Important day ahead for the Pound Sterling – Will the budget be taken well?

Today we see an extremely important day for the Pound against all major currencies and although we may not see any instant movement it will show a good indication as to what may happen going forward throughout 2010.

The budget is due to be out at 12:30pm and the new coalition Government will have to get the balance between aggressive cuts in order to combat the deficit and not going too over the top and pushing the U.K back into recession just right.

My personal opinion is that they will get this right and it will take time but the Pound will gain ground over the course of the summer once the dust has settled from the original release.

Have you budgeted for the budget? What will happen to the Pound?

I hope you all had a great weekend?

For those of you with upcoming transfers to make be it buying or selling foreign currency with the Pound this week is seriously important for you – especially with tomorrow’s emergency budget looming.

This could have an instant impact on the value of the Pound against all major currencies and should already have an agreement in place to purchase a property overseas it could make it a lot more expensive.

To be honest it is hard to call exactly what kind of effect the budget will have on the markets until it is fully released but do be prepared for some volatility, if you want me to keep you up to date with what is going on then fill in the contact form on the right hand side of this page as I have one eye on the market throughout the day and can jump on the phone should there be any rapid movements for or against you.

What will happen to Sterling after the budget?

The Pound has remained reasonably stable leading up to the budget due to come out on the 22nd of this month.

Many clients calling in are now asking me just what I think will happen after the budget….. The truth is I don’t know until it is released however the general feeling is that the Pound may take a minor dip immediately after the release due to cuts being extremely harsh, however in the longer term we should see the Pound start to slowly gain strength as this can eventually only be seen as positive with a plan finally in action.

This morning sees the release of mortgage approvals data, money supply and public sector net borrowing all out at 09:30am and this may set the scene for the day ahead… personally I can’t see any huge swings on the market today but then and again there are always surprises popping up in the current climate.

If you are buying a property abroad, have business transactions to carry out or need to get money overseas for any other reason and want the best exchange rates, just fill in the form on the right hand side and one of the experienced traders that write on this blog will be in touch shortly.

Pound-Euro exchange rates

Today could be a very volatile day for sterling exchange rates and the Euro against a host of currencies with a big  EU summit to try and tackle the debt issues of the Euro Zone and how they will get economic growth back on track.

The pound has taken a hit during the Asian session as a host of negative data came out for the pound yesterday. Unemployment figures were more disappointing than what was expected and consumer confidence in the UK was at an 11 month low.

The pound has seen some really good gains of late against the Euro and Aussie Dollar and USD. Against the Euro the pound has recently spiked to a 19 month high and against the USD we were recently trading a month high. The gains are starting to be reversed now and if you have a requirement to buy or sell any currency please feel free to contact us and we would be delighted to speak with you about the outlook for the currency that you require.

If you are buying a property abroad, have business transactions to carry out or need to get money overseas for any other reason and want the best exchange rates, just fill in the form on the right hand side and one of the experienced traders that write on this blog will be in touch shortly.

Pound Weakens On Back Of Inflation Data

sterling exchange rates have taken a hit this morning against a host of currencies on the back of some worse than expected inflation data. As of 9.50 am the pound has lost from the high of the morning around half a cent against the EURO and the USD. With trading also down against the YEN, CAD and RAND it will probably prove to be an extremely volatile day.

With Inflation still rising but not at the level that was expected the pound has weakened as it may give us a sign that the Bank of England could keep interest rates at the low of 0.5%. A rule of thumb is that when interest rates are rising the currency in question will strengthen so this could be why the sterling exchange rates have suffered this morning.

Other bad data for the pound was the release that house prices in the UK are still increasing but once again not at the rate that was expected. The markets move on expectation so when a data release is worse than was expected the rates of exchange can weaken quite significantly depending on how much lower the figures come out.

If you are buying a property abroad, have business transactions to carry out or need to get money overseas for any other reason and want the best exchange rates, just fill in the form on the right hand side and one of the experienced traders that write on this blog will be in touch shortly.

Sterling reaches 19 month high against Euro rate forecast for this week for Pound against all majors

GBPEUR rate remains steady as markets await the Autumn Budget

Sterling reached a 19 month high against the Euro last week, This has presented those looking to buy Euros with an exceptional opportunity compared to levels we have seen recently – If buying a property abroad or making business transactions this could save you a fortune!

The long term view is for further gains and I would anticipate to be above the 1.25 levels by the end of the year due to the severe debt crisis plaguing European Governments.

But the issue of debt also affects the UK shores and the short term outlook as we announce our own Austerity measures via the emergency budget on the 22nd June, could spell a temporary dip for the Pound.

Also worth noting is a report out today from the OBR (Office of Budget Responsibility), anticipated to scale down predicted growth figures.

There are a number of different data releases due out this week not just for the U.K but various other economies that will have an effect on the cost of you buying these particular foreign currencies.

These are as follows:

Tommorow – Reserve Bank of Australia meeting minutes, this will give an overview as to how they came to their latest interest rate decision and give indications as to how they may deal with their economy going forward. We also see the Bank of Japan interest rate decision (no change in rates is expected).

For the U.K we see CPI (Consumer Price Index) data out which is a measure of inflation and could lead to market volatility.

Wednesday – Wednesday is key for the U.K with key unemployent figures being released at 09:30am – any change to expected figures could lead to major market movements.

Thursday –  This will be another busy day with releases of note being Retail sales for the U.K in the morning, the Swiss announce their interest rate decision and in the afternoon we see the U.S take their turn to announce CPI.

Friday – A quiet day expected on the markets however as regular traders will know there are always surprises popping up so if you have a transfer to make ensure you are in close contact with a currency specialist who can keep you up to date with market movements.

If you are buying a property abroad, have business transactions to carry out or need to get money overseas for any other reason and want the best exchange rates, just fill in the form on the right hand side and one of the experienced traders that write on this blog will be in touch shortly.

Sterling exchange rates take a tumble today

The pound has taken a bit of a hit today reversing the excellent gains it had made against the Euro recently. It is nothing to get to alarmed about as we are still trading at close to the 18/19 month high that we saw yesterday.

Sterling seems to be counting the costs of  a Fitch report A credit rating agency which has said the UK needed a strong medium-term strategy to tackle the fiscal problems, including a faster pace of deficit reduction than set out in the April 2010 Budget.

The pound has weakened by 0.54% against the US dollar to $1.4394 and 0.33% against the euro to 1.2086.

Fitch Ratings said in a special report that “following an unprecedented economic and financial shock, the scale of the UK’s AAA/stable outlook fiscal challenge is formidable and warrants a strong medium-term consolidation strategy – including a faster pace of deficit reduction than set out in the April 2010 budget”.

This just goes to show how the gains the pound has been seeing can get eradicated in an instance during thses volatile times. We have seen numerous clients taking out mini forward contracts to secure rates of exchange and eliminate the risk factor with their money transfers.

I still expect the pound to gain against a host of currencies over the next 6 months providing we can show positive signs of how we will cut our huge deficit. Short term though is a bit harder to predict and I would expect to see a 2-3 cent movement against the Euro over the next few weeks.

If you are buying a property abroad, have business transactions to carry out or need to get money overseas for any other reason and want the best exchange rates, just fill in the form on the right hand side and one of the experienced traders that write on this blog will be in touch shortly.

Sterling strength Euro weakness – Why is it happening? How long will it last?

Good afternoon and sorry for the lack of posts lately….. with the GBP – EUR rates breaching the 1.20 mark and staying over and above it the other traders and I have been rushed off our feet with those looking to lock into rates and make that dream purchase abroad a little cheaper.

So, why has the Pound gained so much?

Against the Euro it has been more a case of Euro weakness than Sterling strength as the Greek problem still hangs around like a grey cloud and Spain appear to be following suit with rapid pace along with numerous other economies.

This in turn creates one huge problem….. With only one set of fiscal policies just where do the European Central Bank turn next? Obviously this has led to low confidence in the Euro Zone and whispers of the Euro not even existing going forward.

My personal opinion is that the Pound may well creep up a little more in the coming weeks as more and more cracks appear in Europe and the Pound just subtly continues creeping up.

Against the Australian Dollar the great recovery appears mainly down to the fear of a hung Parliament over there – remember what tht did to the Pound???

The election is not for months so should this become even more of a possibility then expect the Pound to make further gains against the AUD.

Sterling has seen large gains against the SEK,DKK,ZAR and numerous other currencies whilst staying reasonably flat against the Dollar and making slight losses against the CAD.

 If you are buying a property abroad, have business transactions to carry out or need to get money overseas for any other reason and want the best exchange rates, just fill in the form on the right hand side and one of the experienced traders that write on this blog will be in touch shortly.

The Pound has had a mixed day!!!

Sterling exchange rates have had a very bumpy ride today. With gains against the USD and EUR this morning the pound then retracted slightly. At present we are hovering around 1.44 to the USD and 1.1620 against the EUR. Against the antipodean currencies sterling is trading at 1.7288 against the Aussie Dollar, 2.1337 to the NZD and 11.2890 against the ZAR

George Osborne today outlined 6.25 billion pounds worth of public sector spending cuts, in line with expectations and the bulk of which would be used to trim the budget deficit this year. With The UK’s deficit running at around 11% of GDP it is vital that the government implement a strategy to reduce the deficit asap.

Tomorrow the UK has revised GDP figures out for the 1st quarter of the year. This is potentially a big mover for sterling exchange rates. If the figures show that the UK’s economy did not grow by as much as last predicted we could see the pound weaken against most majors.

If you are buying a property abroad, have business transactions to carry out or need to get money overseas for any other reason and want the best exchange rates, just fill in the form on the right hand side and one of the experienced traders that write on this blog will be in touch shortly.

sterling exchange rate update

GBPEUR rate remains steady as markets await the Autumn Budget

Trading has been extremely volatile for sterling exchange rates since the UK election and continued yesterday after Germany’s ban on naked short selling of some securities the previous day had triggered risk aversion, sparking wild moves in the currency market.

A sell off in commodities related currencies, including the Australian and New Zealand dollar, which are perceived to be higher risk, dragged sterling lower against the USD and YEN which are deemed a safe haven for investors.

The one thing that markets and investors dislike the most is uncertainty. With problems in all the markets (American, European and Asian) all closing down quite significantly yesterday I feel that the pound could be the loser come the end of the day.

Today however the Aussie, Kiwi and Rand have reversed their losses and the pound is down by 1% against AUD, 1.36% against the NZD and 0.68% against the ZAR.

If you are buying a property abroad, have business transactions to carry out or need to get money overseas for any other reason and want the best exchange rates, just fill in the form on the right hand side and one of the experienced traders that write on this blog will be in touch shortly.

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