Tag Archives: king
Pound Sterling exchange rates set for a busy morning tomorrow as Mervyn king speaks following a fairly solid day today
After a positive day for the Pound will King boot exchange rates straight back down?
The Pound actually had a fairly positive day on the currency markets today actually ending up being one of the best performing of the 16 most actively traded currencies even with a slight drop at the end of the days trading.
Retail sales figures released by the British Retail Consortium and our PMI services sector survey both came out positive which provided a welcome boost to the Pound for those of you looking to buy foreign currency in the near future.
If you are in this position though you must beware, well known in recent years for his outstanding ability to devalue the Pound at the drop of a sentence, Governor of the Bank of England Sir Mervyn King speaks tomorrow morning at 09:45am.
Any hint of further QE (Quantitative Easing) for the U.K could cause a rapid slide back down for Sterling, and King’s comments will be monitored closely by investors as we have the Bank of England interest rate decision tomorrow at midday. If we avoid any further bombshells from King tomorrow I expect us to remain in the 1.16s potentially at the higher end, if we do have yet another speech of doom and gloom then be prepared for 1.15 and possibly below by the end of the day.
Key data: European GDP figures also due tomorrow morning
Another factor which may have an effect on Sterling/Euro exchange rates may be European GDP figures due out at 10:00am tomorrow morning. The figure will be the final revision of how the Eurozone performed in Q4 last year and expectations are for figures to be revised down from -0.1% to -0.6% – Quite a contrast to the original level.
Should this be the case it will confirm once again that the Eurozone is indeed in a great deal of trouble as anyone without their head in the sand should already know. Personally as this is already predicted I don’t see it weakening the Euro too much, however this news will not help the performance of the Euro and may start to push the Pound back towards being the best of a bad bunch.
Australian GDP figures released overnight
Overnight we seethe release of GDP figure from Australia and they are expected to confirm once again that Australia is still performing extremely well throughout this global recession.
Surely you would think there may come a point where the downward trend for GBP/AUD exchange rates will stop and I agree, however I feel that we will need to see a hike interest rates in the U.K start to start to really see this trend turning around and unfortunately we are potentially quite a way away from seeing this happen.
Interest rate decisions key this week
Be aware there are indeed a number of interest rate decisions out for Canada, Japan, U.K and Europe – not to mention bank stress test results and Non-Farm payroll data for the states this week.
These may not only affect their specific currencies but any other fiscal comments may affect global attitude to risk. If you have a pending currency transfer to make you should ensure you have a proactive currency broker on your side to keep you up to date with the very latest market movements.
You can email me directly on djw@currencies.co.uk with a brief description of your requirements and a contact number and I will be more than happy to assist you.
King says BOE is ready to pump more QE in (Steve Eakins)
GBPEUR rates remain flat this week with a movement of only 0.5%, considerably lower than the average of over 1% a day last week. However this is all expected to change over the next 36 hours so anyone with a currency transfer should be keeping an active eye on markets now. If you are not in the position to do that and would like our assistance feel free to notify me. hse@currencies.co.uk
Late yesterday Mervyn King said that the monetary policy committee is ready to add to the stimulus again if the recovery shows signs of slowing. He also highlighted the importance of the data due tomorrow, UK GDP figures. He mentioned that it may show the “zig-zag” pattern of recovery in the probably going to continue. So again be wary of this event which is tomorrow morning!
Further to that he also strengthened the likelihood that more QE will be needed, whether that be in 2 weeks’ time or before Christmas is not the gamble. He said that “the storm clouds from the euro area have not yet lifted, and in other parts of the sky new clouds are drifting over. China india and Brazil, the three largest emerging market economies, are all slowing.” From this I think it is highly likely that more QE will come to the UK and weaken the pound, but when is something that the market will be gambling on. The next policy decision meeting is November the 8th and could easily be when they announce an extension to the current target of 275 billion pounds!
So when do you buy if you’re buying, and when do you sell euros if you are selling?
If I was in your position and needed to move this week I would sell now and buy tomorrow afternoon of course I cannot advise but this is my personal opinion. The UK GDP figures will be the biggest news this week and could easily move the markets by over 1% adding £1,300 to a €200,000 purchase. If like many you are looking for the best exchange rate, please contact us to check. We have been helping people for over 12 years do this and simply put if we could not help we would not be in business. It will take you no longer than 2 minutes to email me and I can quickly reply with our comparison quote. Contact me at hse@currencies.co.uk
Thank you,
Steve Eakins
Bank of England minutes most important for the Pound – released tomorrow morning… Will Mervyn King do Sterling a favour for once?? Doubtful!
Well what can I say…. I go away for a long weekend and the Pound has slipped away again against the Euro….. The single currency appears to not know how to lay down and give up, and investors out there somewhere are still more than happy to back it.
Tomorrow morning is the next key data due for the U.K and indeed the Pound – further doom and gloom from the U.K could knock the Pound even further against the Euro.
The Pound is indeed still gaining ground against the perceived ‘riskier currencies’ such as the AUD, NZD and ZAR as investors risk appetite declines accross the world, as mentioned before when risk appetite is generally low then the more exotic currencies can tend to weaken…. great news for those of you looking to emigrate further afield!
Personally I feel the Pound will creep up a little further against the AUD, NZD and ZAR in the near term, until some major issues accross Europe at least have reasonably solid solutions in place to resolve them.
Tomorrow will be key for those with Euro requirements be it buying or selling as we could easily see a shift of quite some force surrounding the Bank of England’s release. It would not surprise me to see the Pound struggle again against the Euro and a spanner to be thrown into the works, it is easy when you have a currency transaction to carry out to stare upwards and just hope that rates follw suit, the problem is the currency markets can quite easily nip in your back pocket and steal your wallet whilst you are looking at the sky, and there is no guarantee that they will give it back and rates will return.
If you have a currency requirement imminently or in the coming months then do feel free to contact me directly djw@currencies.co.uk and I will be confident that you receive a much better rate of exchange than using your bank or another broker by using me – So far this year through this site alone 231 people have got in touch and used me personally, joining our growing list of over 40,000 clients here at Foreign Currency Direct.
