Daily Archives: November 15, 2011
What is happening with Italy – What have they done wrong to get into this mess?
A very interesting article on Italy on the BBC I have found, feel free to take a look as it details just where Italy are going wrong and does suggest they have one hell of a hill to climb!
Sterling against the majors – current currency outlook for the Pound against Euro, Dollar, Australian Dollar, New Zealand Dollar, South African Rand and Swiss Franc
Much of the headline news these days is focused on the European debt crisis, and of course it should be as it is a huge problem that probably will not go away for years to come. It is easy however sometimes to forget that indeed the U.K economy isn’t exactly smelling of roses currently, and there are plenty of economic data releases coming out on a daily basis that are effecting the strength of the Pound in an adverse way.
As well as political stories, the buy/sell demand for currency is traditionally driven by economic releases, ranging from unemployment to manufacturing figures. There are roughly 30 releases for each economy a month with a forecast for the release being priced into the market in advance of this, the economic calender on the right hand side of this page should keep you informed of what is due out next and what expectations are. When the release is made, and if it differs from expectations then you can see the markets shift and readjust accordingly, should there be quite a difference on a larger, more important release then you could see a swift movement either creating a spike in the market for what you are looking to do, or potentially meaning your purchase could cost you a lot more.
The more uncertainty we see in the Eurozone in the coming months, the more the Euro will struggle to make a real fight back from the recent losses seen, so it may be sensible to look at selling Euros now or booking out a forward contract should your house sale overseas be in the process of going through at present. Along with the Euro struggling, the uncertainty should lead to the Dollar gaining more strength as investors still class it as a ‘safer haven’ and run to the Dollar in times of need. They had been using the Swiss Franc primarily but due to the recent devaluing of the Swiss Franc it isn’t the safe haven of choice an y more. With whispers of further devaluing in the pipeline the CHF may well continue to weaken in the near term until the SNB (Swiss National Bank) confirm they have no further intention to weaken the currency.
For AUD, NZD and ZAR buyers, the uncertainty is also great as it means investors pull out of the ‘riskier’ currencies such as the AUD, NZD and ZAR meaning there is less demand and they are cheaper to buy, Ausralia may well be ever so slightly feeling the pinch lately with a recent rate cut so those waiting for a spike agains the AUD may be in luck.
My personal opinion is in the lead up to Christmas there will no doubt be some great buying and selling opportunites and those quick enough to act and that do not get to greedy could do well in the current market. It is key to have a proactive broker on your side, I can help you with any upcoming transfers both with getting commercial levels of exchange for personal transfers and keeping you fully up to date with market movements, I can also offer forward contracts, stop loss and limit order contracts.
The company I work for is FSA regulated and authorised as a payments institute, we have been trading for over 11 years and have over 40,000 clients so you can have the peace of mind you are dealing with a well respected company in the industry.
Contact me directly djw@currencies.co.uk leaving a contact number and a brief explanation of your requirements and I shall personally contact you to discuss exactly how we work and how I can help you in this extremely volatile market.
