16 month high to buy Euros but a weak pound against the USD, CAD, AUD & NZD. However excellent if you are selling these currencies to buy Sterling!!

Good Afternoon readers,

So sterling exchange rates spiked to a fresh 16 month high yesterday trading up at 1.2153 on the back of more negative news to come out of Greece. This has spooked investors/speculators to shy away from the single currency and turn towards the safe haven of the USD. This has helped the USD to gain against a range of currencies this year so if you require selling US Dollars to buy any major currency please do contact us for a quote as we have had some extremely attractive levels of late.

Although investors are a lot more cautious of events in Europe everyday clients like yourself who are in the process of buying properties and making business transfers are implementing a lot of stop loss orders which mean that if events do turn round for the Euro they will guarantee themselves a minimum rate which is acceptable to them. If the pound continues to gain against the Euro then they will raise their stop loss so that they achieve even more. If you would like more information on this tool please email me directly at bma@currencies.co.uk just ask for Ben. We have a fresh bout of Italian & Spanish bond auctions set for the end of this week. It will show how willing investors are to take up sovereign debt from the Euro Zone. If investors take up the allocation of bonds then it should help the Euro to gain slightly.  This I feel will set the tone for how the Euro will perform going into next week.


Now although sterling has made great gains in the last month against the Euro against a range of other currencies the pound has significantly weakened. We are at current lows against the US Dollar, Aussie Dollar, Canadian Dollar & kiwi Dollar.  This is all very concerning for clients who require purchasing these currencies as unfortunately early estimates for 2012 looks set to be negative for the UK economy and the Great British Pound.

The first significant batch of data is due out tomorrow for the UK with our trade balance figures out for November. We are expecting to see our trade balance move into the red from a surplus to a deficit. The only hope is that the estimated figure is incorrect otherwise we could see sterling exchange rates weaken even further against the above currencies. If you want to speak with us and secure any currency before this data release please email bma@currencies.co.uk and we can discuss the options that are available to you.

Then on Thursday we have more UK data with industrial and manufacturing data out and then the big interest rate decision by the Bank of England. We are not expecting any movement on the base rate of interest but any comments on quantitative easing (QE) could send the pound into shock like it has done in the past. We have said here on www.poundsterlingforecast.com for a long time that the UK economy is not growing and the data due out this week should firm up these thoughts. So if the Bank of England does decide to flood the economy with further sterling (QE) into the system then the Great British Pound may get knocked of its perch. Please do not get caught out by economic events that may affect your currency exchange and contact us to see if we can make you a saving on your currency transfer.

To give you a quick background, we are currency brokers and have been in the industry for years, this site was set up set up two years ago to give clients simple but informative information and now have 20,000 people a month stop by for information.

Last year we had thousands of people get in touch with us through the site, of which hundreds have already used us and we have saved them money over their high street bank or current broker, you can get in touch with us by clicking here and setting up a free, no obligation trading facility to get a quote within minutes…. There is no harm in comparing rates even if you have used someone else for years – Just like buying car insurance you need to always shop around. You can also email me directly bma@currencies.co.uk with any questions or queries.