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
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.
Thursday 31st July 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
Consumer confidence in UK falls to lowest level for 30 years.
Pounds:
The pounds recent rally against the euro seems to
have slowed after the UK economy digested more downbeat
data from the beleaguered UK housing market. The pound has now fallen
back under the 1.27 level, but
held steady on cable.
Nationwide Building Society showed UK house prices
posted their biggest annual drop
for more than 16 years in July as the credit crunch and concerns about
the economic outlook continued to
weigh on the housing market. The prices of a typical house fell 1.7% on
the month and 8.1% on the year in July.
Market research firm Gfk has shown that UK consumer confidence has
fallen to its weakest level for
more than 30 years, due to a toxic combination of rising living costs, a
housing market slump and higher
energy costs.
No data.
Euros:
The euro has stabilized this morning against the majors, taking back a
full cent on the dollar and 0.3% on the
pound. Yesterday saw the single currency continue to take the flak from
the majors and the euro was not
helped by its own economic data. Business and consumer confidence in the
15 countries that use the euro
weakened significantly in July after the ECB raised its key interest
rate. The overall measure of economic sentiment
in the eurozone fell to 89.5 from 94.8 in June. It was the largest
monthly fall since October 2001, the
immediate aftermath of the September 11th attacks and much larger than
the drop to 93.0 that was forecast
by economists.
German ILO Unemployment data just out shows rate declined
by 450k to 7.3% in June.
Data at 10.00am: Eurozone Consumer Price Index estimate expected at 1.1%
from 4.0% previous,
Eurozone Unemployment expected at 7.2% unchanged.
General Currency News:
• Oil prices rebounded yesterday by gaining over $5 to trade at $126.98
per barrel. This was driven by
an unexpected decline in US petrol stockpiles.
• The New Zealand dollar continues to be under pressure after business
confidence deteriorated in July.
The National Bank of New Zealand’s monthly business outlook showed a net
8.2% of companies expected
their own business to deteriorate in the next 12 months, compared with
4.0% in June.
Wednesday 30th July 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
Sterling gains on dollar and euro.
Pounds:
Monday saw early losses for the pound against the
single currency, but then gain back over half a cent as
Germany posted weaker than expected economic data. Sterling rallied back
up towards 1.2677, homing in on
the 1.27 levels seen last week.
On the dollar there were more
significant gains made as the greenback came
under fire from a drop in US stock markets. The pound made over a cent
on the greenback and has held onto
those early gains, possibly looking for the $2 level today, if economic
data due today is sterling friendly. Looking
ahead to today, there is a lot of data due from the UK, with mortgage
approvals being the headline figure.
Data at 9.30am: M4 Money Supply, M4 Sterling Lending, Net Consumer
Credit, Net Lending. Mortgage
Approvals expect at 37k from 42k previous.
Euros:
It was a mixed day for the euro yesterday as we saw a slight gain on the
dollar, but all of Monday mornings
gain made on the pound were given up by market close in the UK. The
single currencies gains on the dollar
were a result of the greenbacks sell off after US stocks dropped. The
euros' start to the week against the
pound looked more promising as the euro made over 70 cents on the pound.
But the single currency was then
under pressure as data from Germany showed consumer confidence had
dropped to its lowest levels since
June 2003.
The forward looking consumer climate index for August was
expected at 3.5, but the data released
showed it had dropped to 2.1. This was the signal for the euro to be
sold off and give up all its gains
made earlier in the morning session.
Data at 9.00am: Italian Hourly Wages.
General Currency News:
• The Aussie dollar has come under pressure from other currencies as
Australian business confidence
has remained in free fall. For the month of June it slumped to its
lowest level in 17 years. The data
further confirms a slowdown is underway across the economy and
strengthens the view that the next
move for the reserve Bank of Australia is a cut in interest rates.
• Oil prices are steady with a 36 cent rise from yesterday to trade at
$125.09 per barrel.
Monday 28th July 2008 Interbank rates GB POUNDS / EURO 1.2638 EURO / GB POUND 0.7912 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
UK house prices fall for tenth straight month in July.
Pounds:
Friday was a mixed day for sterling, with gains made
over the dollar, but flat on the euro. GDP 2Q saw growth
hit 0.2%, slightly below forecast, with a sharp fall in housing
construction part to blame.
Hometrack data was
released today and showed UK house prices had fallen for the tenth
straight month in July, and the annual
drop in prices was the deepest since the Hometrack survey began in 2001.
UK house prices fell by 1.2% during
July and were down 4.4% on the year.
UK economic data in the week ahead
are expected to show consumer
credit falling, housing market activity weakening and manufacturing
sector activity slipping further intom
contraction.
No data.
Euros:
The euro made gains on the greenback on Friday, but was mixed on the
pound. The single currency has managed
to hold onto the gains on the dollar over the weekend and pushed on
against the pound, hitting 0.79.
Eurozone consumer price data due Thursday is expected to show an annual
rise of 4.2% for July, owing to
high oil prices. That would be a fresh record high for the measure and
more than double the ECB’s target of
just below 2%. The high rate will make worrying reading for the central
banks rate setters who fret that
higher prices will lead to higher wages.
No data.
General Currency News:
• ANZ, Australia's fourth largest bank by market capitalization, became
the second major Australian
bank in days to announce a major blow-out in credit provisions, warning
profit may fall as much as
25% this financial year due to bad debt.
• Oil prices are steady this morning at $123.71 per barrel, while the
market faces signs of slowing demand
and rising supply.
Friday 25th July 2008 Interbank rates GB POUNDS / EURO 1.2651 EURO / GB POUND 0.7904 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
Sterling gives up its gains made this week on majors after weak
retails sales.
Pounds:
Sterling started out yesterday in an very strong
position against the euro, hitting an eight week high at
1.2753 as the eurozone took a hit from weak economic data. Against the
dollar the pound was also looking
buoyant , trading just under the $2 level, but then came the release of
the UK retail sales. It showed retail
sales posted their sharpest drop for 22 years in June, reversing May's
sharp gain and lending weight to the
view that consumption is weakening. The volume of retail sales fell 3.9%
on the month and rose 2.2% on the
year in June, the biggest monthly drop since records began in 1986. The
market had only anticipated retail
sales to drop 3% on the month, so the drop took the city by surprise.
Looking ahead to today, the key data
due is Gross Domestic Product expected at 0.3%, unchanged from previous.
Data at 9.30am: GDP expected at 0.3% unchanged.
Euros:
On Thursday, Europe's economic situation looked as dark as ever, as the
Ifo Institutes German business climate
fell to a three year low and other European indicators also pointed to
slowing growth, pulling the single
currency down against the majors. Economists have suggested France and
Spain may now be in the first
throes of recession after a raft of data suggested growth has slumped
sharply in recent months.
The Spanish
government today slashed its forecast for economic growth after a sharp
leap in unemployment. It coincided
with a set of downbeat PMI’s and slumping consumer confidence surveys
from France, Germany and further a
field in the eurozone. The euro hit an eight week low against the pound,
but then sterling suffered a big hit
from poor economic data of its own, as the euro gained 0.8% to trade at
0.7899. The euro is still under threat
from the dollar, as rallying calls from Fed speakers in the US for a
strong dollar, continue to push EUR/USD
lower.
Data at 9.00am: Eurozone 3M expected at 10.4% unchanged.
General Currency News:
• Gold us up $1 at $927.50 per troy ounce as it holds steady, with
commodities slowing gradually.
• World oil prices held steady in Asian trade this morning in a market
clamed by slowing global demand. Nymex crude was up slightly at $125.51
per barrel.
Thursday 24th July 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
Bank of England Minutes show split of 7-1-1 in interest rate vote.
Pounds:
Sterling rallied yesterday against both the euro and
dollar, with nearly one and a half cents made on the euro
and over a full cent on cable. This morning has seen a slight correction
on the euro but the pound is still sitting
pretty above the 1.27 level. The dizzy heights of 1.2753 which was hit
last night was the month high, last
seen on June 20th. This morning has seen a dollar rally, so the pound
has now dropped below the $2 barrier.
Yesterday saw the Bank of England’s Minutes released, which showed the
Monetary Policy Committee voted
in a three way split, 7-1-1 to keep interest rates unchanged at 5% in
July. The committee discussed whether
an increase in interest rates was necessary, but the majority concluded
that keeping rates on hold when the
economy was slowing was already demonstrating the banks commitment to
reducing inflation.
Data at 9.30am: Retail Sales expected at –2.6% from 3.5% previous.
Euros:
Weak European economic data and tumbling oil prices knocked the euro of
its perch yesterday as the single
currency gave up over a cent on the dollar and nearly 1 and a half cents
on the pound. On EUR/USD, we have
seen $1.5667 reached this morning and technical charts flagging further
losses for the single currency to
$1.5467, and possibly $1.5301 in coming days. Yesterday saw factory
orders in the eurozone post their biggest
drop on the year for almost five years in May after a slump across all
sectors, particularly transport
equipment. New industrial orders in the 15 countries that share the euro
fell 3.5% on the month and 4.4% on
the year in May, marking the biggest drop on an annual basis since
August 2003 when they slumped 5.4%.
Data at 9.00am: German IFO—Expectations — at 93.2 from 94.7 previous,
Eurozone Current Account
, Eurozone PMI Manu. expected at 48.7 from 49.2 previous.
General Currency News:
• The New Zealand dollar fell 1% to a six month low after the central
bank cut interest rates, and
flagged more easing to come to cushion an economy which may already be
in a recession. The quarter
percentage point cut to 8.% had been viewed by the market as a close
call, but the kiwi still tumbled
after the rate decision.
• Oil is lower today amid signs of weakening demand in the US continues,
with Nymex Sept at $123.89.
Wednesday 23rd July 2008 Interbank rates GB POUNDS / EURO 1.2739 EURO / GB POUND 0.7850 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
Bank of England Minutes due today in UK
Pounds:
Sterling kept its recent gains against the euro
yesterday after a quiet day on the data front both sides of the
channel. The pound is a full cent higher against the single currency
than at the start of the week, with the
euro seemingly under pressure from all sides. The pound is at a 2 week
high against the euro, but has stumbled
against the dollar.
The comments made by various officials in the US
yesterday saw the greenback come
storming back against sterling, with a two cent drop on the dollar, to
trade at $1.9898. The FTSE 100 suffered
again yesterday after Vodafone plunged 14%, the biggest ever one-day
drop in the firms history.
Data at 9.30am: Bank of England Minutes.
Euros:
The single currency was the worst performer yesterday after being hit
with a resurging dollar and firm pound.
We saw the euro drop from a strong position against the dollar,
beginning the day yesterday just under the
$1.60 level, to be nearly two cents lower at $1.5756 with a five hour
session, after Fed comments in the US
and the cost of oil dropping off.
The single currency was also under
pressure after the IMF (International
Monetary Fund) said the euro is overvalued, even though the dollar is
close to its equilibrium value. “In our
view the euro is now overvalued relative to medium term fundamentals.”
Data at 9.00am: Italian Retail Sales MoM expected at 0.0% unchanged.
General Currency News:
• UK mobile phone giant ‘Vodafone’ dragged the FTSE down yesterday after
its share prices dropped
14%, as the group warned that full year revenue would now be at the
bottom of its £39.8bn to
£40.7bn outlook range.
• Oil dropped $3 per barrel to trade at $128.19. Hurricane Dolly looks
set to spare vital energy production
facilities and US growth slows.
• unchanged at 8.25%.
• Record growth was seen by Aldi & Lidl, German discount stores as house
budgets come under pressure
Tuesday 22nd July 2008 Interbank rates GB POUNDS / EURO 1.2575 EURO / GB POUND 0.7952 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
Sterling up against most currencies
Pounds:
Sterling has recovered a little against the euro,
after yesterdays plunge on the back of weak UK housing data.
The pound managed to make back most of its losses against the single
currency and held firm in this mornings
trade. The big move from the pounds perspective has been against the
falling dollar. Late last night the
$2 level was breached , with the gains held onto by the pound going into
this mornings session. It seems the
markets are still not convince that the worst is by any means over with
regards to the mortgage crises in the
US. We will see if the pound manages to push on from these levels,
especially if the mortgage crises in the US
doesn’t sort itself out soon.
Looking ahead for direction this week,
investors will watch closely for the BoE’s
July meeting minutes which will be released Wednesday.
No data.
Euros:
The single currencies move was against the dollar yesterday, as the
dollars decline continued in last nights
trading session. There does seem to be a lot of resistance near the
$1.5950 level, but anymore bad news out
of the US could tip us over the $1.60 barrier. The euro did give up its
gains made against the pound yesterday
after poor UK housing data was released yesterday morning. The eurozone
has been pretty quiet with
data as of late, with the single currency taking a backseat and riding
on other currencies.
Looking ahead to
this week, Thursday sees a lot of data from the eurozone, with German
Ifo, German PMI and Euro PMI figures
due. Italian Trade Balance at 9.00am..
General Currency News:
• World oil prices are easing this morning as initial signs showed
Tropical storm Dolly would likely have
limited impact on energy production in the Gulf of Mexico. Nymex for
August fell 57 cents to $130.47.
• Spot gold is up $1.70 at $967.50 as the euro noses higher against the
dollar and equities see pressure.
• Spain's central government budget swung to a deficit in the 1st half
of the year owing to a sharp slowdown
in the construction sector and higher oil prices.
Monday 21st July 2008 Interbank rates GB POUNDS / EURO 1.2571 EURO / GB POUND 0.7955 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
Bank of England MPC member says UK economy is probably already in a
recession.
Pounds:
The pound has started the week down after Rightmove
released its house prices survey, showing prices are
down 2% on the year. Rightmove also said that stocks of unsold homes had
hit record levels and that mortgage
doubt had virtually wiped out the ‘Spring’ house market.
Sterling has
lost just under 1 cent on the dollar
from Friday to trade at $1.9907 this morning, and a similar loss on the
euro, to trade around 1.2558. Comments
from Bank of England Monetary Policy Member David Blanchflower did
little to prop the pound up, as
he said the UK economy is probably already in a recession and is likely
to contract for three to four quarters.
No data.
Euros:
The euro is slightly higher against the dollar this morning, but the
pair are likely to hold in a tight range this
week ahead of little data risk expected out of the eurozone. Resistance
levels are around $1.5880 and support
at $1.5780. The single currency has seen a rally against sterling this
morning after weak economic data hurt
the pound, gaining from 0.7936 to trade at 0.7965 this morning. In a
busy week for eurozone data, a survey
by Dow Jones said they expect the closely watched preliminary purchasing
managers survey to show further
weakness in July, as tighter credit conditions and surging prices drag
on economic activity.
Germany’s Ifo
confidence index, due Thursday, is also expected to weaken further.
No data.
General Currency News:
• Oil prices are slightly higher this morning after weekend talks in
Geneva aimed at convincing Iran to
halt its nuclear program made little progress. August Nymex crude rose
82 cents to $129.70.
• Spot gold is up $4.05 at $958.65, as safe haven appeal is resurrected
based on concerns for the global
financial system that could push prices even higher.
Friday 18th July 2008 Interbank rates GB POUNDS / EURO 1.2603 EURO / GB POUND 0.7935 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
Oil drops $16 in three days-worries of economic growth and slowing
demand.
Pounds:
The pound is down today and finishing the week with
a limp finish. We have seen cable decline as the Fed has
tried to booster the dollars position, which in turn has been helped by
a fall in oil.
The pound has dropped a
couple of cents from its highs earlier in the week, to trade at $1.9906
this morning. The single currency has
also gained on the pound as the euro has benefited from bullish comments
by the ECB President, regarding
the strength of the euro. There has been nearly a half a cent drop since
8.00am this morning alone.
The
commodity currencies are still strong against the pound, with the Aussie
dollar and Rand particularly going
well against sterling.
Data at 9.30am: M4 lending, Public Finances and Public Sector Net
Borrowing.
Euros:
The euro is ending the week down from its highs of mid-week, after a
statement from the president of the
European Central Bank seemed to deter euro buyers. ECB President
Jean-Claude Trichet said there is a risk of
a wage-price spiral developing in the eurozone, and cited downside risks
for eurozone economic growth. He
also highlighted that it is important that it is in the interest of the
United Sates for a strong dollar, which will
curb oil prices and in turn reduce inflationary pressures in the
eurozone.
This morning we have seen German
Producer Prices surge 6.7% on the year in June, posting their strongest
annual rise since March 1982. The
prices pressure was stronger than expected, as the monthly figure was
seen as a rise to 0.7%, with the real
figure coming in at 0.9% for the month.
Data at 10.00am: Eurozone Trade Balance expected at –1.0B from 2.3B
previous.
General Currency News:
• Oil prices have fallen dramatically this week with a $16 fall in three
days. The steep fall from last
weeks record high of $147.27 opens the door to lower inflationary
pressures, proving breathing space
for central banks caught between slower economic growth and rising oil
and commodity prices. US
crude fell as low as $129.01 before rallying back to $130.54 this
morning.
Thursday 17th July 2008 Interbank rates GB POUNDS / EURO 1.2625 EURO / GB POUND 0.7921 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
UK’s claimant count jobless figure posts biggest rise for nearly 16
years.
Pounds:
It was a mixed day for economic data from the UK
yesterday but the pound managed to keep its recent gains
made on the euro, but dipping slightly against the dollar. Sterling is
managing to hold above the 1.26 levels
against the single currency, but toying with the key support level of $2
on cable.
Experts have commented
that the worst of the turmoil in the mortgage market could be over,
after one of the country’s largest lenders
cut its rates for the second time in as many weeks. Nationwide, the
country's second largest mortgage company,
has dropped the rates on all its mainstream fixed-rate mortgages and
some of its tracker deals for new
customers.
The other data released was not so supportive to the pound,
as the UK’s claimant count jobless
figure posted the biggest rise for almost 16 years in June, marking a
significant deterioration in the labour
market.
No data
Euros:
It looks like support for the euro is starting to wane. We have seen the
single currency hit record highs
against the dollar and near record highs against the pound in the last
week, but evidence has come to light
that investors are starting to loose interest in the euro, seen in its
performance against the yen, where a renewed
rise in risk aversion has helped drive it sharply lower all week. Its
not only risk aversion that’s putting
a halt on the euros recent rally, but evidence that the eurozone economy
is being hit hard by the global slowdown
is on the rise.
Data at 10.00am: Eurozone Construction Output
General Currency News:
• Spain's finance minister Pedro Solbes has stunned the markets with an
admission that his country
faces the worst economic crises in its history as the full effects of
the property crash spread through
the economy.
• Oil is up slightly today to trade at $134.83, after a major fall on
Wednesday, when a US supplies report
showed crude inventories rose in the week ending July 11, confounding
expectations for a drop.
Wednesday 16th July 2008 Interbank rates GB POUNDS / EURO 1.2577 EURO / GB POUND 0.7951 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
UK inflation hits a record high in June to 3.8% on the year.
Pounds:
The pound came out of yesterday's trading session
relatively upbeat as sterling posted a 4 month high on
cable to hit $2.0155, before falling back to $2.0068 in the afternoon
session. Against the euro we also saw a
positive move for sterling as the pound rose from 1.2562 to hit an
intraday high of 1.2619. The pounds move
against the euro started when poor economic data from Germany saw the
single currency plummet against a
basket of currencies.
In the UK we saw UK inflation rise to a record
high in June, intensifying the policy dilemma
faced by the Bank of England as the economy slows. The CPI rose to 0.7%
on the month and 3.8% on
the year in June, the highest annual rate since records began in Jan
1997 and the second consecutive month
that it has been more than 1% point above the BoE’s 2.0% target.
Data at 9.30am: Jobless Claims, Claimant Count Rate, ILO Unemployment
rate, Average Earnings.
Euros:
The single currency hit an all time high of $1.6037 yesterday against
the dollar, as the greenback looked fragile
prior to Bernankes speech to the senate in the US. The euro gained over
one and a half cents on the dollar
but did give back some of those gains after the Fed Chairman addressed
the senate around 4pm.
Against the
pound we saw the single currency loose its grip as we have seen the euro
drop from 0.8017 to 0.7930 over
the last few days.
Data released yesterday saw the German ZEW plummet to
its lowest level on record.
Data at 10.00am: Eurozone CPI YoY expected at 4.0% unchanged.
General Currency News:
• Oil prices plunged yesterday and we saw the steepest fall in 17 years
with a seven dollar drop from
$1.4477 to hit $1.3731 per barrel, now trading at $1.3886. The fall
coincided with US Federal Reserve
Chairman Ben Bernanke’s semi-annual forecast to congress.
• Bank of Canada holds interest rates at 3.0%
Monday 14th July 2008 Interbank rates GB POUNDS / EURO 1.2518 EURO / GB POUND 0.7988 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
UK data this week to show inflationary pressures still growing.
Pounds:
Sterling had its normal mixed bag against its rivals
on Friday, as we saw the usual see-saw sway against the
dollar and euro. The widely publicised troubles with the US mortgage
market made cable move over 2 cents
in the pounds favour on Friday, hitting $1.9961 at the high. Against the
euro, the pound again dropped and
dipped below 1.25 to hit 1.2472 this morning, a 5 week low against the
single currency. Its hard to see this
story not being repeated over the short term as inflationary pressures
still seem to be tying the Bank of England’s
hand on movements in interest rates.
UK data due this week is expected
to show inflationary pressures
are growing on producers and consumers even though economic activity is
slowing down, highlighting the
policy dilemma faced by the Bank of England.
Data at 9.30am: PPI Index YoY expected at 29.0% from 27.9% previous. At
midnight tonight: BRC
Retail Sales Monitor & RICS House Price Balance.
Euros:
The euro was the major benefactor on Friday as dollar woes took the
single currency to near record highs
against the greenback. The problems with the US housing market sent the
euro to an 11-week high against
the dollar to $1.5949—less than a cent of its record peak of $1.6020,
last struck April 22nd. This also helped
the euro reach its highest level against the yen—at Y169.63.
The single
currency rallied against the pound on
the back of this and 0.80 was breached on Friday. Looking ahead, the
markets see the euro trying to break
though the $1.60 barrier in the short term, with fears of further write
downs in the US and the mortgage crises
showing little signs of being under control.
Data at 10.00am: Eurozone Industrial Production expected at –2.3% from
0.9%
General Euro Currency News:
• Investors taking profit sent oil prices lower by more than one dollar
on Monday after supply worries
helped push prices to record highs last week. Nymex for August dipped
$1.15 to $1.43.93.
• Market speculation over the loonie grows, as investors no longer see
the rising cost of oil lending support
to the Canadian dollar.
Friday 11th July 2008 Interbank rates GB POUNDS / EURO 1.2526 EURO / GB POUND 0.7983 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
UK House prices fell 2% in June according to Halifax figures.
Pounds:
The pound gave ground against the EURO and USD
yesterday, weakening before the MPC rate announcement,
and then little changed afterwards. Although generally expected as being
unchanged the main focus will now
be on the release of the minutes in a couple of weeks. There is a strong
possibility of a three way split in the
decision, highlighting just how difficult the decision has become.
Inflation on one side, falling economic
growth and a raft of bad figures and falling consumer confidence on the
other.
The minutes will provide clues
as to which is causing the MPC the most concern and although the remit
is to keep Inflation at 2% if the MPC
were to bolster economic activity you would not expect too many
complaints from the Treasury.
Euros:
The Euro looks vulnerable on Friday, and faces a wall of sell orders at
$1.5800 and above, traders said. Investors
will watch for new Euro-zone economic data for signs of weakness that
could restrain the currency.
Trichet stated that peoples inflation expectations in the Euro zone are
“well anchored” further to the ECB rate
rise last week to 4.25%. Inflation in the 15 nations that share the Euro
hit a 16 year high of 4% in June.
The Euro was unaffected by figures released yesterday showing steep
falls in Eurozone production, highlighting
the economic slowdown under way. France and Italy seemed worse affected
and it is generally expected
that second quarter growth figures will be weak. Whether this knocks
some wind out of the Euro will have to
be seen.
General Euro Currency News:
• 1000GMT OECD Composite Leading Indicators
• World Oil prices continue their rally Friday currently Crude stands at
$1.4366 and looks as though new
highs will be tested.
• China’s trade surplus fell 20% in June Yr/Yr in a sign that the weaker
global economy is hitting exports
Thursday 10th July 2008 Interbank rates GB POUNDS / EURO 1.2572 EURO / GB POUND 0.7954 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
Bank of England expected to keep interest rates unchanged at 5.0%
Pounds:
The pound has rallied since yesterday in the run up
to the Bank of England's interest rate decision due today.
Sterling has gained over a cent and a half on cable and over half a cent
on the euro, although that may be
short lived as the pound has started to give up some of those gains on
the single currency already.
Today we
have the interest rate decision which will dominate in terms of data to
watch out for. The Bank of England are
widely expected to spurn calls for action today to shore-up the
faltering economy and keep interest rates on
hold in a show of its determination to quell soaring inflation. Despite
a barrage of dire figures that have fuelled
fears of a looming recession, the influential Times panel of economic
experts voted by eight to one to
recommend that the Bank holds its fire today.
Data at 12.00: Bank of England expected to keep interest rates unchanged
at 5.00%
Euros:
The euro is on the defensive today against the dollar as tough talk from
the ECB has put the dollar on the
back foot. The European Central Bank stated it will continue to monitor
all developments very closely and its
Thursday rate hike last week will help to fend off second round
inflation effects.
The single currency gained a
full cent on the dollar to trade at $1.5760 this morning. Against the
pound, the euro did tail off yesterday in
the run up to the BoE interest rate decision today, but has now started
to fight back against sterling, to trade
at 0.7953.
Data at 10.00am: Italian industrial Production MoM expected at –0.5%
from 0.7% previous.
Speakers: ECB’s Hurley at 12.00. ECB’s Trichet at 7.45pm.
General Euro Currency News:
• Oil prices are higher today, gaining support from Iran’s test of a
missile that could hit Israel. August
Nymex rose 63 cents to $136.68. Iran is the worlds fourth-largest crude
supplier.
• Australian consumer inflation stayed at a 15 year high in July. The
Reserve Bank of Australia has
warned that it might have to raise interest rates again should
expectations of high inflation feed
through to wage and price behaviour.
Tuesday 8th July 2008 Interbank rates GB POUNDS / EURO 1.2570 EURO / GB POUND 0.7955 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
Recession looming for UK according to British Chamber of Commerce
report.
Pounds:
The British Chamber of Commerce announced Britain
was on the Brink of recession and unemployment is set
to rise 300,000 by the end of next year. In a dire warning it said the
economic outlook for business was “grim
and ominous” and the downturn could be “longer and nastier” than
previously expected.
There was more bad news in the building sector as both Persimmon (house
builder) and Savills (estate
agents) announce disappointing trading results. Persimmon makes 1,100 UK
job cuts stoking up concerns
that the UK will see rising unemployment going forward. Just to round
off the dismal news, Bradford and
Bingley shares fall to record lows as worries about its fund-raising
plans intensified. Worries that this could be
another bank failure in the UK sector are growing with B&B’s inability
to fund at a viable rate being the main
problem.
GB Pound having lost over a cent and a half against US Dollar at one point
yesterday rallied resiliently.
Euros:
Concerns over the Euro zone economy intensified Monday after Germany
reported a 2.4% fall in Industrial
Production in May, sharply weaker than an expected 0.5% rise, and the
third drop in a row. “The pendulum of
expectations is in the process of swinging further away from ECB rate
hikes,” said currency analysts from
Brown Brothers Harriman in New York.
EURO strengthened sharply against
GB Pound yesterday by just over a cent
and has remained at that level since the open this morning. Against the
USD, EURO showed strength rallying
slightly and has held those gains this morning.
General Euro Currency News:
• Quiet day for Market figures being released, looking ahead to BoE rate
announcement Thursday.
• UK May Manufacturing Output Much Weaker Than Expected
• Oil $141.58 small increase on the day
Monday 7th July 2008 Interbank rates GB POUNDS / EURO 1.2629 EURO / GB POUND 0.7942 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
Bank of England expected to keep interest rates on hold at 5.0% this
week.
Pounds:
Sterling has managed to keep hold of its gains
against the euro from late last week after the ECB signalled no
more rate hikes were on the horizon. The pound’s drop against the dollar
however has continued, with sterling
more than 2 cents lower than the same time last week.
Looking ahead to
this week, the growing consensus
is for the Bank of England to leave interest rates unchanged at 5.0%,
but for the central bank to be ready
to cut them in the coming months to head of a recession. After a week of
bleak economic news, pressure on
the banks monetary policy committee which meets this Thursday is
intensifying. For the moment it seems
that the bank will stay in a holding pattern on rates, with the slowing
economy and wage moderation helping
to prevent inflation.
Data at 10.30am: Industrial Production MoM expected at –0.1% from 0.2%
previous, Manufacturing
Production MoM expected at –0.1% from 0.1% previous.
Euros:
The euros' abrupt halt to its strengthening pattern against the majors
came with a bump late last week, and
has continued into this week. It seems the ECB’s President’s comments in
the press conference have been
met warmly by other finance ministers in the European Union. French
Finance Minister ’Christine Lagarde’ has
welcomed the signal that no further ECB rate hikes appear to be in the
pipeline for the immediate future. The
worry with more rate hikes in the eurozone is that the interest rate
differential would increase between the
euro area and the US, which could lead to an overvalued euro and an even
weaker dollar. The single currency
has lost another cent on the dollar since Friday, threatening to drop
below the $1.56 level which is the
first support level, with the second support level at $1.5459.
Data 12.00: German Industrial Production MoM expected at 0.2% from –0.8%
previous.
General Euro Currency News:
• Oil is down $1.52 to $143.77 a barrel as tension seems to ease after
Iran offered to negotiate on its
nuclear drive at the weekend.
• World leaders meet this week at the G8 summit held in Japan, and one
of the hot topics will undoubtedly
be the worrying rise in oil prices.
Thursday 3rd July 2008 Interbank rates GB POUNDS / EURO 1.2517 EURO / GB POUND 0.7989 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
UK high streets take full force of credit crunch.
Pounds:
All eyes will be on the dollar and euro today as
sterling takes a back seat, and goes along for the rollercoaster
ride. The move against the dollar has been beneficial as cable heads
towards the $2 level, which we may see
today if the US jobs data comes in negative for the dollar. It’s a
different story against the euro as the ECB
look set for a rate hike in interest rates, pushing the single currency
even higher against its rivals. We have
seen the pound fall to a three and a half week low against the euro,
with the 1.25 level closing in.
The euro gained on the dollar and pound yesterday and holding steady in
this mornings trade, as players are
looking to see the $1.60 level breached today. Investors are looking to
see if the European Central Bank’s
president, Jean-Claude Trichet, will have some potent comments on
inflation that will trip the wire at $1.60.
Fears of out of control inflation in the eurozone virtually ensure the
ECB will hike interest rates after its policy
meeting today, providing the euro with an even better interest rate
return advantage over the dollar. Price
pressure may even force the ECB to consider more rate rises later on.
Those expectations helped push the
euro to as high as $1.5889 yesterday, a 10 week high and not far from
its lifetime high of $1.6020. The euro
is also looking strong against the pound as it has continued to make
gains over the last few days, with the
key level of 0.80 in sight of being breached, possibly today.
Data
9.00am: E/Zone Service PMI expected
49.5 unchanged. 10.00am: E/Zone Retail Sales MoM expected 0.6% from
–0.7% 12.45pm: ECB
Interest Rate Decision expected at 4.25% from 4.00%. 1.30pm: ECB Press
Conference.
General Euro Currency News:
• Oil has hit a new record high of more than $145 per barrel as the Dow
Jones Industrial Average entered
an official bear market territory for the first time since the current
economic downturn began.
Crude hit another high after US stockpiles unexpectedly fell and Russian
President Dmitry Medvedev
forecast that prices will soon reach $150. latest price is $144.37 per
barrel.
• The credit crunch hit the high street with a vengeance yesterday as
shock figures from Marks and
Spencer wiped £4 billion off the value of Britain's leading retailers.
Wednesday 2nd July 2008 Interbank rates GB POUNDS / EURO 1.2581 EURO / GB POUND 0.7948 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
Sterling under more pressure UK PMI Manuf. contracts sharply in June.
Pounds:
The pound is still looking high against the dollar
although we have seen a slight move down from yesterdays
highs nearing the $2 level. Sterling may be defying gravity here as it
seems the view of flying over the $2
barrier may be short lived. For the moment, weakness in the dollar and
falling global risk appetite are helping
to support sterling as investors unwind short cable positions. The cable
recovery is likely to have most traction
in the coming days as sentiment still strongly suggests there is more
unwinding to come.
Fundamental
factors for selling the pound are rising rapidly as the housing market
goes from bad to worse and consumer
sentiment remaining resilient is falling.
Yesterday we saw Britain's
manufacturing sector contract last month
at its fastest rate since December 2001 as output and new orders fell at
their fastest rate in almost a decade.
The index posted a fall to 45.8 from the previous months figure of 50,
with the markets expecting a figure of
49.8
Data at 9.30am: PMI Construction expected at 43.1 from 43.9
previous. BoE Housing Equity.
Speakers: BoE Bean speaks at 3.30pm.
Euros:
The euro is stronger against the dollar by nearly a full cent this
morning, helped by a buoyant oil price and
constant pressure on the greenback on an economic front. Against the
pound we have seen the single currency
gain 0.7% after poor economic data from the UK was released yesterday.
The markets are waiting for
the ECB meeting tomorrow where it will announce its decision on where
the next move on interest rates will
be. Investors are expecting a rate hike of 25 basis points which would
see the base rate rise to 4.25%, as
well as the ECB to make more hawkish remarks about fighting inflation in
its statement. This would indicate
further rate hikes may be upcoming. If the statement by Jean-Claude
Trichet turns out to be more dovish,
the euro may face some downward pressure straight after any potential
rate hike.
Data 10.00am: Eurozone PPI MoM expected at 0.9% from 0.8% previous, YoY
expected at 6.7%
from 6.1% previous. Speakers: ECB’s Trichet at 8.15am, and
Tumpell-Gugerell at 11.00am.
General Euro Currency News:
• Australia’s May Retail Sales rose to an unexpected 0.7% this morning
from the months previous figure
of –0.2%. The markets were only looking for a small rise to 0.1%. This
will play into a strong dollar
position as interest rates look set to stay high. The Aussie dollar is
also seeing support from strong
commodity prices which see no sign of slowing.
• Oil still buoyant although just off yesterdays highs—trading at
$142.30 per barrel.
Tuesday 1st July 2008 Interbank rates GB POUNDS / EURO 1.2683 EURO / GB POUND 0.7903 The above rates are for indication purposes
only and are not applicable for holiday money.
For holiday money rates
click here
UK Nationwide June House Prices fall for eight straight month.
Pounds:
There has been little movement over the last few
days in the strength of sterling against the majors. Cable is
still in the favour of the pound as the $2 level seems very achievable
over the short term. The view against
the euro is the complete opposite, as the euro looks poised to have a
boost from the ECB if they raise interest
rates this week.
The continuing flow of poor economic data from the UK
just keeps coming with more depressing
reading on the housing market front. UK house prices fell for the eight
straight month in June although
last months decline was the weakest since march, according to the
Nationwide Building Society. In the
latest evidence of the strains in the UK housing market, Nationwide said
prices fell 0.9% on the month and
were 6.3% lower on the year. Yesterday we also saw the Bank of England
report that mortgage approvals fell
to 42k in May from a previous record low of 58k in April.
Data at 9.30am: Purchasing Managers Index Manu. Expected at 49.8 from
50.0 previous.
Euros:
The euro is still holding onto its gains over the pound and dollar as
investors seem poised for the coming interest
rate decision on Thursday by the European Central Bank. Economic data
released this morning has
seen German May Retail Sales rise more than twice faster than expected
after two months of decline.
Retail
sales in Europe's largest economy rose by 1.3% on the month, with
economists only expecting a rise of 0.5%.
The data reinforces expectations that the ECB will raise rates this
Thursday with the news sparking a brief
surge in the euro to a three week high against the dollar.
Data at 08.55am: German Unemployment Change expected at –15k from 4k
previous. 10.00am:
Eurozone Unemployment Rate expected at 7.1% unchanged.
General Euro Currency News:
• The latest surge in oil to a record $143.67/barrel came as tension in
the middle east continues to boost
the liquid gold, confounded by a weak US dollar & inflation hitting a 16
year high in the Eurozone.
• Australia’s central bank held interest rates at 7.25% today. Their
reason for the holding stance was
growing evidence that past hikes were working to cool demand and curb
inflation.
• The New Zealand dollars is under continued pressure as it’s growth
continues to slow faster than anticipated
and the Reserve Bank of New Zealand looks likely to have to cut rates
while many other central
banks are talking of hiking theirs.
