling is around 20% undervalued against the euro and despite a less-than-rosy outlook for the UK economy, analysts feel sterling's recent run higher versus the euro was unsurprising given the level of negative sentiment towards the euro. Call in now for a live exchange rate.
In the euro zone, the euro fell to a record low against the Swiss franc and slid the most in almost a week against the dollar on concern European leaders will fail to agree on a way to contain the region’s debt crisis at a summit this week. In addition, Italian and Spanish bond yields jumped to record levels. Markets are concerned that whilst Europe continues to follow the current strategy, contagion fears will spread into peripheral countries such as Spain and Italy. Out today there is German economic sentiment which has a tendency to cause volatility so ensure you don’t miss out and speak to one of the team today.
In the USA, the US dollar fell to an all time low against the safe-haven Swiss franc as demand for safety rocketed after European Central Bank President Jean- Claude Trichet repeated his opposition to any restructuring of Greek debt. In addition, there were concerns over the lack of apparent movement by Congress in dealing with the nation's looming debt ceiling crisis. However, rumours circulated that parties were inching closer to a compromise over the debt ceiling with many expecting an announcement later this week. Out today there is building permit and housing figures so call in now for a live price.
Elsewhere, the Hungarian and Polish currencies both sank as much as 1.7 percent to their weakest levels against the Swiss franc as the euro-region’s debt crisis threatens to hurt the export-led economic recovery in the European Union’s east. Call in now for a live rate.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, the euro fell to a record low against the Swiss franc and slid the most in almost a week against the dollar on concern European leaders will fail to agree on a way to contain the region’s debt crisis at a summit this week. In addition, Italian and Spanish bond yields jumped to record levels. Markets are concerned that whilst Europe continues to follow the current strategy, contagion fears will spread into peripheral countries such as Spain and Italy. Out today there is German economic sentiment which has a tendency to cause volatility so ensure you don’t miss out and speak to one of the team today.
In the USA, the US dollar fell to an all time low against the safe-haven Swiss franc as demand for safety rocketed after European Central Bank President Jean- Claude Trichet repeated his opposition to any restructuring of Greek debt. In addition, there were concerns over the lack of apparent movement by Congress in dealing with the nation's looming debt ceiling crisis. However, rumours circulated that parties were inching closer to a compromise over the debt ceiling with many expecting an announcement later this week. Out today there is building permit and housing figures so call in now for a live price.
Elsewhere, the Hungarian and Polish currencies both sank as much as 1.7 percent to their weakest levels against the Swiss franc as the euro-region’s debt crisis threatens to hurt the export-led economic recovery in the European Union’s east. Call in now for a live rate.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Monday, 18 July 2011
Sterling rose to a 1 ½ month high against the euro this morning, touching €1.1478/£1 as a lack of confidence in the euro saw it lose ground across the board. It was a quiet end to the week in terms of data for the UK, which meant that markets were squarely focussed on the results of European bank ‘stress tests’ on Friday. Investors were not impressed with the results – mainly because they did not adequately address the issue on everybody’s mind; that of sovereign default. Confidence fell and sterling made gains. With risk aversion and uncertainty prevalent in global markets, there are several key pieces of UK data this week that could see exchange rate volatility. Wednesday’s MPC minutes will help investors to gauge UK monetary outlook. There are also public borrowing and retail sales figures released on Thursday so call in now for a live exchange rate.
In the euro zone, the sovereign debt crisis hit new depths last week with European Finance ministers failing to reach agreement yet again on a debt restructuring for Greece. Italy came under pressure last week too, with a run on the country’s bonds leaving yields increasingly higher. Whilst only 8 European banks failed the stress tests, investors felt that the tests did not go into sufficient depth to uncover relevant issues. This has seen the euro lose ground against its counterparts this morning. Out this week, there is key PMI data and business survey figures but these are likely to be overshadowed by sovereign debt concerns.
The focus in the USA is increasingly on the approaching debt ceiling deadline and the frustrating deadlock between lawmakers. Essentially, the USA has reached its overdraft limit and needs to do some cost cutting before it can borrow more money, but lawmakers are deadlocked over where the savings should come from. Ratings agencies S&P and Moody’s have both warned that the USA’s AAA credit rating is at serious risk and there is the looming prospect of a default on US government bonds. The consequences of this would be far from trivial, so ensure you call in now to protect yourself from any adverse market movements.
Elsewhere, expectations for an interest rate hike in Australia have been pushed back over the last few weeks and came under further pressure on Friday. However, the currency has remained particularly insensitive to this given the interrelationship with China and its import demands. Call in now for a live exchange rate.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, the sovereign debt crisis hit new depths last week with European Finance ministers failing to reach agreement yet again on a debt restructuring for Greece. Italy came under pressure last week too, with a run on the country’s bonds leaving yields increasingly higher. Whilst only 8 European banks failed the stress tests, investors felt that the tests did not go into sufficient depth to uncover relevant issues. This has seen the euro lose ground against its counterparts this morning. Out this week, there is key PMI data and business survey figures but these are likely to be overshadowed by sovereign debt concerns.
The focus in the USA is increasingly on the approaching debt ceiling deadline and the frustrating deadlock between lawmakers. Essentially, the USA has reached its overdraft limit and needs to do some cost cutting before it can borrow more money, but lawmakers are deadlocked over where the savings should come from. Ratings agencies S&P and Moody’s have both warned that the USA’s AAA credit rating is at serious risk and there is the looming prospect of a default on US government bonds. The consequences of this would be far from trivial, so ensure you call in now to protect yourself from any adverse market movements.
Elsewhere, expectations for an interest rate hike in Australia have been pushed back over the last few weeks and came under further pressure on Friday. However, the currency has remained particularly insensitive to this given the interrelationship with China and its import demands. Call in now for a live exchange rate.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Friday, 15 July 2011
Sterling has had an interesting week, gaining against the US dollar and euro. The pound hit a three-week high against a weak US dollar on Thursday, but slipped from earlier highs against the euro as concerns about the fragile UK economic recovery dented sterling’s prospects and reinforced the view that UK interest rates will stay on hold for a long period. Sterling’s recovery from lows hit earlier in the week has more to do with poor US figures than any positive news from the UK. Many analysts feel that sterling cannot push much beyond $1.62/£1 against the US dollar given the prospect of further quantitative easing in the UK. Call in now for a live exchange rate.
The euro has had a volatile week as Italy joined the ever-growing list of countries succumbing to the sovereign debt crisis. The euro came under pressure as Italian bond yields hit a 15-year high – i.e. Italy has to pay astronomical interest rates in order to borrow. However, these eased as the country’s austerity budget passed its first hurdle. The 4-year package aims to balance the country’s books by 2014 and is worth €48bn. Inflation for the region came in as expected at 2.7% as had been expected. Call in now for a live exchange rate.
In the USA, the US dollar took a hammering this week against sterling and other major currencies as Federal Reserve Chairman Ben Bernanke raised the prospect of further quantitative easing. This saw investors look to higher yielding currencies, however on Thursday he told a US Senate Committee that the time had not yet come and noted that inflation had actually risen since 2010. In other news this week, the US Congress is still engaged in a bitter deadlock over a US austerity plan that is desperately needed to raise the country’s borrowing ceiling and avoid a default event on August 6th. Keep an eye on this one as it could get messy…
Elsewhere, with Italy related panic in the markets, safe haven currencies saw a large boost this week – particularly the Japanese yen which gained against the US dollar before falling off on news that Italy’s bill had passed the first stage of parliament. In addition, New Zealand’s dollar strengthened to a record versus its U.S. counterpart after the economy grew at a faster pace than central bank had forecast, signalling that the nation is recovering from a deadly earthquake in February.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
The euro has had a volatile week as Italy joined the ever-growing list of countries succumbing to the sovereign debt crisis. The euro came under pressure as Italian bond yields hit a 15-year high – i.e. Italy has to pay astronomical interest rates in order to borrow. However, these eased as the country’s austerity budget passed its first hurdle. The 4-year package aims to balance the country’s books by 2014 and is worth €48bn. Inflation for the region came in as expected at 2.7% as had been expected. Call in now for a live exchange rate.
In the USA, the US dollar took a hammering this week against sterling and other major currencies as Federal Reserve Chairman Ben Bernanke raised the prospect of further quantitative easing. This saw investors look to higher yielding currencies, however on Thursday he told a US Senate Committee that the time had not yet come and noted that inflation had actually risen since 2010. In other news this week, the US Congress is still engaged in a bitter deadlock over a US austerity plan that is desperately needed to raise the country’s borrowing ceiling and avoid a default event on August 6th. Keep an eye on this one as it could get messy…
Elsewhere, with Italy related panic in the markets, safe haven currencies saw a large boost this week – particularly the Japanese yen which gained against the US dollar before falling off on news that Italy’s bill had passed the first stage of parliament. In addition, New Zealand’s dollar strengthened to a record versus its U.S. counterpart after the economy grew at a faster pace than central bank had forecast, signalling that the nation is recovering from a deadly earthquake in February.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Thursday, 14 July 2011
Sterling climbed against a weaker US dollar yesterday as US Federal Reserve Chairman Ben Bernanke hinted at the possibility of further monetary stimulus for the US economy. The pound recovered from lows earlier in the week to peak at $1.6120/ £1. However, sterling fell against the euro as data released showed that the number of people claiming unemployment benefits jumped unexpectedly last month, taking the figure to the highest level since March of last year. The unemployment rate stayed steady at 7.7%. Overall this added to the view that the UK economic outlook is worsening, with the likelihood that interest rates will remain on hold well into next year. It is a quiet day for UK data today, but call in as we are still likely to see some large volatility.
In the euro zone, the euro had its best day against the US dollar since April, rebounding above $1.41/€1 as news of the potential fresh round of US quantitative easing saw investors look to higher yielding assets in the euro zone. In addition, credit rating agency Fitch said that an ambitious deficit reduction plan from Italy would help stabilise its credit rating. This was seen as positive news for the euro. Out today, there is European wide inflation data which – if higher than expected – could see the euro strengthen so call in now for a live exchange rate.
In the USA, the US dollar tumbled across the board on the comments from Fed Chairman Ben Bernanke. The Federal Reserve finished the second round of Quantitative Easing in June and a potential fresh set of funding would see the market flooded with cheap money that investors could invest in higher yielding assets elsewhere. Out later today we have retail sales data and unemployment claims, so call in now for a live exchange rate.
Elsewhere, the higher yielding currencies such as the Australian and New Zealand dollar rose swiftly on the news over potential US monetary stimulus given that these are generally the currencies of choice for carry trades funded by cheap US dollars. Ensure you don’t lose out by calling in today.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, the euro had its best day against the US dollar since April, rebounding above $1.41/€1 as news of the potential fresh round of US quantitative easing saw investors look to higher yielding assets in the euro zone. In addition, credit rating agency Fitch said that an ambitious deficit reduction plan from Italy would help stabilise its credit rating. This was seen as positive news for the euro. Out today, there is European wide inflation data which – if higher than expected – could see the euro strengthen so call in now for a live exchange rate.
In the USA, the US dollar tumbled across the board on the comments from Fed Chairman Ben Bernanke. The Federal Reserve finished the second round of Quantitative Easing in June and a potential fresh set of funding would see the market flooded with cheap money that investors could invest in higher yielding assets elsewhere. Out later today we have retail sales data and unemployment claims, so call in now for a live exchange rate.
Elsewhere, the higher yielding currencies such as the Australian and New Zealand dollar rose swiftly on the news over potential US monetary stimulus given that these are generally the currencies of choice for carry trades funded by cheap US dollars. Ensure you don’t lose out by calling in today.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Wednesday, 13 July 2011
Sterling fell to a new 5 ½ month low against the US dollar yesterday after UK consumer price inflation unexpectedly dropped which prompted investors to push back expectations of an interest rate hike in the UK. Inflation fell to 4.2% from 4.5% unexpectedly in June and the trade gap widened by £0.9bn, pointing to further weakness in the economy and vindicating those in the Bank of England who have long been predicting that inflation will fall off. Combined with last week’s poor industrial and construction figures, there is speculation that UK GDP will be poor in the 2nd Quarter of 2011. Call in now for a live exchange rate.
In the euro zone, the euro came under further pressure yesterday, dropping against sterling, with the pound rising above the €1.14/£1 mark for the first time in several weeks as investors became increasingly concerned over the European debt crisis. An emergency meeting of European Finance ministers over Monday and Tuesday failed to reach any form of plan to restructure Greek debt and Spanish and Italian government borrowing costs spiralled on the bond markets. This saw the euro hit a record low against the Swiss franc for a second straight day and a four-month low against the US dollar on fears that European leaders were failing to prevent the crisis from spreading. Call in now to ensure you set a budget level and take advantage of any large movements.
In the USA, the US dollar gained against the euro and sterling but started to slip against both in late trading as government trade data showed that the USA’s trade deficit widened by more than had been expected in May to hit $50.2bn. The US dollar is being driven by risk related trade and as a result, hit its highest against a basket of currencies in more than three months on uncertainties about the Greek and Italian debt crisis.
Elsewhere, the Canadian dollar fluctuated against it’s the US dollar as the US dollar’s allure as a safe haven currency countered speculation that global growth may suffer as Europe’s debt crisis escalates and the U.S. recovery falters. The Japanese yen (another safe haven currency) also gained broadly – gaining by 1% against the US dollar. Call in now for a live exchange rate.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, the euro came under further pressure yesterday, dropping against sterling, with the pound rising above the €1.14/£1 mark for the first time in several weeks as investors became increasingly concerned over the European debt crisis. An emergency meeting of European Finance ministers over Monday and Tuesday failed to reach any form of plan to restructure Greek debt and Spanish and Italian government borrowing costs spiralled on the bond markets. This saw the euro hit a record low against the Swiss franc for a second straight day and a four-month low against the US dollar on fears that European leaders were failing to prevent the crisis from spreading. Call in now to ensure you set a budget level and take advantage of any large movements.
In the USA, the US dollar gained against the euro and sterling but started to slip against both in late trading as government trade data showed that the USA’s trade deficit widened by more than had been expected in May to hit $50.2bn. The US dollar is being driven by risk related trade and as a result, hit its highest against a basket of currencies in more than three months on uncertainties about the Greek and Italian debt crisis.
Elsewhere, the Canadian dollar fluctuated against it’s the US dollar as the US dollar’s allure as a safe haven currency countered speculation that global growth may suffer as Europe’s debt crisis escalates and the U.S. recovery falters. The Japanese yen (another safe haven currency) also gained broadly – gaining by 1% against the US dollar. Call in now for a live exchange rate.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Sterling fell to a new 5 ½ month low against the US dollar yesterday after UK consumer price inflation unexpectedly dropped which prompted investors to push back expectations of an interest rate hike in the UK. Inflation fell to 4.2% from 4.5% unexpectedly in June and the trade gap widened by £0.9bn, pointing to further weakness in the economy and vindicating those in the Bank of England who have long been predicting that inflation will fall off. Combined with last week’s poor industrial and construction figures, there is speculation that UK GDP will be poor in the 2nd Quarter of 2011. Call in now for a live exchange rate.
In the euro zone, the euro came under further pressure yesterday, dropping against sterling, with the pound rising above the €1.14/£1 mark for the first time in several weeks as investors became increasingly concerned over the European debt crisis. An emergency meeting of European Finance ministers over Monday and Tuesday failed to reach any form of plan to restructure Greek debt and Spanish and Italian government borrowing costs spiralled on the bond markets. This saw the euro hit a record low against the Swiss franc for a second straight day and a four-month low against the US dollar on fears that European leaders were failing to prevent the crisis from spreading. Call in now to ensure you set a budget level and take advantage of any large movements.
In the USA, the US dollar gained against the euro and sterling but started to slip against both in late trading as government trade data showed that the USA’s trade deficit widened by more than had been expected in May to hit $50.2bn. The US dollar is being driven by risk related trade and as a result, hit its highest against a basket of currencies in more than three months on uncertainties about the Greek and Italian debt crisis.
Elsewhere, the Canadian dollar fluctuated against it’s the US dollar as the US dollar’s allure as a safe haven currency countered speculation that global growth may suffer as Europe’s debt crisis escalates and the U.S. recovery falters. The Japanese yen (another safe haven currency) also gained broadly – gaining by 1% against the US dollar. Call in now for a live exchange rate.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, the euro came under further pressure yesterday, dropping against sterling, with the pound rising above the €1.14/£1 mark for the first time in several weeks as investors became increasingly concerned over the European debt crisis. An emergency meeting of European Finance ministers over Monday and Tuesday failed to reach any form of plan to restructure Greek debt and Spanish and Italian government borrowing costs spiralled on the bond markets. This saw the euro hit a record low against the Swiss franc for a second straight day and a four-month low against the US dollar on fears that European leaders were failing to prevent the crisis from spreading. Call in now to ensure you set a budget level and take advantage of any large movements.
In the USA, the US dollar gained against the euro and sterling but started to slip against both in late trading as government trade data showed that the USA’s trade deficit widened by more than had been expected in May to hit $50.2bn. The US dollar is being driven by risk related trade and as a result, hit its highest against a basket of currencies in more than three months on uncertainties about the Greek and Italian debt crisis.
Elsewhere, the Canadian dollar fluctuated against it’s the US dollar as the US dollar’s allure as a safe haven currency countered speculation that global growth may suffer as Europe’s debt crisis escalates and the U.S. recovery falters. The Japanese yen (another safe haven currency) also gained broadly – gaining by 1% against the US dollar. Call in now for a live exchange rate.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Tuesday, 12 July 2011
It was a volatile day for the pound yesterday as sterling fell to a 5 month low against the US dollar and hit a 3 month low versus the yen as investors looked for safer haven currencies on fresh concerns over the euro zone. Sterling dropped to $1.59/£1 against the US dollar, but surged against the euro, hitting a high of €1.1368/£1 as investors dumped the euro on concerns that Italy may be next in the queue for an ECB bailout. Out later today there is consumer price inflation data which is likely to show inflation creeping up, which will put mounting pressure on the Bank of England to tighten monetary policy. However, current rhetoric suggests that this will not happen until early 2012 at the earliest. Call in now for a live exchange rate.
In the euro zone, the euro plunged yesterday as concerns grew that the debt crisis in the region could spill over into Italy. In an emergency meeting of European finance ministers, policymakers were meeting to come up with a plan for a second Greek bail out. A Financial Times report that some European leaders would consider letting Athens default on some of its bonds added to market anxiety. The risk of contagion – i.e. the crisis spreading to Italy – was the key driver though and this saw other peripheral bond yields jump. Call in now for a live exchange rate.
It was a volatile day for the pound yesterday as sterling fell to a 5 month low against the US dollar and hit a 3 month low versus the yen as investors looked for safer haven currencies on fresh concerns over the euro zone. Sterling dropped to $1.59/£1 against the US dollar, but surged against the euro, hitting a high of €1.1368/£1 as investors dumped the euro on concerns that Italy may be next in the queue for an ECB bailout. Out later today there is consumer price inflation data which is likely to show inflation creeping up, which will put mounting pressure on the Bank of England to tighten monetary policy. However, current rhetoric suggests that this will not happen until early 2012 at the earliest. Call in now for a live exchange rate.
Elsewhere, Chinese imports grew at the slowest level in 20 months which added to global concern yesterday on the back of the resurgent European crisis and dented commodity backed currencies. Commodity backed currencies like the Australian dollar rely on demand from Chinese industry, and as such they suffered in the wake of the flight to ‘safe haven’ currencies like the US dollar, Swiss franc and yen.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, the euro plunged yesterday as concerns grew that the debt crisis in the region could spill over into Italy. In an emergency meeting of European finance ministers, policymakers were meeting to come up with a plan for a second Greek bail out. A Financial Times report that some European leaders would consider letting Athens default on some of its bonds added to market anxiety. The risk of contagion – i.e. the crisis spreading to Italy – was the key driver though and this saw other peripheral bond yields jump. Call in now for a live exchange rate.
It was a volatile day for the pound yesterday as sterling fell to a 5 month low against the US dollar and hit a 3 month low versus the yen as investors looked for safer haven currencies on fresh concerns over the euro zone. Sterling dropped to $1.59/£1 against the US dollar, but surged against the euro, hitting a high of €1.1368/£1 as investors dumped the euro on concerns that Italy may be next in the queue for an ECB bailout. Out later today there is consumer price inflation data which is likely to show inflation creeping up, which will put mounting pressure on the Bank of England to tighten monetary policy. However, current rhetoric suggests that this will not happen until early 2012 at the earliest. Call in now for a live exchange rate.
Elsewhere, Chinese imports grew at the slowest level in 20 months which added to global concern yesterday on the back of the resurgent European crisis and dented commodity backed currencies. Commodity backed currencies like the Australian dollar rely on demand from Chinese industry, and as such they suffered in the wake of the flight to ‘safe haven’ currencies like the US dollar, Swiss franc and yen.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Monday, 11 July 2011
Sterling strengthened on Friday against the US dollar after much weaker than expected US employment figures saw investors reverse bets against the pound. Sterling had hardly moved earlier in the day when figures showed that UK construction struggled and producer price inflation surged to the highest level since October 2008. There are some key figures out this week – including UK consumer price inflation, unemployment and trade data. With UK inflation at 4.5% in May and most domestic utility companies likely to follow Scottish Power’s lead in hiking tariffs, inflation is likely to top 5% over the summer which is likely to put mounting pressure on the Bank of England to increase rates far sooner than expected. In addition, with the UK economy so reliant on ‘rebalancing’, Tuesday’s trade figures will also be key. Call in now for a live exchange rate.
In the euro zone, the strong surge that the euro saw in the wake of the Greek austerity vote was brought to an abrupt halt last week as credit rating agency Moody’s downgraded Portuguese government bonds to ‘junk’ status. This raised the concern of further ‘contagion’ in the region and left investors concerned. Markets will be keeping a close eye on European finance ministers this week and additionally there are the results of European bank ‘stress tests’ this week which could see some significant movement so ensure you protect yourself by speaking to one of the team sooner rather than later.
In the USA, the US dollar plummeted on Friday afternoon as non-farm payroll figures came in woefully under what had been expected. Markets expected the US economy to add in the region of 100,000 private jobs last month, but the actual figure was only 18,000. This week there is important US economic data in the form of US retail sales and US industrial activity data. Retail sales were flat in May and many are expecting both sets of figures to be quite weak. Call in now for a live exchange rate.
Elsewhere, there is a raft of Chinese economic data being released this week. 2nd Quarter GDP is set to show a slight drop in the pace of economic expansion, with markets expecting a fall from 9.7% to 9.1%. Inflation is also expected to rise and so be wary of volatility in the commodity backed currencies as China is the world’s big buyer of commodities. Call in now to protect yourself.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, the strong surge that the euro saw in the wake of the Greek austerity vote was brought to an abrupt halt last week as credit rating agency Moody’s downgraded Portuguese government bonds to ‘junk’ status. This raised the concern of further ‘contagion’ in the region and left investors concerned. Markets will be keeping a close eye on European finance ministers this week and additionally there are the results of European bank ‘stress tests’ this week which could see some significant movement so ensure you protect yourself by speaking to one of the team sooner rather than later.
In the USA, the US dollar plummeted on Friday afternoon as non-farm payroll figures came in woefully under what had been expected. Markets expected the US economy to add in the region of 100,000 private jobs last month, but the actual figure was only 18,000. This week there is important US economic data in the form of US retail sales and US industrial activity data. Retail sales were flat in May and many are expecting both sets of figures to be quite weak. Call in now for a live exchange rate.
Elsewhere, there is a raft of Chinese economic data being released this week. 2nd Quarter GDP is set to show a slight drop in the pace of economic expansion, with markets expecting a fall from 9.7% to 9.1%. Inflation is also expected to rise and so be wary of volatility in the commodity backed currencies as China is the world’s big buyer of commodities. Call in now to protect yourself.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Friday, 8 July 2011
Sterling slipped against the US dollar and euro on Thursday after the Bank of England kept interest rates on hold at a record 0.5% and investors speculated that it might call on further Quantitative Easing to boost a faltering UK recovery. Manufacturing output rose 1.8% in May, after a 1.6% drop in April
Industrial output, but this did little to change overall market expectations that the Bank of England will leave interest rates at a record low 0.5 percent for some months to come. Market expectations suggest that interest rates will now stay on hold well into 2012, raising the prospect that sterling could be used as a “funding currency” in the same way as the Japanese yen – i.e. borrowed cheaply to invest in higher yielding currencies. This could see sterling plummet over the coming months, so call in now to protect yourself.
In the Euro zone, the European Central Bank increased interest rates by 0.25% as had widely been expected, taking base rates in the region to 1.5%. In addition, the euro gained against the US dollar after ECB President Jean-Claude Trichet eased collateral rules to help local Portuguese banks in the wake of a panic inducing credit rating downgrade earlier in the week. German industrial production came in higher than expected and today is a lighter day for data but call in to prevent any adverse market movements impacting on upcoming payments you may have.
In the USA, strong jobs figures helped investors look to riskier assets and sell the US dollar and as such the US currency dropped. Private sector employment increased last month and the number of people claiming unemployment benefits fell by more than expected which helped boost risk appetite ahead of today’s ‘headline’ non-farm payroll number, which is seen as the major measure of unemployment in the USA. Analysts are expecting to see the number of jobs increase by 90,000 for last month, lending strength to the view that the US recovery is poised for a surge in the 2nd half of 2011. Call in now for a live exchange rate.
Elsewhere, the Australian dollar stalled earlier in the week as the Reserve Bank of Australia kept interest rates on hold and held off from signalling furter rate hikes later in the year. In addition, China raised its own interest rates for the 3rd time this year in an attempt to curb a potential bubble as inflation and growth surge ever onward. This had an impact on riskier currencies, so ensure you protect yourself by speaking to one of the team sooner rather than later.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Industrial output, but this did little to change overall market expectations that the Bank of England will leave interest rates at a record low 0.5 percent for some months to come. Market expectations suggest that interest rates will now stay on hold well into 2012, raising the prospect that sterling could be used as a “funding currency” in the same way as the Japanese yen – i.e. borrowed cheaply to invest in higher yielding currencies. This could see sterling plummet over the coming months, so call in now to protect yourself.
In the Euro zone, the European Central Bank increased interest rates by 0.25% as had widely been expected, taking base rates in the region to 1.5%. In addition, the euro gained against the US dollar after ECB President Jean-Claude Trichet eased collateral rules to help local Portuguese banks in the wake of a panic inducing credit rating downgrade earlier in the week. German industrial production came in higher than expected and today is a lighter day for data but call in to prevent any adverse market movements impacting on upcoming payments you may have.
In the USA, strong jobs figures helped investors look to riskier assets and sell the US dollar and as such the US currency dropped. Private sector employment increased last month and the number of people claiming unemployment benefits fell by more than expected which helped boost risk appetite ahead of today’s ‘headline’ non-farm payroll number, which is seen as the major measure of unemployment in the USA. Analysts are expecting to see the number of jobs increase by 90,000 for last month, lending strength to the view that the US recovery is poised for a surge in the 2nd half of 2011. Call in now for a live exchange rate.
Elsewhere, the Australian dollar stalled earlier in the week as the Reserve Bank of Australia kept interest rates on hold and held off from signalling furter rate hikes later in the year. In addition, China raised its own interest rates for the 3rd time this year in an attempt to curb a potential bubble as inflation and growth surge ever onward. This had an impact on riskier currencies, so ensure you protect yourself by speaking to one of the team sooner rather than later.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Thursday, 7 July 2011
Sterling fell against both the euro and US dollar yesterday as an interest rate hike in China and euro zone peripheral debt worries sent investors seeking safety in the safe haven US dollar. The Bank of England is expected to leave interest rates at a record low of 0.5% later today despite inflation running at more than double its 2% target. Interest rate expectations have been pushed back until at least next year and there has even been speculation that the Bank of England may opt to restart its Quantitative Easing programme to try and stimulate demand in the economy. Call in now for a live exchange rate to avoid losing out if there are any adverse market movements.
In the euro zone, the euro slipped after credit rating agency Moody’s downgraded the Portuguese government debt rating and it slipped to a low against the US dollar this morning as the agency downgraded Portuguese banks’ government backed debt. A widely expected interest rate hike from the European Central Bank on Thursday should lend it support. Greek bondholders are today meeting with officials in Paris to discuss a proposed rollover of the nation’s debt as EU leaders insist that private investors contribute to a new aid package for Greece after last year’s 110 billion-euro ($159 billion) rescue. Call in now to avoid losing out due to any adverse market movements.
In the USA, the US dollar strengthened against most currencies as an interest rate hike by China prompted investors to shed exposure to riskier assets in a market already rattled by a downgrade of Portugal's debt rating to junk status. China’s 3rd interest rate hike of the year saw investors increase demand for safe haven assets, as US non-manufacturing data also dropped on last month. Friday sees US non-farm payrolls figures, which could provide a boost to the US currency if they come in better than expected.
Elsewhere, the Russian ruble slid to its lowest level in a week versus the dollar as oil, Russia’s major export, declined after China’s central bank raised rates. In Thailand, the new PM elect Yingluck Shinawatra stated that the Thai baht will remain as a free floating currency. Call in now for a live exchange rate.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, the euro slipped after credit rating agency Moody’s downgraded the Portuguese government debt rating and it slipped to a low against the US dollar this morning as the agency downgraded Portuguese banks’ government backed debt. A widely expected interest rate hike from the European Central Bank on Thursday should lend it support. Greek bondholders are today meeting with officials in Paris to discuss a proposed rollover of the nation’s debt as EU leaders insist that private investors contribute to a new aid package for Greece after last year’s 110 billion-euro ($159 billion) rescue. Call in now to avoid losing out due to any adverse market movements.
In the USA, the US dollar strengthened against most currencies as an interest rate hike by China prompted investors to shed exposure to riskier assets in a market already rattled by a downgrade of Portugal's debt rating to junk status. China’s 3rd interest rate hike of the year saw investors increase demand for safe haven assets, as US non-manufacturing data also dropped on last month. Friday sees US non-farm payrolls figures, which could provide a boost to the US currency if they come in better than expected.
Elsewhere, the Russian ruble slid to its lowest level in a week versus the dollar as oil, Russia’s major export, declined after China’s central bank raised rates. In Thailand, the new PM elect Yingluck Shinawatra stated that the Thai baht will remain as a free floating currency. Call in now for a live exchange rate.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Wednesday, 6 July 2011
Sterling strengthened against the US dollar and euro yesterday after stronger than expected UK services sector activity data came in better than expected, although further gains looked limited by an overall gloomy outlook for economic growth. Recovering from a 3 month low in May the services PMI data saw sterling jump a cent against the US dollar to hit a session high of $1.6128/£1 beating forecasts of a fall to 53. Recently, poor economic figures had seen investors reduce bets on a stronger pound, so this news came as a welcome surprise. However, the Bank of England is still expected to keep its main rate unchanged at 0.5% on July 7 when it announces its next monetary-policy decision. Out today, there is house price figures so call in now for a live exchange rate.
In the euro zone, the euro dropped for the first time in seven days against the US dollar after credit rating agency Moody’s said that banks rolling over Greek bonds into new securities may incur impairment charges. There is a lot of head scratching going on as to the best way to support Greece and many prospective plans are being shot down by rating agencies. The euro also slipped against the safer haven currencies on concerns over China. Later this week, the ECB is forecast to raise interest rates. Call in now for a live exchange rate.
In the USA, the US dollar strengthened against most other currencies on speculation that China’s efforts to tame inflation will cool growth and dampen demand for riskier assets. China is likely to raise interest rates to combat inflation that may have reached 6.2% in June, according to market estimates. Another option that may be taken is to manipulate the currency peg to allow the Chinese yuan to appreciate and slow the amount of exports by making the prices higher to overseas buyers. Out today there is non-manufacturing PMI in the USA, so call in now for a live exchange rate.
Elsewhere, the Australian dollar weakened as the nation’s central bank left interest rates unchanged. The Reserve Bank of Australia kept its base rate at4.75% for a 7th straight meeting as signs of slower growth from Europe and China dimmed prospects for acceleration in growth. Call in now for a live exchange rate to avoid losing out.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, the euro dropped for the first time in seven days against the US dollar after credit rating agency Moody’s said that banks rolling over Greek bonds into new securities may incur impairment charges. There is a lot of head scratching going on as to the best way to support Greece and many prospective plans are being shot down by rating agencies. The euro also slipped against the safer haven currencies on concerns over China. Later this week, the ECB is forecast to raise interest rates. Call in now for a live exchange rate.
In the USA, the US dollar strengthened against most other currencies on speculation that China’s efforts to tame inflation will cool growth and dampen demand for riskier assets. China is likely to raise interest rates to combat inflation that may have reached 6.2% in June, according to market estimates. Another option that may be taken is to manipulate the currency peg to allow the Chinese yuan to appreciate and slow the amount of exports by making the prices higher to overseas buyers. Out today there is non-manufacturing PMI in the USA, so call in now for a live exchange rate.
Elsewhere, the Australian dollar weakened as the nation’s central bank left interest rates unchanged. The Reserve Bank of Australia kept its base rate at4.75% for a 7th straight meeting as signs of slower growth from Europe and China dimmed prospects for acceleration in growth. Call in now for a live exchange rate to avoid losing out.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Tuesday, 5 July 2011
Sterling strengthened slightly against the euro and US dollar yesterday despite data showing that construction activity fell more than estimated in June, adding to speculation that the Bank of England will keep interest rates at a record low well into next year. The pound gained some support following a report by Recruitment Company Reed that showed UK job creation accelerated in June – particularly in the insurance and engineering sectors. Sterling’s biggest move was against the Australian dollar which slipped following poor figures. Out today, we have UK house prices and services sector activity so call in now for a live exchange rate.
In the euro zone, the euro slipped from one-month highs against the dollar after credit rating agency Standard & Poor's said that a planned ‘debt rollover’ being considered for Greece may put the country into selective default. However, expectations remain for a second Greek bailout in September that helped support the single currency. European Finance ministers meet on July 11 to work on Greece’s next rescue package, after the release of funds over the weekend staved off a default until September. The euro could strengthen further on Thursday if the ECB goes ahead with a planned interest rate hike. Call in now to protect yourself from any adverse market movements.
In the USA, the markets were closed yesterday for the Independence Day holiday which meant trading volumes were very light. This meant that the Canadian dollar was little changed against the US dollar, despite the close correlation between risk appetite and the relative strength of the Canadian currency. Out later this week, we have key non-manufacturing activity figures and non-farm payrolls on Friday. Call in now for a live price.
Elsewhere, the South African rand was on track for the longest run of gains against the US dollar for a year as risk appetite drove demand for the higher yielding ‘riskier’ currency following the approval of the EU payout for Greece. In addition, the Swiss franc fell after retail sales slumped by 4.1% in May from a year earlier. Call in now for a live price.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, the euro slipped from one-month highs against the dollar after credit rating agency Standard & Poor's said that a planned ‘debt rollover’ being considered for Greece may put the country into selective default. However, expectations remain for a second Greek bailout in September that helped support the single currency. European Finance ministers meet on July 11 to work on Greece’s next rescue package, after the release of funds over the weekend staved off a default until September. The euro could strengthen further on Thursday if the ECB goes ahead with a planned interest rate hike. Call in now to protect yourself from any adverse market movements.
In the USA, the markets were closed yesterday for the Independence Day holiday which meant trading volumes were very light. This meant that the Canadian dollar was little changed against the US dollar, despite the close correlation between risk appetite and the relative strength of the Canadian currency. Out later this week, we have key non-manufacturing activity figures and non-farm payrolls on Friday. Call in now for a live price.
Elsewhere, the South African rand was on track for the longest run of gains against the US dollar for a year as risk appetite drove demand for the higher yielding ‘riskier’ currency following the approval of the EU payout for Greece. In addition, the Swiss franc fell after retail sales slumped by 4.1% in May from a year earlier. Call in now for a live price.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Monday, 4 July 2011
Sterling had a poor end to last week, finishing at a 15 month low against the euro as poor manufacturing figures supported the view that the Bank of England would keep interest rates on hold well into next year. Manufacturing figures dropped to a 21 month low, with analysts expecting sterling to remain very sensitive to economic data given that the Bank of England raised the prospect of further quantitative easing if the UK recovery continues to falter. Interest rate expectations have plummeted since January, when markets expected a rate rise as early as April. This week we have a wide array of key data on activity in various sectors of the economy and the Bank of England’s monthly meeting. Whilst they are expected to make no changes, call in now for a live exchange rate to avoid any unexpected movements.
In the euro zone, at the end of an eventful week for the region, euro zone finance ministers approved the release of the next tranche of emergency loans to Greece on Saturday, helping Athens to avoid default until September. As a result, EU finance ministers have now pushed back a decision on a second bail out until then so expect to see peripheral debt take a back seat for the next few months and the focus return to interest rates. This week sees the ECB’s rate decision and ECB President Jean-Claude Trichet is widely expected to raise interest rates by another 0.25%. Debt seems to be off the table again for now, but expect significant uncertainty later in the year.
In the USA, markets are shut today due to the Independence Day long weekend so the currency markets could be quite volatile due to a lack of liquidity. In contrast to the UK, manufacturing figures surprised to the upside on Friday which helped give the US dollar a boost. Later in the week we have factory orders and the major piece of data of the week – non-farm payrolls. US employment data has been poor, so this could be a significant piece of information. In addition, a major issue is the US debt ceiling. With congress unable to agree to increase it we could see
Elsewhere, the Australian dollar slipped from a 7 week high against the US dollar as retail sales and building approvals slipped in May. In addition, inflation fell meaning that the Reserve Bank of Australia is less likely to raise interest rates at this week’s meeting. Call in now for a live exchange rate.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
In the euro zone, at the end of an eventful week for the region, euro zone finance ministers approved the release of the next tranche of emergency loans to Greece on Saturday, helping Athens to avoid default until September. As a result, EU finance ministers have now pushed back a decision on a second bail out until then so expect to see peripheral debt take a back seat for the next few months and the focus return to interest rates. This week sees the ECB’s rate decision and ECB President Jean-Claude Trichet is widely expected to raise interest rates by another 0.25%. Debt seems to be off the table again for now, but expect significant uncertainty later in the year.
In the USA, markets are shut today due to the Independence Day long weekend so the currency markets could be quite volatile due to a lack of liquidity. In contrast to the UK, manufacturing figures surprised to the upside on Friday which helped give the US dollar a boost. Later in the week we have factory orders and the major piece of data of the week – non-farm payrolls. US employment data has been poor, so this could be a significant piece of information. In addition, a major issue is the US debt ceiling. With congress unable to agree to increase it we could see
Elsewhere, the Australian dollar slipped from a 7 week high against the US dollar as retail sales and building approvals slipped in May. In addition, inflation fell meaning that the Reserve Bank of Australia is less likely to raise interest rates at this week’s meeting. Call in now for a live exchange rate.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
Friday, 1 July 2011
Sterling fell to the lowest level against the euro for 15 months as investors betted that UK interest rates will stay low in the near term. It capped a poor week for the pound, which struggled across the board after investors pushed back expectations for interest rate hikes to at least the middle of next year. UK year on year GDP figures were revised downwards this week and Thursday saw UK consumer confidence and mortgage demand drop, further denting the UK recovery’s prospects. Sterling is being damaged against both the US dollar and euro – despite the ongoing debt saga in Greece. It is week’s like this that prove how counter-intuitive currency market movements can be and why it is always important to protect yourself against movement at the earliest opportunity. Call in now for a live exchange rate.
At the end of a turbulent week for the euro zone, the euro gained towards the end of the week as the Greek parliament approved a series of austerity measures to cut the country’s monumental deficit. Amidst violent protesting for most of the week, there had been concern that PM George Papandreou would lose a vote of confidence earlier in the week, but this did not happen. Further bailout finance for Greece was dependant on the measures being passed and as a result, a short term default has been avoided which saw investors regain (some) confidence. The country is still not out of the woods, so ensure you speak to a trader to take advantage of any volatility.
In the USA, it was a relatively positive week for data with a surprising boost from housing data that showed pending home sales rebounding from -11.3% to hit 8.3% last month. In addition, US jobless claims fell by 1,000 to 428,000 in the week ended June 25. One concern this week was the USA’s national debt that reached a self imposed $14.2 trillion ceiling. Congress must approve an increase in this ceiling over the coming month or face the daunting prospect of defaulting on an interest payment. Call in now for a live price.
Elsewhere, the South African rand rose against the dollar for a fourth day as chances of a default by Greece subsided, boosting demand for riskier assets. Bonds gained as credit and inflation data spurred bets rates won’t rise this year. The New Zealand dollar also gained as business confidence and home-building improved.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
At the end of a turbulent week for the euro zone, the euro gained towards the end of the week as the Greek parliament approved a series of austerity measures to cut the country’s monumental deficit. Amidst violent protesting for most of the week, there had been concern that PM George Papandreou would lose a vote of confidence earlier in the week, but this did not happen. Further bailout finance for Greece was dependant on the measures being passed and as a result, a short term default has been avoided which saw investors regain (some) confidence. The country is still not out of the woods, so ensure you speak to a trader to take advantage of any volatility.
In the USA, it was a relatively positive week for data with a surprising boost from housing data that showed pending home sales rebounding from -11.3% to hit 8.3% last month. In addition, US jobless claims fell by 1,000 to 428,000 in the week ended June 25. One concern this week was the USA’s national debt that reached a self imposed $14.2 trillion ceiling. Congress must approve an increase in this ceiling over the coming month or face the daunting prospect of defaulting on an interest payment. Call in now for a live price.
Elsewhere, the South African rand rose against the dollar for a fourth day as chances of a default by Greece subsided, boosting demand for riskier assets. Bonds gained as credit and inflation data spurred bets rates won’t rise this year. The New Zealand dollar also gained as business confidence and home-building improved.
Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/
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