The Pound has had a mixed day today gaining ground against the U.S Dollar yet losing against currencies such as the Euro and South African Rand. Rates have remained reasonably flat against the Australian Dollar and New Zealand Dollar which are usually fairly volatile currencies.
We saw that Deutsche Bank expect Australia to fall into recession in 2013 which may mean that it is coming to crunch time for those of you holding out that still have Australian Dollars to sell. here is a link with that story: http://online.wsj.com/article/SB10000872396390443855804577602552781925554.html
Head of the European Central Bank Mario Draghi has backed bond buying plans by the European Central bank which has led to a little Euro strength over the day and also is more than likely why we have seen the Pound gain ground against the U.S Dollar as investors have probably gained back a little confidence in the markets following these comments, pulled out of their ‘safer haven’ investments such as the USD and put them into riskier investments such as the South African Rand.
A decrease in demand for the Dollar following this of course then weakens the currency which may be why we have seen such shifts in trading today.
Tomorrow the most important release on the markets is in the form of the FOMC minutes over in the States, basically the minutes from the last Federal Reserve Interest Rate decision which may involve the discussions around QE3 (Quantitative Easing) and could lead to some overnight volatility depending on what has been discussed.
QE is generally seen as negative for the currency concerned however this has been fairly common knowledge that we may see QE3 at some point in the future so mentions of it being put back may actually strenghen the Dollar.
The most important release for the U.K this week is GDP or Gross Domestic Product figures out for the U.K on Friday, expectation is to see a revised figure to be slightly better for the U.K which may give the Pound a slight boost at the end of the week so if you have a foreign currency you are looking to sell then tomorrow and Thursday may be your opportunity.
For a free analysis of your position and what may move your rate of exchange in the coming weeks and months please feel free to speak with me Daniel Wright directly on 01494 787 478 or you can email me on [email protected] I welcome private and corporate clients of any size so do feel free to contact me today.
The slightest change in exchange rates can make quite a difference to the cost of an overseas property or the amount you will get back from the sale of one, get in touch with me today if you are in a position regarding overseas property and I shall be more than happy to assist you.