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By Alex Ellis

Sterling exchange rates have seen a slight boost this morning as Moodys, the credit rating agency said the U.S. and U.K. are in no threat of a downgrade in their triple A credit rating. A triple A rating, is the highest possible rating and means there is almost no credit risk. On the back of this the pound has experienced slight gains against the Euro, and an improvement on the US dollar rates after dramatic losses in recent weeks. Meanwhile later today (9:30 GMT) the Office of National Statistics will release the producer price indexes, these show the rate of inflation experienced by manufacturers when buying goods and services on a monthly basis. A high reading is seen as a positive whilst a low reading is seen as a negative and therefore if the data released swings either way then it will have a considerable affect on the exchange rates. In order to minimise your risk it may be a good idea to buy your currency sooner rather than later or you may end up regretting it.

Meanwhile John Claude Trichet the president of the European Central Bank is due to conduct a press conference at 12:15 (GMT) during which he will outline how the ECB observes the European economy and the value of the Euro. If his comments seem like he will favour an increase in interest rates this will be seen as positive for the Euro and cause exchange rates to move in favour of the Euro, however if it seems from his comments that he may hold interest rates or decrease them then this will be seen as a negative for the Euro and the pound will gain strength.

In US Dollar news at 13:30 (GMT) Retail Sales the US Census Bureau will release Retail Sales figures, this measures the total receipts of retail stores, changes in this tend to show consumer spending. This news could potentially have a large impact on USD exchange rates.

By Alex Ellis

Yesterday saw Alastair Darling address the House of Commons with his pre-budget report, during the initial stages of the report the pound grew slightly stronger on the back of the news there would be no windfall tax on bank profits. However as the address continued the pound lost strength as a rise in National Insurance, Value Added Tax and a tax on bank bonuses were announced. Darling also admitted that his growth predictions for the U.K. economy in 2009 had been drastically wrong, this was seen as a negative for the pound as in reality he is in the best position to predict such figures.

In other currency news the New Zealand interest decision was announced yesterday at 20:00 (GMT), the decision was to keep the interest levels on hold at 2.5%, this should mean that NZD will gain strength. In the early hours of this morning Australia announced that unemployment levels had decreased to 5.7% this was seen as a positive for the AUD as it shows signs of a healthy economy.

During the course of today there will a number of data release that will affect the currency market; the most notable of which will be released at 12:00 (GMT), the Bank of England will announce their interest rate decision, the prediction for this is that the BOE will keep interest rates on hold at 0.5%. However some analysts believe that a further £20billion will be pumped into the economy, this will be seen as a massive negative for the pound, and could make Sterling Exchange Rates extremely volatile.

Exchange rates have been especially volatile in recent times and towards the end of the year they tend to continue this trend, this will make sending money overseas especially expensive, and in order to ensure you buy currency at the best possible time keep in contact with an experienced currency broker.

By Alex Ellis

Today (12:30 GMT) sees Alistair Darling’s speech regarding the U.K.’s pre budget report which is conducted every year in autumn. During which he addresses the MPs and updates them on the state of the economy and any fiscal changes to be made. Darling has stood by his statement that the U.K. will be able to pay off its debt within four years; however other political parties and financial analyst believe that this is not possible. Darling is also expected to announce a bonus tax for those bankers who are receiving such large bonuses, there have been rumours that if this tax is introduced those within the banking sector will stage a mass exodus.

The expectation surrounding this has caused sterling exchange rates to drop across the board, experiencing heavy losses and meaning that sending money overseas at present is a much more risky business.

By Tom Higham

Sterling fell by over one cent against the US Dollar during trading today and lost over two percent against the Yen while losing ground against the other major currencies on news that the UK could lose their AAA rating from Moodys. The credits rating agency Moody stated that due to the soaring budget deficit the UK was at serious risk of losing its rating which if it was to happen then would seriously dent investors confidence and therefore could see the Pound weaken even further.

If you need to buy foreign currency then complete our contact us form and an experienced currency broker will be in touch to discuss all the options available to you to make sure you get the best exchange rate.

By Alex Ellis

The Currency Market is currently showing adverse movement compared to recent times. The pound has lost significant ground against the dollar over the last few days and although this is good news for those looking to sell Dollars and buy Sterling, for those looking to sell up and move out of Britain this movement shows the levels of uncertainty currently in the market. We often experience drops like this when data or news has been released and has an impact on the market, recently we have had news from Dubai regarding Dubai world and since then this has had a significant effect on the market.

During the course of yesterday’s trading Sterling and US Dollar movement can be attributed to the fact that Moody’s investors have stated that the US and UK have resilient AAA ratings. The moody ratings are an indication of how safe a country is to invest in. This is an example of how a potentially positive data release can have a significant negative effect on the market, and there is a sense of uncertainty surrounding how long this ‘spike low’ will continue.

In order to either take advantage of the low exchange rates or manage your risk in these torrid times, be sure to contact an experienced currency broker. Currency Brokers deal with the currency markets everyday so have a superior understanding of how you may maximise your savings when sending money overseas.