Smart Currency Rates and Comments 30th November 2012 - Euro getting stronger, call Smart to get the latest news

Sterling

Increased risk appetite seems to have driven the market over the last 24 hours as we have seen sterling weaken towards 1.23 against the euro and push over 1.60 against the US dollar. Over the course of the week, sterling has some ups and downs as the global focus on the situation with Greece and the looming fiscal cliff in the US has led to market uncertainty and volatility. The main news from the UK was the surprise decision that the Governor of the Bank of Canada Mark Carney would be taking over from Mervyn King in July 2013 as the Governor of the Bank of England. The revised GDP data released confirmed that the UK's economy has excited the double-dip recession, with the revised figures matching the preliminary data showing GDP increased by 1% in the third quarter and this helped sterling to strengthen. Please call in to get a detailed update from your trader.

Euro

The main news out of Europe this week was that the European finance ministers had agreed to give Greece the next of its bailout to the tune of €44 billion. In addition they agreed to ease the strict measures that were in place, effectively removing €40 billion pounds worth of debt. The markets produced a muted response as traders were left unimpressed by the actions taken at the Eurogroup meetings and worries spread surrounding how a deal on Greece is going to be implemented, as well as requiring further assistance beyond the new aid package. However on Thursday we saw increased risk appetite which helped support the euro even though the German unemployment data released, although in line with expectations, showed that it continued to increase. The President of the ECB is speaking today and a data showing the region wide rate of unemployment will also be released. Call in now to see how this affects the market.

US dollar

Over the last 24 hours we have seen increased risk appetite weaken the US dollar. During the week the US dollar had stayed fairly range bound. The increased risk appetite came as a result of GDP data coming out at 2.7%, slightly below expectations; but, showing a strong rise from last quarter's 2% reading highlighting steady growth in the US economy. The number of homes pending sale came out much higher than market expectation; but the number of new homes actually sold fell slightly short of analyst’s predictions. Optimism that the so-called Fiscal cliff could be resolved created risk appetite in the market; but, comments from one of the House Speaker said that the President needed to “get serious” underlines the fragile nature of the situation. In addition, this week we have also seen positive data released in the form of an increase in the demand for durable goods throughout October and US consumer confidence reaching a four year high in November. Get in touch now to take advantage of the most up to date price.

Worldwide
 
Elsewhere, the Japanese yen performed well this week reaching a one week high against the US dollar. The higher yielding currencies had a mixed week as an increase in risk appetite followed the Greek-aid decision and the optimism that the US fiscal cliff would be resolved with the South African rand hitting a two-week high yesterday; however, the Australian dollar struggled yesterday as investors speculate that interest rates could be cut in the near term.  Monthly GDP data released from Canada will be the main release today and Manufacturing Purchasing Managers' Index (PMI) from China will be released on Saturday. Call in now to speak to a trader.

Smart Currency Rates and Comments 29th November 2012 - Sterling in the doldrums

Sterling

Sterling struggled yesterday against the higher yielding currencies whilst staying relatively range bound against the US dollar and the euro.  Yesterday, one of the members of the Bank of England suggested that the central bank had not ruled out an increase in quantitative easing if it was necessary to boost the UK’s economy.  Data released from the UK showed that lending to individuals fell by £0.3 billion in October, but, on a more positive note the number of mortgages approved reached a 10 month high.  The Governor of the Bank of England is speaking today and we will also see the release of the central bank's financial stability support, both of which should provide some insight into the state of the UK’s economy.  Please call in to get a detailed update from your trader.

Euro

The euro fell broadly yesterday, as risk appetite decreased due to worries surrounding how a deal on Greece is going to be implemented, as well as requiring further assistance beyond the new aid package. Germany is preparing to vote on this new deal for Greece, with the German Finance Minister open to providing further support. However, the cautionary approach in dealing with the crisis continues to dampen the appeal of the single currency. The German preliminary consumer price index figures came out as expected showing a small decline but the money supply figures came out higher than forecast. Today we see the release of German unemployment data as well as the President of the Deutsche Bundesbank is also speaking. Given the importance of Germany to the Euro zone these will be carefully scrutinized and if anything unexpected occurs volatility is likely to be seen. Call in now.

US dollar

The US dollar struggled yesterday as concerns about the impending fiscal cliff returned to the fore. The co-chairman of Obama's 2010 fiscal commission has previously said he sees only a one in three chance that a deal will be reached between the president and Congress in time. The weakening was exaggerated by weaker than expected home sales results. Today sees the release of further home sales data as well as quarterly GDP data which will be very influential.  Forecasts are for growth of 2.8%, if they are right, expect dollar to regain the lost ground, however the downward trend will surely continue if this figure isn't met. Get in touch now to take advantage of the most up to date price.


Worldwide
 
Elsewhere, the biggest mover yesterday was the Japanese yen, reaching a one week high versus the US dollar, and managing to snap a prolonged decline against its major trading partners. News coming out of the US that an agreement on how to handle the so-called fiscal cliff remains someway off, led to a significant increase in the demand for traditionally safer assets. The Australian dollar remained subdued following Tuesday's decline, as speculation remains rife that the economic outlook is not as healthy as previously thought dampened appetite for the higher yielding currency. Overnight we saw retail data released from Japan, along with an indication of business confidence from New Zealand. Call in now to see how this has influenced the markets and to get a live rate.

Smart Currency Rates and Comments 28th November 2012 - Euro zone debt worries still to the fore

Sterling
Yesterday showed that sometimes it is better to travel than arrive. Agreement was finally reached on releasing the next round of Greek bailout funds of €44 billion but the effect on the euro was somewhat muted. In fact sterling performed better against most of the other major currencies yesterday even  recovering back to 1.24 against the euro. The revised GDP data released yesterday confirmed that the UK's economy has excited the double-dip recession, with the revised figures matching the preliminary data showing GDP increased by 1% in the third quarter and this helped sterling to strengthen. There was also speculation that the new agreement terms set out by European finance ministers are too lenient and will fail to stem Greece's debt crisis. There is no significant data being released from the UK today; as a result, the focus will be on Greece and the worries surrounding the looming fiscal-cliff in the US. Please call in to get a detailed update from your trader.

Euro

The euro struggled yesterday despite a deal being struck on Monday night by the Eurozone finance ministers to ease the strict measures that are in place for Greece to receive the next tranche of its bailout funds. Many economists expected this news to cause the euro to strengthen; however, the opposite happened. This muted response from the markets suggests that traders are unimpressed by the actions taken at the Eurogroup meetings and that investors remain concerned that this new deal for Greece is not the solution; as a result, the euro was sold off. There is little significant data out from Europe today; but, any more news or rumours surrounding Greece could cause rapid price action. Call in now to see how this affects the market.

US dollar

The US dollar remained fairly range bo und against most of the other majors yesterday despite positive data coming out of the US. We saw the demand for durable goods on order in October increase the most in five months, along with consumer confidence reaching a four year high in November. Today new home sales figures will be released and will give us a good insight into the health of the US economy, resulting in its wide reaching effect. Get in touch now to lock in a price.

Worldwide
Elsewhere, it was a mixed day yesterday for many of the higher-yielding currencies. News that Eurozone ministers had finally reached an agreement over the next tranche of Greek bailout led to an increase in risk appetite, resulting in the Australian dollar touching a two month high on the back of the news. It was also good news for the New Zealand dollar, managing to snap its decline as data suggested that the Asian market is not as troublesome as previously thought. However belief later in the day that the Greek debt deal is not as robust as first thought led to a sense of risk-aversion in the markets, undoing many of the gains seen earlier in the day. The South African rand also struggled as news the nation's debt will be included in the World Government Bond Index led to belief that the rand will remain one of the most volatile of currencies. Call in now to speak to a trader.

Smart Currency Rates and Comments 27th November 2012 - A good day for Greece, will it be good for the euro?

Sterling

Sterling weakened slightly yesterday, slipping to 1.2330 against the euro before recovering in the afternoon and remaining relatively range bound against the majority of currencies, although, following the overnight decision to release the bailout funds to Greece we have seen the US dollar weaken on increased risk appetite. The main announcement from the UK yesterday was the surprise decision that the Governor of the Bank of Canada Mark Carney would be taking over from Mervyn King in July 2013 as the Governor of the Bank of England. The hope is that when he takes charge of the central bank he can help get the UK economy back on track. Revised quarterly GDP data released today is expected to match the preliminary reading at 1% growth, although some economists think there could be a slight downward revision. Please call in to get a detailed update from your trader.

Euro

The euro had a fairly mixed day yesterday before ultimately remaining range bound against its major trading peers. Overnight the next tranche of the Greek bailout of €44 billion was agreed to by the European finance ministers. Although this is clearly a very positive step for both the euro zone and Greece, initial market reaction has been muted which is probably due to the high level expectancy that agreement would be reached following last week's meeting. German Consumer Climate data that came out yesterday was worse than expected, suggesting financial confidence is falling in the Eurozone's powerhouse. Today sees very little data released.. Call in now to see if the agreement on Greece has had a delayed effect on the euro exchange rate and to get a live price.

US dollar

The US dollar remained fairly tightly range bound against its major peers yesterday, with relatively little data being released anywhere in the world. Today is unlikely to be as calm, with a range of data being released over the afternoon. Monthly Durable Goods sales, and Consumer Confidence data are likely to be the most influential. Last month saw a swing to the positive after a series of poor results, if this month's data is equally positive we could see dollar move on the announcement. Get in touch now to lock in a price.

Worldwide

Elsewhere, the biggest gainer yesterday was the Japanese yen due to a slight shift in risk aversion and as minutes from the Bank of Japan was released. The Philippine peso reached a four year high against the US dollar, whilst the Czech koruna, Norwegian krone and Polish zloty also all performed well. Inflation expectation and trade balance data was released from New Zealand overnight; but, little else is dues to be released today. Call in now to speak to a trader.

Smart Currency Rates and Comments 26th November 2012 - Will the euro stay in the ascendancy?

Sterling

Sterling had a mixed day on Friday. It strengthened against the US dollar but weakened against the euro and commodity backed currencies as risk appetite drove the market. At one stage sterling even pushed down to 1.233 against the euro and with the possibility of further weakness we could see a push towards the 1.225 level. Revised quarterly GDP data released this week will be the most significant announcement and is expected to match the preliminary reading at 1% growth. On Thursday various lending data is released with the household borrowing figures for October expected to show that the credit supply continues to loosen. With not much else released from the UK this week, sterling’s relative strength will take its lead from news produced elsewhere, with US data and the Eurogroup meetings likely to cause the most volatility. Please call in to get a detailed update from your trader.

Euro

The euro performed well on Friday after better than expected business climate data from Germany showed that economic health had increased for the first time in seven months. The lack of negative data coming from the Eurogroup meetings also kept the euro strong. We should finally see a resolution of the Greek debt question that rumbled on through last week, which in theory will be good news for the economic future of the union and could cause the euro to strengthen further still as confidence increases in Europe. The other main release this week will be the Italian benchmark 10-year bond auction; but, the main focus of the global market will be firmly on today's Eurogroup meetings. Get in touch now while the euro remains strong.

US dollar

The US dollar lost ground against most of the other majors on Friday as risk appetite increased due to the renewed confidence in Eur ope off the back of positive progress with Greece and better than expected data released from Germany. Late Friday we saw the US dollar increase to over 1.60 against sterling. This week we have some significant data coming out of the US, in particular on Thursday with the release of GDP data for the third quarter. Other data includes durable goods orders which are a leading indicator of production, consumer confidence and other housing data. Call in now to reserve a rate of exchange.

Worldwide

Elsewhere, Canadian inflation data released on Friday was slightly better than expected posting a figure of 0.3%. The Russian rouble strengthened as demand was high to pay for taxes in Russia and the South African rand also performed well. This week, the main releases include Canadian GDP, Chinese manufacturing PMI and business confidence data from New Zealand. Call in now to speak to a trader.

Smart Currency Rates and Comments 23rd November 2012 - Sterling under pressure against the euro

Sterling

Sterling fell to a near four week low against the euro yesterday weakening below the key 1.24 level. This followed a report from the Confederation of British Industry (CBI) which stated that the manufacturing sector has continued to underperform and was at the lowest level for 10 months. The Monetary Policy Committee meeting minutes revealed the members voted 8-1 against an increase in quantitative easing with one member voting for a £25 billion increase. The Public sector net borrowing figures released showed that public borrowing had unexpectedly increased by £2.7 billion compared to this time last year. There is very little data released from the UK today but clearly sterling is under pressure against the euro and if it loses further ground we could soon find ourselves at 1.225 against the euro. Despite the US markets reopening following the Thanksgiving bank holiday, trading volumes a re still expected to be thin as the US wakes up with a hangover. Please call in to get a detailed update from your trader.

Euro

Aside from the 0.5% hiccup on Wednesday following the surprise outcome of the Eurogroup meeting where no agreement was reached on Greek debt, the euro has had a fairly strong week – gaining over a cent against sterling during the course of the week and closing yesterday close to the key support level of 1.235. The euro strengthened, driven up by assurances from the German finance minister that the Greek debt problem will finally be removed next week, as only “technical issues” had prevented an agreement on Tuesday night. Better than expected French and German manufacturing data helped the euro continue to strengthen yesterday, further counteracting the negative pressure caused by the news from earlier in the week that France's debt had been downgraded by Moody’s (one of the big three credit rating agencies). There was also a successful auction of Spanish government debt which underlines market confidence in the euro. Today sees the release of an influential German business climate survey, results have been weaker than expected in recent months. If results are positive it could support further strengthening of the euro, but expect sensitivity as the EU budget meetings continue. Markets could take a hit if the Anglo-German lead group of net contributors succeeds in its calls for a freeze on budgets. Call in now to take advantage of the strong euro.

US dollar

The US dollar struggled this week as global confidence grew over the prospect of a deal on Greece-aid being met and following news that Barack Obama is increasingly hopeful of reaching an agreement to help evade the looming Fiscal Cliff. On the data front, better than expected housing data included Home Sales figures which came out at 4.79 million between October and November and the number of building permits issued increased in October, keeping the housing starts at its highest level since July 2008. Other releases included the weekly jobless claims data and manufacturing Purchasing Managers' Index (PMI) which came in above market expectations. One negative were the figures which showed that consumer sentiment has dropped from last month. With the Thanksgiving bank holiday celebrations over from yesterday, the US goes back to work today; however, very little significant data is due to be released. Call in now to speak to a trader.

Worldwide
Elsewhere, Chinese Manufacturing PMI data released yesterday was one of the bigger stories this week, expanding for the first time in over a year which increased risk appetite worldwide. Perhaps China's economy will have a soft landing rather than the much feared hard landing. The South African rand struggled this week falling to a 3-year low versus the US dollar, retreating to just over 9.00; the lowest level since April 2009. The Swedish krona had a turbulent week as it was forecast that the central bank would cut interests rates by 0.25% next month and then by a further 0.25% in February 2013. The Australian dollar also struggled yesterday as traders started to speculate that the Reserve Bank of Australia could look to cut interest rate in the short term. The main release today will be the Canadian inflation data; but, there is not much other data expected to be announced; call in now to reserve a rate of exchange.

Smart Currency Rates and Comments 22nd November 2012 - Thanksgiving today so Europe will remain the focus

Sterling

Sterling had a mixed day, with volatility high in the early hours of the morning with the Eurogroup meeting dragging on, and no distinct resolution to the Greek situation forthcoming.  The Monetary Policy Committee meeting minutes surprised some economists as the members voted 8-1 against an increase in quantitative easing with one member voting for a £25 billion increase, when most people had been predicting a 9-0 vote.  The Public sector net borrowing figures releases showed that public finances are in a grim state of affairs, with public borrowing unexpectedly £2.7 billion higher than this time a year ago. There is very little data released from the UK today and with the US markets shut, the global focus will remain on Europe. Please call in to get a detailed update from your trader.

Euro

After taking a hit over night, dropping 0.5% in a few hours, euro rallied to regain those losses during the day. The European finance ministers failed to come to an agreement over how to finance the next tranche of Greek bailout, and that a new meeting is to take place next week which caused the euro to initially weaken.  These fears were allayed somewhat as German Finance Minister explained that it was only technical issues that prevented a final agreement.  What these “technical issues” actually are, is another question altogether. Today could see some volatility as markets react to French and German manufacturing data released in the morning. The EU Economic Summit also starts today, so expect markets to remains nervous as traders await announcements on the contentious issue of the EU budget, any whisper of David Cameron using the British veto could hit prices hard. Call in now to get the latest price.

US dollar

The US dollar had a strong start to the day as risk appetite dominated the market due to the lack of resolution on the Greek problem from the Eurogroup meetings. On the data front, weekly jobless claims data and manufacturing Purchasing Managers' Index (PMI) came in above market expectations; however, figures released showed that consumer sentiment has dropped from last month. It is the Thanksgiving bank holiday in the US today, meaning the US markets are shut and no data will be released? As a result, trading volumes will be much lower than usual. Call in now to speak to a trader.

Worldwide

Elsewhere, the biggest mover yesterday was the South African rand, losing significant ground against major peers as continued speculation about a Greek bailout dampened risk-appetite. With European exports key to the nation's economy, the troubled outlook saw the rand fall to a 3-year low versus the US dollar, retreating to just over 9.00; the lowest since April 2009. It was also a difficult day for the Australian and New Zealand dollars; with increased risk aversion reducing the demand for such higher-yielding assets. The situation was worsened on the news that declining Japanese imports were likely to affect output in the both countries which also caused the Japanese yen to be sold off sharply. Call in now to see if the situation improves and to get a live rate.

Smart Currency Rates and Comments 21st November 2012 - A Greek tragedy in the making? Hopefully not…

Sterling

Sterling gained ground this morning against the euro following the inability overnight of the Eurogroup to agree on Greece's debt reduction programme. Truly remarkable how politicians can prevaricate while business confidence seeps away. Today’s Monetary Policy Committee meeting minutes will be the main release and whilst most economists are forecasting that there was a 9-0 vote against increasing quantitative easing, any variation away from this prediction is likely to cause volatility in the market. Other data released today includes the public sector net borrowing figures which are currently expected to show a significant reduction in the government's borrowing requirement from the previous month. Please call in to get a detailed update from your trader.

Euro

Following the surprise outcome of the Eurogroup meeting where no agreement was reached on Greek debt, the euro has lost ground against both sterling and the US dollar. Yesterday the main news was that France's debt had been downgraded by Moody’s, to match Standard and Poor’s investment rating, underlining the fragility of the French economy and the state of the Eurozone in general. However the euro did reach a 2 week high against the US dollar on the belief that the Eurogroup meetings would find a solution to the Greek aid gap and would grant Greece the next tranche of its bailout. How wrong the market was. The main release today will be the German benchmark 10 year bond auction and it will be interesting to see how much demand there is for this safe haven asset. Call now to book a price.

US dollar

The US dollar has a mixed day yesterday as the markets kept a close eye on Europe and following the release of data showing that the number of building permits issued in the US has increased in October, keeping the housing starts at its highest level since July 2008. This positive data helped spark an increase in global confidence and as a result risk aversion dropped off. Today, we have the weekly jobless claims data being released a day early due to Thursday’s Thanksgiving bank holiday in the US. Other data released includes the manufacturing Purchasing Managers' Index (PMI) and consumer sentiment figures. Call in now to speak to a trader.

Worldwide

Elsewhere, the Swedish krona was the worst performing currency yesterday as it was forecast that the central bank would cut interests rates by 0.25% next month and then by a further 0.25% in February 2013. The Australian dollar also struggled yesterday as traders start to speculate that the Reserve Bank of Australia could look to cut interest rate in the short term. The Japanese yen was slightly softer as traders start to speculate that the Bank of Japan’s may look to boost the economy by injecting more money into it. This is despite the central bank voting to keep quantitative easing on hold for the time being. There is not much data expected to be released throughout the day; but, call in now to reserve a rate of exchange.

Smart Currency Rates and Comments 20th November 2012 - Smart Currency Rates and Comments 20th November 2012 - A period of relative calm for sterling, will it last?

Sterling

Sterling struggled yesterday in the absence of any significant UK data being released, weakening off against the majority of currencies as risk appetite became the main driving force in the market. It is another quiet day for data in the UK today. The global focus will be firmly on the Eurogroup meeting today and the decision, if there is one, on Greek-aid. So pending any real catalyst to move sterling one way or the other we seem to be in a period of stability for sterling for the short term. Call in now to speak to a trader.

Euro

The euro enjoyed a day of gains yesterday as a report suggested that the Eurozone finance ministers will today give the go-ahead for a 44 billion euro aid payment to Greece.  While the decision really amounts to little more than kicking the Greek debt problem further down the road, market nervousness will at least reduce down if the official announcement is made. As such, you might expect the euro to consolidate its gains as little other data will be released from Europe. Call now to book a price.

US dollar

The US dollar struggled yesterday, losing ground against all major trading peers as a fall in risk aversion decreased demand for the safe-haven currency. News that Barack Obama is increasingly hopeful of reaching an agreement to help evade the looming Fiscal Cliff led to a sense of increased global confidence and a demand for riskier assets. We also saw the release of better than expected Home Sales data, coming out at 4.79 million between October and November which boosted market confidence. Today will see building permits data released for the same period and the markets will hope for a repeat of yesterday’s positive release. Call in now to see if the dollar will recover and to get a live rate.

Worldwide

Elsewhere, the Czech koruna, Hungarian forint and Polish zloty were the stand out performers yesterday as risk appetite drove the market.  The Hungarian forint was particularly strong following better than expected third quarter public debt figures being released. Overnight, and first thing this morning we have had the Monetary Policy Meeting minutes from Australia and the Governor of the Reserve Bank of Australia was also speaking. Furthermore, the Bank of Japan had its monthly meeting, press conference and interest rate decision. There is not much else released throughout the day; but, call in now to reserve a rate of exchange.

Smart Currency Rates and Comments 19th November 2012 - Smart Currency Rates and Comments 16th November 2012 - Where to next for sterling?

Sterling

Sterling performed relatively well against the majority of currencies on Friday, helping to erase some of the losses seen earlier in the week. Growing speculation that the Bank of England is likely to increase quantitative easing to help boost the economy had seen sterling fall against the euro and US dollar throughout the week. On Wednesday we will have the minutes of the last meeting of the Monetary Policy Committee released and we will see if the markets speculation has some substance. This week sees little data released from the United Kingdom apart from on Wednesday when we have public finances data released. Expectations are for a significant reduction in the government's borrowing requirement from the previous month. Please call in to get a detailed update from your trader.

Euro

The euro struggled on Friday as concerns about Greece and Spain were at the forefront of traders’ minds once more. In theory the Greek question should be resolved this week with the Eurozone finance ministers meeting on Tuesday expected to come to a decision as to how they will finance the recent debt extension, as well as renegotiating long term targets. Last week's announcement that Europe has slipped back into recession is likely to continue to affect the general trend. Expect to see prices react to manufacturing data from France and Germany, the core of Europe with forecasts being for a small decrease on last month. Get in touch now to lock in a price.

US dollar

The US dollar was one of the best performing currencies on Friday due to its safe haven status as markets remain cautious due to the looming fiscal cliff and the on-going problems in Europe. Data released showed that industrial production had fallen by 0.4% when slight growth had been expected. This week’s main releases includes existing home sales, building permits, unemployment benefits and the Chairman of the Federal Bank is also speaking. Until we have some resolution regarding the so-called fiscal cliff, the situation in Greece and a potential Spanish bailout, one would expect the US dollar to remain relatively strong; but, there are no certainties in such a volatile market. Call in now to speak to a trader.

Worldwide

Elsewhere, the South African rand was the best performing currency on Friday strengthening against all of it major counter parts. The Swiss franc struggled following comments from the Chairman of the Swiss National Bank stating that the overvalued franc was damaging the economy. Overnight we saw inflation data from New Zealand come out much lower than expected and later this week we will see the release of the Monetary Policy Meeting minutes from Australia and the Governor of the Reserve Bank of Australia is also speaking. Japan’s central bank meets on Tuesday morning, there will be retail sales figures and inflation data from Canada and Chinese manufacturing PMI will also be announced. Call in now to reserve a rate of exchange.

Smart Currency Rates and Comments 16th November 2012 - Not a great week for sterling

Sterling has struggled this week following comments from the Bank of England’s suggesting growth will be tepid over the next couple of years due to a struggling export market. Inflation data came out higher than expected with a reading of 2.7% underlining the “pinch” that consumers across the country are experiencing. More bad news came as the number of people claiming unemployment benefits was much greater than anticipated and retail sales dropped sharply by 0.8% from last month 0.5% growth. Moody’s (one of the big three credit rating agencies) also suggested that the UK could have its credit rating downgraded next year if the economy continues to struggle. Please call in to get a detailed update from your trader.

It has been a mixed week for the euro this week, with Greek uncertainty weighing heavily on prices through the early part of the week. The tide turned on Tuesday, however, and the euro strengthened despite poor Economic Sentiment data from Germany. The euros improvement continued through the week, backed up with some good news from France and Germany, but it is hard to know how much longer it will last. Yesterday Eurostat (the European Statistics Office), announced that the Eurozone saw a second quarter of decrease and is officially in a double dip recession. Furthermore, the IMF is now expected to reach an agreement over Greece next week. Get in touch now to lock in a price.

The US dollar has remained fairly range bound this week off the back of some poor data being released. Hurricane Sandy was the main influencing factor in the drop in US retail sales; however, the unexpected decrease in the produce price index and increase in unemployment claims highlights the US recovery has still some way to go. We saw a 0.1% increase in the consumer-price index indicating that US inflation is in line with the economy. There is no significant data released today; but, the markets remain nervous due to the problems in Europe, call in now to reserve a rate of exchange,

Elsewhere, the Japanese yen has struggled this week; losing ground against all major peers. Expectations that next month's Japanese elections will lead to more aggressive monetary easing led to the yen hitting a 6-month low versus the US dollar. The Australian dollar also struggled, falling against most of its biggest trading partners after the country's Reserve Bank increased sales of the dollar to other foreign central banks. The South African rand fell for a fifth day, reaching the lowest level in over 5 weeks as investors interest in the currency dropped as violent protests erupted in the Western Cape. Call in now to see if the decline continues and to get a live rate.

Smart Currency Rates and Comments 15th November 2012 - Bank of England thinks sterling is overvalued

Sterling hasn’t got many fans at the moment including it seems the Governor of the Bank of England. In yesterdays inflation report he highlighted how sterling’s appreciation over the last year, it has risen by 8% on a trade weighted basis, has been detrimental to the competitiveness of the UK’s exports. The knock on effect of all this is that UK growth will, in the view of the BoE, be tepid over the next couple of years. Today we have retails sales data where the expectations are for increases not quite as good as the previous month but still reasonable given the state of the economy. Anything less than expectation will undermine sterling. Call in now to get an update and the latest rates.

The euro appreciated against sterling yesterday which is probably a surprise given all of its problems. I think it highlights how negative the BoE report was. Yesterday we had the coordinated strikes throughout the Euro zones southern states highlighting how counter productive the austerity measures were being viewed and the message does seem to be getting through as the European Union has now begun to publically soften its stance on austerity. This could be good news if Spain was now able to ask for the European Central Banks help without having to implement further austerity cuts as it would help business confidence.  Today we see the release of Euro zone wide GDP figures which are expected to highlight that this lack of business confidence is beginning to hurt the likes of Germany as well. Call in now to get the euro exchange rate.

The US dollar dropped slightly against most other currencies yesterday as US retail sales fell in October for the first time in four months, influenced by Hurricane Sandy. In addition the produce price index unexpectedly dropped in October off the back of a decrease in energy and vehicle costs. Clearly the recovery in the US is not going to be easy and risk aversion is still a major factor and is likely to be the major influencer over the US dollar exchange rate in the short term. Inflation and unemployment claims data are on the agenda today. Get the latest now by calling in.

Elsewhere, the biggest mover of the day was the Japanese yen, losing ground against all major peers and losing the most it has in 8 months against the US dollar. News that the Japanese Prime Minister will dissolve parliament led to significant uncertainty in the region, and decreased demand for the currency. The South African rand also struggled, falling to a five week low on increased concern that a decline in metal exports following the mining crisis seen last month will widen the nation's current-account. Overnight we see the release of manufacturing data from New Zealand, and inflation expectations for Australia. Call in now to see how this impacts the currencies and to get a live rate.

Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/

Smart Currency Rates and Comments 14th November 2012 - Uncertainty in Europe, will this benefit sterling?

Sterling had a steady day yesterday against most currencies although it did enjoy a short period of strengthening against the euro in the morning only to give back the gains it made in the afternoon. The inflation data released was higher than expected at 2.7% which was a surprise to the market place but probably not to those of us who see our energy and food bills continue to rise. Today we have the Bank of England’s inflation report which will be carefully scrutinized in an effort to identify if the BoE believes there is a short term need for further quantitative easing. Please call in to get a detailed update form your trader.

The euro continues to hover around the 1.25 level against sterling. As mentioned yesterday the final decision to lend further bailout funds to Greece has yet to be made and it appears that there are some differences of opinion on certain key matters by the parties who make the decisions. Not helpful in restoring business confidence as is the continued delay by the Spanish government in asking for further help from the European Central Bank. Perhaps the decision will be taken out of their hands as we continue to see the yield on Spanish government debts increase and getting close to levels viewed as being unsustainable. The measure of investor’s expectations for the German economy released yesterday came in worse than expected which highlights further how the power house of the Euro zone economy is beginning to suffer. For the latest rate please call in.

Although the US dollar has been the ascendancy it was fairly range bound yesterday with a lack of data being released. Today we have the following data released; core retail sales data, the producer price index and advanced retail sales data. I think it reasonable with the uncertainty in Europe and the problems with debt ceilings and fiscal cliffs at home we will see short term the US dollar benefit from increased risk aversion. Get an update by calling in.

Asian currencies had a quiet day yesterday apart from the Chinese Renminbi which benefited from the pickup in the Chinese economy. This also benefits the Australian economy and dollar as well.

Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/

Smart Currency Rates and Comments 13th November 2012 - Difficult start to the week for sterling, will it improve?

A difficult start to the week for sterling losing ground against most currencies and just about holding its own against the euro. Inflation data in the form of the Consumer Price Index is out today and the expectation is for a small increase to 2.3%. The markets will be watching to see if comments accompanying the statement increase the possibility of further quantitative easing from the Bank of England. If they do then we could see further weakness from sterling. Call your trader for the latest rates and update now.

Even though the Greek government voted through their 2013 budget on Friday including the required austerity cuts there is still doubt that all is finally agreed and that the next bailout funds will be released. Another example of political brinkmanship replacing common sense which continues to erode business confidence in the Eurozone. Today we see the release of German economic sentiment data, along with reports and data from yesterday's Eurogroup meeting of Finance Ministers. So we can expect the markets to remain uncertain so please call your trader now for the latest updates and rate.

The US dollar continues to be in the ascendancy gaining over two cents against sterling and the euro over the last couple of weeks and investors seem to be of the opinion that this will continue. We saw better than expected data coming out of the US yesterday in the form of core retail sales increasing 1.1% in September. Inflation data is on the agenda today. As noted the US dollar is very much in the ascendancy at the moment so please call your trader for the latest price.

As mentioned we have seen sterling lose ground against most currencies especially the Australian and New Zealand dollars. This is slightly surprising because usually when we see the US dollar strengthening it is on the back of risk aversion which is usually bad for these particular currencies. Perhaps we are seeing a change in the short term correlation between these currencies and as such will require careful monitoring.

Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/

Smart Currency Rates and Comments 12th November 2012 - Lots of problems everywhere, will sterling benefit?

A difficult week ahead in the currency markets. Since the start of Friday of last week we have seen risk aversion increase significantly as worries over Greece’s debts and the US fiscal cliff increase. There is also a raft of data released during the course of this week. Here in the UK we have inflation data for October released and the expectation is for it to be similar to last months at around 2.3 per cent. What will be of great interest to investors will be the accompanying comments from the Bank of England as this may give some background as to why they kept quantitative easing on hold at there meeting last week. We also have retail sale data released on Thursday and the expectation is for a fall from the previous month but for there still to be reasonable growth. There is a lot happening this week and plenty of scope for rapid movement in exchange rates either way. So please call your trader now to get the latest update and rates.

Greece has come to the fore again. Their parliament voted over the weekend for next year’s budget and further austerity cuts. However it appear that they are in desperate need of some short term funds to pay debts and that the required funds aren’t immediately available so we could well see some high stake brinkmanship this week. We also have a whole raft of Euro zone economic data released this week with the main release being the third quarter GDP figures. Expectations aren’t high so hopefully there won’t be a surprise to the downside. Eurogroup finance ministers meet today so expect nervousness in the markets in anticipation of leaks of potentially influential information. Get in touch for a live quote and the latest news on the euro.

The US dollar continues to be the main beneficiary of the increased risk aversion having gained a couple of cents against sterling in the last week or so. There are two main worries in the US. We are fast approaching the ceiling for government debt which can only be increased if all parliamentary groups agree to do so. Last time this was a protracted and difficult process and resulted in the US losing its AAA credit rating for its debt. Short term this hasn’t been a problem but could be longer term. This time we have the fiscal cliff to negotiate as well which is the double whammy of increased taxes and reduced government expenditure to take place in January. This could seriously affect US growth prospects at a very critical time as the US looks at last to be growing again. Please call your trader now for the latest rate.

Elsewhere there seems to be a paucity of key economic data. The key driver for currencies such as the Australian dollar will be risk aversion and risk appetite as dictated by the US and Chinese economies.

Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/

Smart Currency Rates and Comments 7th November 2012 - Congratulations to President Obama

It was another difficult day for sterling yesterday as it continued to lose ground against the majority of its trading peers, and failing to rebound against the US dollar as anticipation around the election results continued to build. Yesterday also saw the release of Manufacturing Production data, which came in at 0.1% growth, less than the forecast 0.3%. This disappointment continues to suggest that the UK economy is failing to recover as well as previously thought following last month's GDP figures and may cause the Bank of England to start another round of quantitative easing come Thursdays meeting. There is very little data out of the UK; but, as much of the world wakes up to the US Presidential election result, we can already see a dollar negative reaction in the market as risk appetite increased following President Obama being re-elected to the White House for the next four years. Call in now for the latest news and a live quote.

The euro had a better day yesterday making early gains across the board on the back of better than expected PMI data from the Service Sector – notably from Spain and Italy who are subject to continued bailout speculation. Gains continued against other major peers in spite of surprisingly poor German manufacturing data. While historically US elections have had limited effect on the markets we have seen the euro jump by one per cent against the dollar following the results. We may see the Greek parliament vote on austerity measures cause even greater volatility and a failure to pass the vote could be of grave consequence for the euro, and for Greece itself. Get in touch now to lock in a price.

The US dollar struggled through much of yesterday as investors sold off the dollar in the run up to the Presidential election results. Overnight it has become clear that President Obama has retained his position of President of the United States after securing the 270 Electoral College votes needed to win the race. Furthermore, the Democrats party have retained the majority in the Senate and the Republicans have retained the majority in the House of Representatives. The US dollar has weakened off against all of its trading peers following the result as risk appetite increases globally and due to the increased likelihood that the ultra-loose monetary policy will remain for some time to come. There is very little actual data out today other than crude oil inventories and the benchmark 10-year bond auction. The later will be watched closely by investors as they weigh up the need to hold onto long dated government bonds following this morning’s election result. Call in now to speak to your trader and to get a live price.

Elsewhere, the South African rand was particularly strong yesterday whilst the Canadian dollar also fared well following PMI data being released. Late last night the financial stability report from New Zealand was released and first thing this morning we will see the release of inflation data and the level of foreign currency reserves held by the Swiss National Bank. Later on this evening we have unemployment data from New Zealand and current account figures from Japan. Call in now to lock in a price.

Smart Currency Rates and Comments 2nd November 2012 - A good week for sterling

Sterling enjoyed a strong week against most of it major peers, reaching  a peak of 1.2495 against the euro and 1.6175 against the US dollar. This was on the back of better than expected GDP data released the previous week and comments from several members of the Bank of England which has reduced expectations of further quantitative easing and led to increased confidence in the economy. Yesterday, manufacturing Purchasing Managers' Index (PMI) data came out weaker than expected showing that industry had contracted by more than anticipated which did dampen the positive sentiment towards sterling. Today sees the release of construction PMI figures which will give a good insight into UK economic health; should data come out worse than forecast, expect the pound to weaken as confidence falters. Call in now to see if sterling has managed to hold its gains and to get a live quote.

The euro struggled early in the week touching a three week low against the US dollar on Tuesday, but, has made some positive gains in the second half. This weakness was in part due to on-going problems in Greece, coupled with questions that were surrounding the potential Spanish bailout. However, the markets were buoyed following the Spanish Prime Minister announcing that Spain will need the EU’s help to reach its budget targets and after data released showed that Spain’s GDP had contracted by less than expected. Greece has now submitted its 2013 budget to parliament, but it was met with a frosty reception and a 2 day anti-austerity strike has already been planned for next week. The hope is that at a 2 year extension to the bailout agreement will be granted. However, the Eurogroup finance ministers have urged "Greek authorities to solve remaining issues…" underlining the uncertainty that still remains. Today we will see the release of Manufacturing PMI data across Europe and over the weekend G20 meetings will be taking place. Greece’s problems are fresh on traders' minds and any developments will likely cause volatility for the euro. Please call in now for the latest news and changes in the euro rate

The US dollar had a relatively strong start to the week with trading volumes extremely thin and as investors grew nervous what effect the New York Stock Exchange (NYSE) being shut for two consecutive days due to Hurricane Sandy dubbed 'Frankenstorm storm' could have on the markets in general. The dollar then weakened off as speculation mounted that the costs incurred due to Hurricane Sandy now appear less severe than initially expected. There was a raft of positive data released across the US yesterday as employment data, consumer confidence figures and manufacturing PMI data all came in better than expected. Today’s highly influential Non-farm pay rolls employment data will be the main release globally, whilst statistics showing the rate of unemployment will also be announced. Get the latest news by calling in.

Elsewhere, the main news came from Japan this week as the Bank of Japan announced a smaller than expected round of asset purchasing, but, further central bank monetary easing seems likely. Better than expected manufacturing data released yesterday helped the Australian dollar strengthen. The Hungarian forint had a turbulent week as negotiations stalled between Hungary’s chief negotiator and the Troika with regards to a potential bail out and following the news that its central bank cut interest rates for the third month in a row. The Canadian dollar had a volatile week, struggling as negative growth figures of -0.1% were released when marginal growth had been anticipated. As risk appetite increased, the Canadian dollar started to recover and if the two sets of employment data released today are positive expect to see the trend continue. Give us a call for a quote to get in before the price gets too high.

Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/

Smart Currency Rates and Comments 1st November 2012 - Sterling has a good Wednesday, will it continue?

Sterling enjoyed a strong day yesterday, strengthening against all its major peers bar the Norwegian krone and erasing some of the losses seen earlier in the week. Speculation that the Bank of England is unlikely to implement another round of quantitative easing when policy makers meet next week led to increased confidence in the state of the UK’s economy. Today see’s the release of manufacturing Purchasers Managers Index (PMI) which is likely to give additional clarity as to how realistic last week's GDP figures were, or whether it was simply down to the 'Olympic effect'. If data comes out worse than forecast expect to see sterling drop as confidence in the recovery falters. Call in now to see if sterling has continued its upward trend and to get a live quote.

The euro had a strong start to the day as news spread that the Spanish Prime Minister had said that Spain will need the EU’s help to reach its budget targets. Rumours also spread that Greece had all but secured a 2 year extension on its bailout agreement following the Greek finance minister submitting the 2013 budget to parliament; however, much greater efforts are needed to reduce the country’s deficit. Other data released showed that the unemployment rate in Europe has hit fresh highs of 11.6%. There is very little data out of Europe today, but, any noteworthy news regarding Spain or Greece is bound to have a significant impact on the market. Please call in now for the latest news and changes in the euro rate.

The USD had a mixed day yesterday as America and in particular New York got back to work with Traders returning to the New York Stock Exchange after a two day closure. The dollar won back Tuesday's lost ground against the euro, yen and Australian dollar, but weakened off against sterling as speculation mounted that the Bank of England will refrain from further intervention. Today looks set for big change as employment, consumer confidence and manufacturing PMI data are all released. The market will play close attention to the unemployment data in particular for an indication on what sort of figures we can expect to see from Friday’s highly influential Non-farm pay rolls release. Positive data could see an end to the recent trend of negativity, and could kick start a hike in dollar value as it would be a key indication that the US is on its way to recovery; however, this could also inject greater risk appetite in to the market. Get the latest news by calling in.

Chinese manufacturing PMI data was released overnight and was better than expected and has boosted risk appetite. Elsewhere, the Norwegian krone was the stand out performer yesterday, strengthening against all its major counter parts as its central bank decided to keep interest rates on hold. The Japanese yen and Czech koruna both struggled yesterday as weak PMI data was released. Moreover, negative growth figures of -0.1% for Canada caused the Canadian dollar to weaken off, whilst Swiss retail sales and PMI data will be released this morning. Call in now for the latest news and a live quote.

Get a live quote and/or more information from Smart Currency at: http://www.smartinternationaltrade.co.uk/