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By Jonathan Watson

The last week saw some very volatile trading days. Sterling gained about 4 cents against the Euro and 3 cents against the US dollar. There were also significant gains against most major currencies including AUD, NZD, CAD and ZAR.

Today a report by the one of the policy makers at the Bank of England, Andrew Posen disturbed the markets. He stated that the UK is in a very tricky position following the Emergency budget, setting itself up for an even harder recovery from recession. Whilst he conceded the measures taken were necessary, the tone was not too warm and Sterling lost over a cent against both the Euro and US Dollar.

If you have any currency transfers to make, please use the contact form to speak to an experienced currency trader who can advise the best time to try to secure your currency to make the most of your transfer.

By Alex Ellis

Sterling exchange rates have continued their positive trend overnight following comments by the president of the Bundesbank that Germany’s economy would not fully recover until 2013. Germany is widely regarded as the largest economy within the euro zone and a statement of this magnitude tends to have a dramatic affect on euro exchange rates.

UK GDP figures are due to be released tomorrow and this could have a short term impact on sterling’s gains. The most recent data releases for sterling have been found to be some way short of expectation and therefore this release could follow the trend. If this were to happen then we would expect to see short term losses for sterling.

By Alex Ellis

Sterling exchange rates hit the highest levels seen since Nov 2008 against the Euro once again today, these levels have not come around often since the UK first entered the recession and will therefore come as positive news for anyone who was looking to delve into the currency market.

Against other currency pairings sterling has been gaining strength as well and therefore now is a good time to consider doing any sterling currency transactions that you may have.

By Jonathan Watson

Following yesterdays Emergency Budget, we have seen Sterling strengthen. This presents a great opportunity for anyone buying Euros, US dollars, South African Rands, Kiwi dollars, Ozzie dollars, Canadian dollars and more!

Sterling has strengthened gaining at least a cent against all of the above.

This was anticipated and it is good to see the markets warming well to the budget. The UK’s budget deficit position is one of the worst in the world and urgently needs a tough government prepared to tackle it. The flipside is that such a tough budget might dampen the recovery. We have just come out of one of the worst financial disasters in living memory and the recovery in the UK and the rest of the world is precarious. Many of the measures will not be implemented until 2011 and the effects therefore, may not be felt until later that year and perhaps even in 2012.

Only time will tell the real success of these measures and we will watch this closely to see how it affects the currency markets.

There is without doubt future uncertainty long term, but the short term reaction is Sterling positive, presenting a good time for anyone buying foreign currency with Sterling to make a transaction.

If you have any bank to bank electronic foreign currency transactions to make and wish to acheieve commercial and preferential rates please fill in the contact form and an experienced trader will be in touch.

By Alex Ellis

The UK’s emergency budget was announced today and this is a measure put in place by the coalition to combat growing debt and the UK’s budget deficit. During this announcement we found out that VAT is set to rise to 20% in the UK as well as a number of other measures which are set to be put in place to combat debt.

The currency market reacted very postively to this news and rates have climbed up almost half a percent on this mornings exchange rates. It will be interesting to see what happens in the future as this improvement may simply be a knee jerk reaction to the emergency budget.

 If you are looking at a GBP/EUR currency exchange then use Currency Line to contact an experienced currency broker who can assist.