1. Unbeatable
exchange rates On Euros pounds Transactions
2. No commissions
3. FREE transfers over £5,000
4. Guaranteed secure transactions
5. Same day swift clearing of funds
6. Your personal senior FX broker
Thursday 4th September 2008 Interbank rates GB POUNDS to EUROS 1.2326 EUROS to POUNDS 0.8113 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
Sterling falls for the eighth straight day to 12 year low against
major rivals.
Pounds:
The pound has come back slightly this morning against the dollar and
euro, after again sliding yesterday to
another all time low against the single currency, and a 29 month low
against the dollar. Sterling fell to hit
1.2217 against the euro, now trading at 1.2255. A cent has been pulled
back against the dollar to trade at
$1.78, but yesterday saw the pound touch $1.7667.
A survey on consumer
confidence showed it had mired at
a four-month low in August as food prices rose 10% year-on-year, whilst
other data showed activity in the
services sector was still weakening. The pound fell for the eighth
straight day to a 12 year low against a basket
of currencies of the UK’s main trading partners in reaction. The latest
poor data come ahead of today’s
meeting of the Bank of England’s monetary policy committee, which will
consider whether it should cut its 5%
rate, a move markets increasingly expect before the end of the year.
Most analysts do expect the central
bank to leave rates unchanged today.
Data at 9.30am: Bank of England Rate Decision expected at 5% unchanged.
Euros:
The eurozone didn't escape the global downturn in world economies
yesterday as eurozone GDP 2Q showed
the economy grew at the slowest year-on-year pace in almost five years.
Retail sales posted a fall in July,
more than expected showing a sign that the region’s economy is likely to
weaken further after contracting in
the second quarter. The euro fell against the dollar to hit $1.4382 but
has bounced back this morning to trade
at $1.4536, nearly a 2 cent rally. Against the pound the euro continued
its relentless march to push to a new
high as 0.8185 was made in the early hours.
The euro has given up 0.4%
of its gains made against sterling in
this mornings trade. There is speculation that the ECB may slash
interest rates soon, but the expectation today
is to remain on hold. Currency players will focus more on the remarks
from ECB President Jean-Claude
Trichet in the post-meeting press conference, to see if he signals that
the central bank is a stop closer to loosening
monetary policy.
Data at 11.00am: German Factory Orders. 1.30pm: ECB
Rate Decision expected
at 4.25% unchanged.
General Currency News:
• World oil prices were steady this morning ahead of a weekly US energy
stockpile report, expected to
give clues about the state of American demand for crude. Nymex now
trading at $109.33/barrel.
Wednesday 3rd September 2008 Interbank rates GB POUNDS to EUROS 1.2300 EUROS to POUNDS 0.8130 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
Sterling continues to be under pressure on fallout from
Chancellors remarks.
Pounds:
The pound continued its demise yesterday as the fallout from Alastair
Darlings comments regarding the state
of the UK economy continued to weigh heavily on the UK currency. This
was despite his following comments
yesterday that he meant the world economy faced the worst struggle seen
in 60 years, rather than just the
UK. Door, horse, bolted comes to mind.
The pound was not helped by a
drop in oil prices, which subsequently
rallied the dollars position against a basket of currencies, rocketing
the greenback to a 29 month high against
the pound, to hit $1.7704. Sterling’s fall against the euro also
continued, posting a new record low for the
second time in two days, hitting 1,2260 in early trade this morning.
Tomorrow will be a key day both sides of
the Channel, with analysts expecting the Bank of England to keep
interest rates unchanged at 5.00%
Data at 9.30am: PMI Services expected at 47 from 47.4.
Euros:
The euros dramatic fall continued into Wednesdays session, breaking
below its Feb 8th low of $1.4450. This
was a key support level, and if breached the next key support level was
deemed to be $1.40. The euros position
against the dollar hasn't been helped by a drop in oil, which has given
the dollar a boost against a basket
of currencies.
Against the pound, the euro is still breaking new highs,
with 0.8156 hit this morning. Pressure
on sterling looks set to keep the euro’s position high, with the 0.83
level not far away. Markets look ahead to
today’s release of a slew of euro data, including July Retail sales,
seen down 0.2% on month and down 2.1%
on year. Also eurozone 2nd quarter GDP, seen down 0.2% on the quarter
and up 1.5% on the year.
Data at 10.00am: Eurozone GDP YoY expected at 1.5% unchanged. Eurozone
Retail sales expected
at -0.1% from –0.6% previous.
General Currency News:
• Oil prices dropped more than $6.50 per barrel yesterday, the biggest
drop in dollar terms since
1991,as dealers bet the US oil industry would recover quickly from
Hurricane Gustav, currently at
$108.94 per barrel.
Tuesday 2nd September 2008 Interbank rates GB POUNDS to EUROS 1.2300 EUROS to POUNDS 0.8128 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
Sterling drops to record low against the euro.
Pounds:
What a day for the pound! Sterling managed to post a record low
against the euro yesterday as money markets
digested warnings from Alistair Darling that the economic times in the
UK faces “ are arguably the worst
they’ve seen in 60 years” as stated in yesterdays morning report. This
was a signal to investors to dump the
pound as sterling plunged. A new low was posted in early trade this
morning as 1.2261 was seen, before recovering
to a slightly higher price of 1.2314.
The pound saw a 28 month low
against the dollar as a key level
of $1.80 was breached yesterday, and looks set to continue into today’s
trading session. UK Prime Minister
Gordon Brown’s spokesman tried to allay market concerns of a high level
government rift, insisting the prime
minister had “full confidence”, in his chancellor, but declined to
comment on any reshuffle.
Later today,
Gordon Brown is set to announce what they will describe as a “major
package”, including help for first time
buyers and schemes for struggling homeowners to avoid eviction. This
will be closely watched as may help
the pounds dramatic recent tumble.
Data at 9.30am: PMI CIPS Construction
PMI expected at 36 from
36.7.
Euros:
A mixed day for the single currency yesterday as the euro hit a record
high against the pound, but fell to an 8
month low against the dollar. Recent comments from the UK chancellor
managed to push the pound down
against the euro to hit 0.8155. This wasn't seen as a euro move, as the
single currency did drop against the
dollar as we saw $1.4515 hit in this mornings trade.
The markets are
still digesting the view that there maybe
a rate cut coming up, although the view is not this month, and so soon
after the last rate hike. Again, the
markets will be listening out for any hawkish comments by ECB President
after the rate decision on Thursday.
Data at 10.00am: Eurozone PPI expected at 9.1% from 8.0% previous.
General Currency News:
• The Reserve Bank of Australia cut interest rates for the first time in
seven years to avert an economic
hard landing, but signalled it would be cautious in easing policy
further. The central bank lowered rates
by 25 basis points to 7.0%.
• The Thai Baht weakened across the board as a state of emergency was
declared in the Southeast
Asian State.
Monday 1st September 2008 Interbank rates GB POUNDS to EUROS 1.2317 EUROS to POUNDS 0.8118 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
Pound at all time low against the euro since the single currencies
inception.
Pounds:
The pound sank to another low against the dollar as gloom about the
Uk economic outlook spread on surprisingly
downbeat comments from the finance minister and more bad news on
housing. A 28 month low on the
dollar was seen as $1.8006 was hit in late trade on Friday. The pound
has also fallen below the 1.24 level
against the euro, with a record low of 1.2306 posted in the early hours.
Chancellor of the exchequer Alistair
Darling said in an interview published Friday in the Guardian newspaper
that the UK could be facing its worst
economic conditions in 60 years.
The beleaguered UK housing market saw
more damming news as UK house
prices posted their biggest annual drop for at least seven years in
August, as the credit crunch and concerns
about the economic outlook continued to weigh on the property market.
Data at 9.30am: PMI Manufacturing expected at 44.1 from 44.3 previous,
Net Consumer Credit
expected at 0.8B from 0.9B previous, Mortgage Approvals expected at 36k
unchanged.
Euros:
The euro hit an all time high against the pound as 0.8126 was breached
in the early hours of this morning.
Even though the euro economy is still going through the global economic
crises, its is fairing better than the
battered pound.
Against the dollar the story is reversed as the euro was
close to hitting the six month low on
the dollar to trade at $1.4613. German retail sales fell far more than
generally expected in July, dropping
1.5% on the month, for a flat reading on the year. Looking ahead to
later in the week, the general consensus
is for the ECB to keep rates unchanged on Thursday at 4.25%.
Data at 10.00am: Eurozone PMI Manufacturing expected at 47.5 unchanged.
General Currency News:
• Oil prices are jumpy going into this week as tropical storm Gustav
approached the Gulf or Mexico, expected
to hit on Tuesday. Nymex crude hit $117.00this morning.
• UK Chancellor of the Exchequer Alistair Darling’s job was on the line
last night after Whitehall insiders
said that he could be involved in an imminent Cabinet reshuffle. The
Chancellors assertions at the
weekend that government changes were unlikely were described in
categorical terms as “wrong”.
Whitehall insiders told The Times that a controversial interview, in
which he claimed that Britain could
be heading into the worst economic conditions for 60 years, may have
harmed his position.
Friday 29th August 2008 Interbank rates GB POUNDS to EUROS 1.2410 EUROS to POUNDS 0.8058 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
UK consumer confidence improves slightly, compared to record low
last.
Pounds:
The pounds retreat against the dollar continued yesterday as cable
hit a 27 month low. Better than expected
data state side saw the pound drop to a low of $1.8240 this morning.
Data released today from the UK
showed consumer confidence had improved in August, but this was only
compared to a record low the previous
month. The slight recovery was due to short term effects and shouldn’t
be seen as a turnaround in sentiment.The pound also dropped against the euro to hit a four month low of
1.2402. Danny Blanchflower, a
member of the Bank of England’s Monetary Policy Committee, has hinted
that he may push for a half a percentage
point cut in interest rates at the next meeting of the MPC, but be aware
that Mr Blanchflower has
been the MPC’s most consistent advocate of slashing rates. This has
however not helped the pound as it continues
to be sold of against a basket of currencies.
No data.
Euros:
The euro held its ground against the dollar yesterday, despite strong
GDP data from the US helping the
greenback rally against other currencies. The single currency was helped
by better than expect money supply
in the eurozone and a rally in oil, which weighed down on the dollar.
The euro’s rise against the pound continued
as the 0.80 level was breached, and signals in the UK are for a drop in
interest rates sooner than in the
eurozone, which would lead to a stronger single currency.
Data at 10.00am: Eurozone Unemployment Rate expected at 7.3% unchanged.
General Currency News:
• Oil prices rebounded on Friday as traders kept a close watch on the
storm moving towards the Gulf of
Mexico and key oil installations. Nymex rose $1.29 to trade at $116.88
per barrel. Fears are also
mounting that Russia may restrict oil deliveries to western Europe over
the coming days, in response
to the threat of European Union sanctions and NATO naval actions in the
Black Sea.
• The Japanese government is finalizing an economic stimulus package
worth $95 billion for government
credit guarantees for small businesses, which has helped the Yen gain a
little strength.
Thursday 28th August 2008 Interbank rates GB POUNDS to EUROS 1.2439 EUROS to POUNDS 0.8039 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
Deepening recession may put UK into full-year GDP fall.
Pounds:
Nationwide showed house prices fell 1.9 percent in the month of
August. This showed their biggest annual
drop since monthly records began in 1991. The decline, which was bigger
than most analysts were expecting,
pushed the average price of a property to £164,654, the lowest since May
2006. This data shows the 10th
consecutive monthly decline and the change in fortune for the property
market since the credit crunch took
hold last summer. The decade of trebling property values has well and
truly ended.
Britain's economy is set
to shrink over the next year as a deepening recession inflicts the first
full-year fall in national income since
1991, a leading forecasting group predicts today. A depressing
assessment fuels the fear over the growing
severity of the downturn gripping the nation, Capital Economics becomes
the first significant forecaster to
project that the slump will lead to a full-year drop in GDP over 2009.
No Data due
Euros:
The Euro broke away from the US Dollar six-month high after ECB officials
halted speculation that Europe could
see rate cuts in coming months, Board Member Axel Weber (considered as
one of the most influential members)
told the media that “ talk about lower interest rates in the euro
zone was premature!”. This hawkish
stance was displayed despite the fact that the Euro zone is experiencing
an abrupt slowdown in economic
growth.
Euro zone inflation still remains significantly higher than the ECB’s goal of an annual rate “below but
close to” 2 per cent highlighting where the central bank’s priorities
lie.
The Euro also strengthened against the pound edging closer to the all
time high achieved in April this year.
General Currency News:
• Alliance & Leicester cuts some mortgage rates as hint of competition
returns
• Asian debt offerings facing a global crisis of trust .
• Central Banks Mulling Easier Access To Liquidity
• Despite U.S. economic weakness, the dollar had been benefiting from
growing signs since late July that
economic weakness has spread beyond the Unites States.
Wednesday 27th August 2008 Interbank rates GB POUNDS to EUROS 1.2525 EUROS to POUNDS 0.7984 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
Euro weakens on very weak economic data from Germany.
Pounds:
The pound took a turn for the worse yesterday against the dollar as
it posted a 2 year low against the green-
back. Sterling has been falling for the last month, when it ducked under
the $2 level, and its hard to see
where the pound will find any support.
Yesterday saw comments by the FOMC reinforce the view that the next
move for us interest rates may be up, which put even more pressure on
cable. A report in the Telegraph
newspaper highlighted the view that the pound could slide as low as
$1.50 against the dollar in the coming
years as the exodus of foreign investors from sterling gathers pace.
Investors are also looking at the view
that the Bank of England may soon have to cut interest rates to help
support the weakening economy, which
would in turn pile more pressure on the pound to weaken. The pounds
slide against the euro was not so bad,
as very weak economic data from Germany dragged the euro down against a
basket of currencies.
No data.
Euros:
The euro came under pressure yesterday after very weak economic data
from Germany dragged down the
single currency against a basket of currencies. German business
confidence plummeted in August, hitting its
lowest level in three years, despite lower oil prices and a weaker euro,
a survey from the German Ifo Institute
showed. The Ifo business climate index fell to 94.8 from 97.5 in July,
well below economists forecasts of 97.1.
The euro hit a six month low against the dollar at $1.4569. Against the
pound the single currency did weaken
by about half a cent to hit 0.7936 but has since pulled back some of
those losses to settle at 0.7973 this
morning.
No data.
General Currency News:
• World oil prices are higher today, underpinned by concerns Hurricane
Gustav may head for the Gulf of
Mexico where key US energy installations are located. Prices also drew
support from the possibility of
heightened tensions between Russia and the West after Moscow recognized
rebel regions of South
Ossetia & Abkhazia. October Nymex crude gained 67 cents to $116.94 a
barrel.
• The yen rallied yesterday against a basket of currencies, hitting a 3
month high against sterling.
Tuesday 26th August 2008 Interbank rates GB POUNDS to EUROS 1.2566 EUROS to POUNDS 0.7957 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
Euro down after worse than expected German Ifo data.
Pounds:
The UK markets were closed for Bank Holiday yesterday and the pound
dropped against the resurgent dollar.
Since Friday cable has now dropped over $4 to trade under $1.84. The
pound faired better against the single
currency as sterling held its ground above the 1.25 level. Sterling has
bounced up this morning after the euro
digested poor economic data from Germany, making the pound rally by
nearly 1 cent to trade around 1.2579
this morning.
Looking ahead to today we have BBA Loans for House
Purchase due at 9.30am.
Data at 9.30am: BBA House Loans.
Euros:
The euro is slightly lower against the dollar and yen today and down
against the pound. A report yesterday
showed money and credit growth in the eurozone is poised to slow sharply
as economies grind to a halt. That
sets the stage for the ECB to embark on a series of interest rate cuts,
just as accelerating money supply triggered
the tightening cycle that began in late 2005. The German Ifo figures
have just been released and came
out worse than expected, weakening the single currency. German Ifo
Business climate was expected at 97.2
coming in at 94.8, Expectations were expected at 90.3 coming in at 87
and Current Assessment expected at
104.8 and the figure came in at 103.2.
General Currency News:
• Oil prices are slightly up today from yesterday, but are down nearly
$6 from the end of last weeks
trade. This is down to contradicting fears of a falling demand and
worries that OPEC might cut production.
Nymex was trading at $115.35 per barrel.
• Gold is down $3.40 at $818 per troy ounce as the dollar rises versus
the euro.
Friday 22nd August 2008 Interbank rates GB POUNDS to EUROS 1.2535 EUROS to POUNDS 0.7978 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
Sterling bounces back against the dollar by over one and a half
cents.
Pounds:
The pound benefited from the dollars weakness yesterday as over one
and a half cents was pulled back on the
greenback. We saw a move from $1.86 to trade over $1.8750, nearly
touching on $1.88. The pound didn't
fair so well against the euro as better than expected economic news
helped the euro take nearly half a cent
from the pound. The pound also lost ground against the yen as the lower
yielding currency was bought as the
markets poured back into risk-aversion.
Looking ahead to today,
investors will be keeping a close eye on
GDP figures due out at 9.30am.
Data at 9.30am: Gross Domestic Product expected at 0.1% from 0.2%
previous, private Consumption
expected at 0.5% from 1.3% previous, Government Spending expected at
0.5% from 1.0%
previous, Gross Fixed Capital expected at –1.2%, GBP Exports & Imports.
Euros:
The euro is finishing the week on a rally, after gaining over one and a
half cent on the dollar yesterday.
Against the pound there was just a small gain of 0.35%. The euros
fortunes against the dollar may depend on
oils next move. So far this morning the euro is slightly lower. The
eurozone economy had recently taken centre
stage, pushing the common currency down from a record high against the
dollar in mid-July. The euros
gains were helped by some robust economic data yesterday.
Traders
unwound speculative long positions in
September bonds after eurozone PMI flash estimates showed the
manufacturing index edged up August from
July. Markets will now look ahead to today’s release of eurozone new
industrial orders at 10.00am.
Data at 10.00am: Eurozone Industrial New Orders expected
General Currency News:
• Oil prices are higher again today after soaring overnight as a crises
depended between Russia and the
West over the invasion of Georgia. Nymex crude was up 26 cents at
$121.44 per barrel.
• Gold is down $1.65 per troy ounce at $833.95
• The yen rallied yesterday as investors poured back into the lower
yielding currencies, as risk-aversion
was back in play. The yen saw over a 1% gain against the pound.
Thursday 21st August 2008 Interbank rates GB POUNDS to EUROS 1.2634 EUROS to POUNDS 0.7915 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
Sterling slides yesterday against the dollar on the back of MPC
minutes.
Pounds:
GB Pound remains under pressure against the dollar after falling below
$1.86 yesterday as UK economic outlook
continues to weigh heavily on the currency. Minutes from the BOE policy
meeting showed that there is a delicate
balance on monetary policy with the committee split three ways. Of the 9
voting members Blanchflower
opted for a rate cut , Besley voted for a rate hike for the second
consecutive month and the seven others
voted for no change. The difference with this and previous months
meetings was that an easing policy was
actually discussed.
The UK focus today is on the retail sector at 9.30
with another fall in activity anticipated
due to massive downturn in consumer spending and tourists to the
country. Its anticipated to come in at 0.3% This
should have another knock on effect.
9.30— Retail sales month on month—Previous –3.9% anticipated— - 0.3%
Euros:
With markets focusing on the respective outlook for the US and euro zone
economies, they will be closely
following this morning’s release of the euro zone flash PMI’s for
August. With the surveys expected to slip
even further below the key 50 level (further highlighting concerns that
the downturn in Europe is worse than
the US), they should limit the potential for any rebound in the euro.
9.00— Flash PMI —Anticipated at 47.0
General Currency News:
• US & Poland Sign massive shield deal which infuriates Russia
• Oil Volatile after US inventory data touches $117.03
• Saudi opens exchange to foreign investors.
Wednesday 20th August 2008 Interbank rates GB POUNDS to EUROS 1.2632 EUROS to POUNDS 0.7916 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
UK Pound continues to trade lower ahead of MPC minutes today.
Pounds:
The Bank of England will take centre stage in the European session
today. Traders will be looking to gauge
the balance of power between the hawks and doves on the Monetary Policy
Committee. We note the possibility
of a rate hike is altogether out of the question as the UK economy
stands on the brink of a recession.
July’s rapid 22% drop in the price of crude oil may have allowed
perennial dove David Blanchflower to recruit
several others to his camp, helping to hasten the pace of monetary
easing. The market is currently pricing in
close to 75 basis points of rate cuts in the next 12 months. During the
July meeting, the minutes revealed a
7-1-1 vote to leave rates at 5.00 percent, with one dissent in favour of
a 25bp hike and one in favour of a
25bp cut. With indicators of growth continuing to deteriorate and
inflation figures reflecting rising prices,
there is potential for there to be yet another split vote this time
around, and such a result is unlikely to have
a big impact on the pound.
Bank of England Minutes due 9.30am
Euros:
The Euro managed to recover from 6 month lows on Tuesday as the German
ZEW survey of investor sentiment
rose more than expected to –55.5 in August from a record low of -63.9.
It appears that falling oil prices
and a weakening euro helped boost confidence in the outlook, which is
similar to what we saw in the latest US
consumer confidence reports. However, investors remain concerned about
current conditions, as this component
was worse than expected at –9.2, down from 17. Nevertheless, the move in
EUR USD likely has more to
do with the fact that the pair was simply oversold.
General Currency News:
• Commodities continued to climb of the recent lows—Oil trading at
$114.81 and Gold at $810.90.
• Russian stocks fall over 7%, adding to the negative external news were
comments from the West regarding
Russia’s actions South Ossetia.
• Condoleezza Rice is in Poland to Finalise a deal to build a US missile
shield, further increasing tensions
with Russia.
Tuesday 19th August 2008 Interbank rates GB POUNDS to EUROS 1.2665 EUROS to POUNDS 0.7895 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
Sterling is continuing to weaken against the US Dollar whilst remaining
flat against the Euro.
MPC member Tim Besley says fighting inflation is tough task faced a
difficult task in fine-tuning monetary
policy to try to help the UK economy whilst also keeping inflation in
down. The balancing act is still very much
alive. He highlighted the fact that keeping inflation at the 2% target
rate was 'not easy in the current economic
climate’.
The BoE has already warned that inflation is likely to stay
high stay even as economic growth
remains “broadly flat”, over the next year whilst we head for a
technical recession. My biggest concern in the
UK is keeping unemployment low. German ZEW data is due out at 10am and
expected to show weakening
confidence in the economic climate. Expect some volatility here in the
GBP/EUR rate (& EUR/USD) as the Euro
weakens on bad news for the economy.
No Data due
Euros:
German July PPI was up 2.0% vs. June, up 8.9 pct year-on-year data
showed this morning at 7am. Producer
prices in Germany rose 2.0 percent in July from June and were up 8.9
percent from July last year, the Federal
Statistics Office said. The last time prices accelerated as quickly was
in October 1981, when prices were up
9.1% on the year, the office added. Expect volatility around 10am
Data Due 10am:
German ZEW Economic Sentiment Forecast -62.0 against previous –63.9
ZEW Economic Sentiment Forecast -65.0 against previous –63.7
General Currency News:
• The Australian dollar fell toward seven-month lows on Tuesday, dragged
down by a fresh bout of risk
aversion
• Irish food group Greencore Plc. said on Tuesday that revenue at its
core convenience foods division fell
7.5 percent in the four months to July 31 due to the strength of the
euro against the British pound.
• Dollar underpinned by commodities drop, yen climbs
Monday 18th August 2008 Interbank rates GB POUNDS to EUROS 1.2665 EUROS to POUNDS 0.7895 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
Average house price plunged 4.8% on the year to mid August
Rightmove.
Pounds:
Business confidence hits new low. According to Lloyds TSB 200
surveyed firms showed nearly 2/3 are more
pessimistic about the UK economy than 3 months ago. “British businesses
are already being squeezed by the
rising cost of raw materials and weakening export prospects in the
slowing European market, despite a
weaker pound.” said Trevor Williams their in house economist.
Last
night’s Rightmove house price data has
done nothing to aid the pound while asking prices for UK homes posting
their biggest annual drop for 6 years
as sellers slash asking prices whilst adapting to the credit crunch and
weaker demand. The average asking
price for a residential property plunged 4.8% on the year to mid-August.
The British Chambers of Commerce
(BCC) will this week become the first leading business group to predict
a recession in Britain. Its quarterly
economic forecast, released tomorrow is expected to say that Britain is
heading into a “technical” recession of
two or more quarters of declining gross domestic product over the next
six to nine months, also forecasting
unemployment is set to climb by up to 300,000. GBP/EURO is currently
trading down 40 pips to 1.2665.
No
data due today.
Euros:
Germany’s government is sticking with its 1.7% GDP growth forecast for
2008 after the economy shrank in
the Eurozone’s second quarter according to Michael Glos (economic
minister). There is no reason for pessimism
at present but also none for celebration, Glos said, as well as
mentioning 'Growth is slowing and risks
are increasing,' he said. Second quarter GDP decreases by 0.5% it’s
first decline in nearly 4 years. Germany’s
neighbouring country France forecast GDP to grow by 0.1% in the next
quarter after business managers
Forecast a decline in industrial activity in coming months.
Trade
Balance Forecast 0.58 previous –1.58
General Currency News:
• Gold jumped more than $10 to near $800 and was up from a nine-month
low, recovering from last
week's sell-off and helping the Aussie dollar climb.
• Market expectations were growing for central banks in Australia and
Britain to cut interest rates in
coming months.
• Federal Reserve is expected to keep U.S. rates on hold for a while in
contrast.
Friday 15th August 2008 Interbank rates GB POUNDS to EUROS 1.2693 EUROS to POUNDS 0.7878 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
Sterling set to continue to slide against the dollar according to
UK banks.
Pounds:
Sterling's slide against the dollar has lasted right till the end of
this week, and worrying signals are that it
could continue. We have now fallen below $1.86 against the dollar, but
the pound has steadied against the
euro, recovering back to 1.26 after hitting 1.2513 yesterday. Some of
Britain’s biggest banks are calling for
the pound to weaken even further with Lloyds, Barclays, HSBC and RBoS
all calling for sterling to weaken
across the board, with the steepest declines coming against the dollar.
Sterling has already slumped to its
lowest in 12 years on a trade-weighted index, which measures it against
a basket of currencies, as the outlook
for the economy darkens. The worlds foreign-exchange traders now seem to
be dumping sterling more
aggressively after Bank of England Governor Mervyn King yesterday gave
the most explicit signal yet that the
bank is more likely to cut than raise interest rates, which in turn may
weaken the pound even more.
No data today
Euros:
The week hasn’t ended any better for the under fire euro, as its slide
against the dollar looks set to continue.
The single currency has now hit a six month low against the dollar. The
euros rally against the pound has
come to a halt as the euro gave up its gains made earlier in the week.
Economic data from the E/zone has
shown the economy has shrunk in the three months from April to June, its
first quarter-on-quarter contraction
since records began in early 1995. After a surprisingly strong start to
the year, the economies of the 15 countries
that share the euro finally succumbed to the global credit crunch, high
oil prices and a strong currency.
No data.
General Currency News:
• Oil prices resumed their downward trend as crude futures moved under
$114 per barrel.
• Gold fell below $800 per troy ounce on poor economic data. This was
the first time it has fallen that
low since December.
• The New Zealand dollar has steadied after better than expected retail
sales figures were released.
Thursday 14th August 2008 Interbank rates GB POUNDS to EUROS 1.2521 EUROS to POUNDS 0.7953 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
Sterling drops on back of Bank of England Quarterly Inflation
Report.
Pounds:
There seems no end in sight for how low the pound can trade against
the dollar at present. Sterling has been
under huge pressure from the greenback since late last week, and found
no support from the Governor of the
Bank of England after yesterday’s quarterly inflation report. Around
10.30am the report was released with
Governor Mervyn King highlighting the inflation pressures the UK is
facing.
The comments the markets seized
on was that although inflation is running extremely high at present, the
governor did expect inflation to drop
over the next two years, and if it dropped too much there may be a case
to cut interest rates. This was the
cue to dump the pound, with sterling dropping three cents in the
afternoon’s trading session. We also saw a
fall against the euro as one and a half cent was lost against the single
currency, falling from over 1.27 to hit
1.2525.
No data.
Euros:
The euro took full advantage of the pounds weakening position yesterday
as we saw a full cent gain made in
the afternoon session. The single currency rallied from 0.7874 to hit
0.7985 after the central bank in the UK
mentioned a possible loosening on interest rates. This took the euro to
a month high against the pound and
has made up the losses seen after Jean-Claude Trichet’s comments last
week.
We have seen a levelling off
against the dollar as the currency pair trade in tight ranges between
$1.4941—$1.4850. German data this
morning has shown its GDP in the second quarter has shrunk 0.5%, its
first decline in almost four years.
Data at 10.00am: Eurozone GDP expected at 1.5% from 2.1%, E/Zone CPI
expec at 4.1% from 4%
General Currency News:
• Oil prices moved up today, getting closer to $117/barrel, as
larger-than-expected drawdown in crude
and gasoline stocks in the US rekindled supply concerns.
• Driving season is underway in the US, but indicators show Americans
got out of their cars, driving 12.2
billion fewer miles in June than in the same month a year ago. Rising
oil prices are blamed.
• The New Zealand dollar recovered some of its recent losses yesterday
as investors moved back into
the higher yielding currencies at cheaper levels.
Tuesday 12th August 2008 Interbank rates GB POUNDS to EUROS 1.2776 EUROS to POUNDS 0.7827 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
Sterling under pressure—mixed economic data halts rally against
the euro.
Pounds:
Sterling had mixed economic data to consume yesterday as the pounds
rally against the euro came to a halt,
just dipping under 1.28 this morning. Cable took another bashing as the
pound fell to a 21 month low to fall
under $1.90 in this mornings trade.
UK retail sales fell again in July
with sales dropping for the fourth time in
five months. Estate agents are now selling just one property a week, as
figures show the worst drop in sales
for 30 years.
Price pressures worsened for the Bank of England as UK
manufactured products rose last month
by 10.2% from a year earlier, marking their fastest annual pace of
increase since 1986, pushing inflation
closer to hitting 5%. It wasn’t all doom and gloom in the housing market
however, as sentiment improved for
the third consecutive month, even though sales fell. The RICS housing
market survey showed seasonally adjusted
net balance of surveyors reporting falling rather than rising prices was
83.9% in July, compared with
86.9% in June.
Data at 9.30am: CPI expected at 4.2% from 3.8% previous,
Core CPI expected at
1.7% from 1.6%
Euros:
The euro was under pressure again yesterday which has continued into
this mornings trading session, dipping
under the $1.49 level against the dollar. The single currencies decline
against the pound came to a halt as
comments from an ECB governing council member, Klaus Liebscher, that
there is no room for compliancy on
eurozone interest rates and high inflation, sparking a short recovery
for the euro. This was in conflicting contrast
to the ECB President who last week surprised the markets by giving a
downbeat growth outlook for the
eurozone, leading markets to write off any chances the ECB might raise
interest rates again soon.
General Currency News:
General
• Oil fell again yesterday, dropping below $113 per barrel amid a
slowdown in global demand, but has
strengthened slightly this morning to $114.46 on growing concerns of the
ongoing conflict between
Georgia and Russia.
• Global woes are posing risks to Spain’s banks. With a housing market
bust taking a toll on Spanish
builders, homeowners and broader economy, the outlook is dimming,
particularly for Spain's system of
local savings banks, which generate roughly half the country’s lending
and deposit taking.
Monday 11th August 2008 Interbank rates GB POUNDS to EUROS 1.2785 EUROS to POUNDS 0.7821 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
Sterling hits three month high against single currency as euro
weakens.
Pounds:
The pound was looking well positioned against the euro at the end of
last week, and has kicked on this morning
with a 3 month high posted against the euro. Sterling has been trading
over the 1.28 level this morning
as markets look to sell the euro. The pounds good fortune against the
single currency has been a reversal of
what's happened in cable over the last few days. The dollars rally has
seen a 20 month low posted for the
pound as sterling dropped to $1.9131. Investors have been buying the
dollar on the assumption that the dollar
will be the first major currency to be seen to get through the financial
downturn the quickest.
Data at 9.30am: Producer Price Index Output YoY expected at 10.3% from
10.0% previous, Visible
Trade Balance expected at –7.400B from –7.494B previous.
Euros:
This week has started out the way last week finished, with the euro
being the currency no one seems to want
to hold onto. The single currency has even seen a substantial sell off
against the pound as a three month low
was posted this morning. The big move was the euro falling below the
$1.50 level against the dollar as a six
month low was posted this morning. Investors are still digesting the
ECB’s President Jean-Claude Trichet comments
late last week, warning of a slowdown in the eurozone in the coming
months, quashing expectations of
higher interest rates.
Data at 9.00am: Italian Consumer Price Index
General Currency News:
• Oil dropped to a 4 month low last week but has since gained over $2 to
trade at $116.66 this morning.
Concerns are mounting amid the escalating fighting between Georgia and
Russia which started last
week. Supply disruptions are once again a major concern with the had of
Azerbaijan’s state oil company
saying that exports had halted via two Georgian ports due to fighting.
BP is facing an alert as
Russian jets have launched an attack on its main pipeline in Georgia.
• Australia’s central bank said on Monday the economy looked to be
slowing enough to significantly reduce
inflation over time, providing scope to ease interest rates.
Friday 8th August 2008 Interbank rates GB POUNDS to EUROS 1.2718 EURO / GB POUND 0.7863 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
Cable hits 1 and a half year low as the dollar rallies.
Pounds:
The Bank of England left rates on hold at 5% yesterday for 4th
straight month, which was widely expected. There was no statement
released only stating it will publish its quarterly inflation report on
August 13th.
The
pound was fairly stable against the dollar and euro after the
announcement, but things soon changed after
the ECB’s press conference following their rate decision. Markets took
the view that the ECB President’s tone had changed too slightly dovish,
prompting the markets to sell the euro. This sent the pound rallying
against the single currency, gaining three quarters of a cent from 1.26
to hit 1.2671, and has continued this morning to trade over 1.27. Cable
on the other hand suffered as the markets sold the euro and bought the
dollar. The pound dropped over 1 cent yesterday but had now plummeted
and shed another one and a half cents to hit a one and a half year low
against the dollar.
No data.
Euros:
It was not the euros' day yesterday as the euro was sold off against the
dollar. The single currency hit a 5
month low on the dollar as investors read into ECB President Jean-Claude
Trichet’s press conference that his
tone had changed to slightly dovish. Even though the ECB left interest
rates unchanged at 4.25% yesterday,
it seems the markets feel interest rates may come down in the eurozone
but remain stable in the US. This
lead to the single currency being battered by the greenback and the euro
has shown no signs of a fight back
this morning.
The euro also lost ground again the pound as a full cent
was dropped, from 0.79 to 0.78 this morning.Data at 9.00am: Italian GDP QoQ expected at 0.0% from 0.5%
previous.
General Currency News:
• The Australian dollar has suffered despite relatively positive
economic data over the last few weeks.
The signals coming from the central bank seem to be pointing to rate
cuts, which in turn have led investors
to sell the Aussie dollar. Sterling has hit a four month high against
the Aussie dollar on the
back of this speculation. There seems to be a similar story for the New
Zealand dollar as the pound has
hit an eight month high against the NZ currency.
• Oil falls over 1 buck as Nymex crude trades at $118.74 per barrel.
Thursday 7th August 2008 Interbank rates GB POUNDS / EURO 1.2682 EURO / GB POUND 0.7885 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
Update: Bank of England leave interest rates unchanged at 5%
Pounds:
Sterling was under pressure again yesterday as the dollar rallied and
the pound digested a damming report
from the IMF. The International Monetary Fund (IMF) heaped more misery
on the Chancellor Alistair Darling
by slashing growth forecasts for the UK economy and warning a recession
was not out of the question. It said
the British economy would grow by just 1.4% this year and 1.1% in 2009
which would be the slowest rate of
growth since 1992. They said they do not see a negative number for
growth in the coming quarters, but when
growth is skating so close to zero, it doesn’t take much of a shock to
see it turn negative.
The pound hit a
seven weak low against the dollar which saw sterling fall under the
$1.95 level. The pounds gains made
against the euro last week seem to be ever decreasing as the rate toys
with dropping below 1.26 this morning.
The Bank of England release their interest rate decision at midday today
and the widely expected view is
for rates to stay on hold at 5%.
Data at 12.00: BoE Interest Rate
Decision expected to be unchanged
at 5%.
Euros:
The euro slipped to a seven week low against the dollar yesterday as
data released on Tuesday night highlighted
that economic growth in Europe is seizing up, and the widely expected
view is the US may be past its
low point.
German manufacturing orders fell for the seventh consecutive
month, defying forecasts of a rise as
foreign orders dropped dramatically. The euro was dragged down below the
$1.54 level but has pulled back
about half a cent in this mornings trade. Against the pound the euro
gained a little as sterling digested more
damming news on its own economy. Watch today for the press conference
which will follow the ECB’s rate
decision.
Data at 11.00am: German Industrial Production expected at 0.8%
from –2.4% previous.
At 12.45: European Central Bank Rate Decision expected unchanged at
4.25%.
General Currency News:
• The yen continued to fall against the pound and dollar in Asian trade
today as the Japanese government
conceded that the country’s longest post-war period of economic
expansion might be over. The
government downgraded its assessment of the economy to “deteriorating”
which marked an admission
that the economy had probably entered a recession.
• Barclays PLC released its first-half net profits which saw a fall of
35%.
Wednesday 6th August 2008 Interbank rates GB POUNDS / EURO 1.2618 EURO / GB POUND 0.7925 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
UK manufacturing shows surprise drop, UK growth falls.
Pounds:
Sterling came under pressure against the dollar in the run up to the
Fed’s interest rate decision yesterday to
trade at a one and a half month low. The pound wasn’t helped by weak
economic data from the UK for the
third day running, weakening sterling's stance against the majors.
The
pound has lost its momentum it had
on the euro which saw the rate rally to over 1.27 in the last two weeks,
but has only fallen back 1 cent to
trade at 1.2619 this morning.
UK manufacturing output and industrial
production both unexpectedly fell on a
monthly basis in June, a result which could cause a downward revision of
the UK’s second quarter economic
growth data. The Bank of England faces obvious problems in making its
interest rate decision on Thursday,
with inflation far above target and rising, there remains a case for an
interest rate increase. On the other
hand the recent weakness of the oil prices may suggest that inflationary
concerns may be somewhat less
acute than they were last month.
Data at 9.30am: BRC Shop Price Index.
Euros:
The single currency has fought back a little this morning after coming
under pressure from the dollar yesterday.
The euro hit over a month low against the dollar but has come back half
a cent this morning. The euros
position against the pound is sill under pressure as economic data
coming out of the eurozone seems to be no
better than the UK’s data.
Retail sales in the eurozone fell at the
fastest annual rate on record in June, indicating
that consumer spending was in free fall even before the European Central
Bank raised its key interest
rate on July 3rd.
Data at 10.00am: German Factory Orders expected at 0.4% from –0.9%
previous.
General Currency News:
• Oil prices are lower today on continued worries about waning demand
amid signs of slowing global
economic growth. Nymex Sept crude was off 49 cents at $118.68 per
barrel. Prices also lost support
from the diminishing threat of a storm in the Gulf of Mexico, home to
major oil installations.
• Spot gold is up $2.30 p at $879.70 per troy ounce after slipping to
$873.50 on the Fed’s comments
about inflation concerns.
Tuesday 5th August 2008 Interbank rates GB POUNDS / EURO 1.2621 EURO / GB POUND 0.7923 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
Sterling drops as British construction activity falls below
expectations in July.
Pounds:
Sterling took a nosedive yesterday after weak
economic data from the UK weighed heavily on the pound. We
saw sterling drop below the 1.26 level against the euro and closed in on
the $1.96 level on the dollar. British
construction activity fell at a record pace showing a further sign that
the sector is weakening sharply in the
wake of the credit crunch. The PMI data showed the index had fallen 36.7
last month, the weakest level since
reading began in 1997, from an initially reported 38.8 in June. Any
reading below 50 signals contraction.
The
banking sector in the UK was also under pressure as some of the major UK
banks posted first half year profits,
clearly showing massive drops from year previous. Northern Rock also
posted losses for the first half of
the year, with a £585.4m loss for the first six months.
A glimmer of
hope for the mortgage market saw the
Halifax announce it was to cut mortgage rates by 0.40%, providing the
beleaguered mortgage market with
some evidence of easing.
Data at 9.30am: PMI Services expected at 46.6
from 47.1 previous. Industrial
Production expected at 0.1% from –0.8% previous.
Euros:
The euro gained on the pound yesterday as the single currency took full
advantage of weak data from the UK.
The euro gained from 0.7882 to hit 0.7945 in afternoon trading. The euro
didn't have such an easy time
against the dollar as the greenback benefited from some positive data
from the states.
Producer prices in the eurozone hit a fresh annual high in June as energy costs continued to
surge. Prices of goods leaving eurozone
factory gates rose 0.9% on the month and 8.05 on the year, above market
expectations for a 0.8% rise on
the month and a 7.9% annual gain.
Data at 10.00am: Eurozone Retail Sales expected at –0.6% from 1.2%
previous.
General Currency News:
• The Reserve Bank of Australia kept rates unchanged at a 12 year high
of 7.25%, but said demand was likely to remain subdued and inflation would decline over time. The
Australian dollar fell sharply
against the pound and the US dollar yesterday after the central bank
said there was scope to move
towards a less restrictive monetary policy , paving the way for future
rate cuts.
• Oil prices fell below $120 per barrel, currently trading at $120.06.
Monday 4th August 2008 Interbank rates GB POUNDS / EURO 1.2642 EURO / GB POUND 0.7910 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
Sterling under pressure from majors as business confidence drops
in UK.
Pounds:
Sterling’s rally against the euro seems to have
fallen flat on Friday and has continued into this morning’s session.
A similar pattern can be seen against the dollar, as the pound succumb
to more weak economic data
from the UK.
A survey by the CBI has showed confidence among Britain’s
manufacturers has fallen across
every region as cost pressures continue to bite. The climb in oil and
other raw material prices over recent
months has driven costs up significantly.
This week we have the Bank of
England’s interest rate decision on
Thursday, where the view is they will leave interest rates on hold at
5%. The combination of record high inflation
and slowing growth means the decision is unlikely to be clear-cut for
the MPC. The Bank alluded to the
possibility of an interest rate hike this month in the minutes of the
July meeting, but since then financial market
jitters have intensified again, retail sales fell back from the large
upside surprise seen in May and commodity
prices have eased.
Data at 9.30am: PMI Construction expected at 37.5 from 38.8 previous.
Euros:
The euro has started off this week in pole position as it has held onto
gains made on Friday. Weak economic
data from the US and UK helped the single currencies stance against the
majors.
The European Central Bank
is expected to keep interest rates on hold at 4.25% Thursday following
July’s 25 basis point hike. The press
conference which follows the rate decision will be watched for any hints
about growth and inflation concerns
ahead of the central bank’s September meeting.
Data at 10.00am: Eurozone Retail Sales expected at –0.6% from 1.2%
previous.
General Currency News:
• Benchmark oil prices are higher today over fresh worries about Iran’s
disputed nuclear program and a
new storm brewing in the Gulf of Mexico, up $1.12 to $126.22 per barrel.
• Australia’s interest rate stands at 7.25% - one of the developed
world’s biggest. The country's Reserve
Bank is not expected to lower rates on Tuesday, but was reported last
week to be considering a cut at
its next meeting.
Friday 1st August 2008 Interbank rates GB POUNDS / EURO 1.2695 EURO / GB POUND 0.7877 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
Oil price lower to $123.26 a barrel due to weaker US Economic
Growth.
Pounds:
Having rallied progressively against the EUR
yesterday to reach a high of 1.2743 this morning GBP lost a lot
of ground against the EUR to currently stand at 1.2684. The U.S figure
caused a strong rally against the Dollar
to reach 1.9929 however hit strong resistance and quickly gave back
those gains to finish approx unchanged
at 1.9829. The board of British Energy have rejected a deal with EDF who
had been expected to announce
a £12bn takeover. The breakdown of the deal is seen as a blow to the
government who hold a 35%
stake in British Energy and would have received £4bn from the deal.
Data at 9:30am CIPS Manufacturing PMI
Euros:
The EUR continues to hold strength despite giving the impression it may
give back some of its gains over the
past 12 months. With regards to GBP 1.30 is an extremely important
figure as it acted as strong support on
the way down and the market appears that it should go and test this
level to check its resistance. Every time
a rally looks underway the rate gets firmly put back in place.
Retail sales in Germany fell more than expected in June to –1.4% month
on month and were down –3.9% on
the year.
Data 9.00am: Manufacturing PMi (down to 47.4 in July from 49.2 in June)
General Currency News:
• Soaring fuel bill hits BA profits.
• Alliance and Leicester half year profits have almost been wiped out
from £290m to £2m due to global
credit crisis.
• Oil giant Exxon Mobil made a profit of $11.68bn between April and
June, breakings its own record for
the highest quarterly profit by a US company.
