Daily Archives: July 12, 2012
Pound Euro fairly flat today – Further drop against U.S Dollar and a welcome climb against the Australian Dollar, New Zealand Dollar and South African Rand
The Pound has had a mixed day of trading so far staying fairly flat against the Euro during a week of gains, dropping away against the Dollar as investors plunge back into safer havens.
We also have seen fairly good gains against the Australian Dollar following poor unemployment figures overnight and the prospect of seeing poor GDP figures for China tomorrow, which may lead to a great end to the week for those in the process of emigrating either currently or in the near future.
The Pound has once again had a poor run against the so called ‘riskier currencies’ such as the Australian Dollar, New Zealand Dollar and South African Rand and could really do with making a fightback, tomorrow hopefully may be the catalyst for this. Personally I feel we aren’t far away from another front page European ‘crisis’ subject and that alone may push these currency pairings back in the right direction again as half the reason we have been held back is due to the fact that although all has far from gone quiet on the European crisis front there is a little bit of certainty surrounding the situation.
Global certainty tends to strengthen the riskier currencies and can weaken the Dollar so another big spanner thrown in the works surrounding the European situation could lead to further Dollar strength and a buying opportunity for those with an interest in AUD, NZD and CAD.
We don’t only pride ourselves on a great exchange rate but also a really high level of service too, which you may find you aren’t getting to a high enough standard at present.
I deal with bank to bank transfers ranging from one thousand Pounds to multi million Pound transactions for both private clients and corporate clients… We have a regular payments facility too which is free and can assist anyone with smaller payments to Europe.
The company I work for is FSA registered and Authorised as a payments institute and all funds are kept in client transaction accounts to give you peace of mind your funds are safe and secure, we have won awards both for our ezxchange rates and customer service and have now 45,000 clients under our wing.
If you feel I could be of assistance to you as well, feel free to get in contact with me directly by emailing me djw@currencies.co.uk or you can indeed take two minutes to register for free to get a no obligation comparison in advance of your next transaction by clicking here: www.currencies.co.uk/referral.asp?F_ID=1215
Sterlings worrying forecast
Generally sterling has been gaining this week against most currencies, as regular readers will be aware, this is due to investors using the Pound as a safe haven for their cash. However GDP estimates fell yet again his week, June’s NIESR GDP forecasts fell back to -0.2% from +0.1% in May. This is now the fifth month this year, (out of six readings,) that has shown that the UK economy has contracted.
The Bank of England is well aware of the struggle which is why additional Quantitative Easing (QE) was announced last week, increasing the total target to £375 billion! Still, loose monetary policy seems to have proven ineffective around the globe and as a result I personally would not be surprised to see further QE being announced in the future. (QE is the printing of money, the theory is it makes banks lend more which increases growth, however as more money is created it value falls, normally QE weakens a currency.)
This is more of a long term worry for clients, in the shorter term I personally would not be surprsied to see GBPEUR climb further. So good news for buyer, but why?
Well this week has already been a busy week for the Euro as Financial ministers meet in Brussells for a 2 days meeting. The big news was that covered in yesterdays blog that Spain is receiving a “banking bailout,” but in my optition they are joinging the majority now that have had a bailout; Greece, Ireland, Portugal and Cyrpus. That is why we are where we are at a near 4 year high. The reason why I think there is more to come is due to comments make from italy. Their prime minister said that he would be open to also receive a support package to lower the countries borrowing. If this was confirmed I would think GBPEUR rates could push up to 1.30!!!!!!!
If you are in a position reading these blogs looking for the time to trade, I think it is very close! Now is the time to contact us if you need assistance…. Contact me personally by emailing me at hse@currencies.co.uk I look forward to hearing from you.
