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By Alex Ellis

EU GDP figures are due to be released today at 10:00 (AM) this morning, we have already seen German GDP figures released and these showed growth of 2%. The effect of these figures on exchange rates intially caused sterling to lose strength however sterling has since rallied and rates are back on the up.

Elsewhere this afternoon sees the US release their most recent CPI and Retail Sales figures, the prediction is for a growth of 0.1% however the recent spate of negative releases for the USA means that this figure could be released worse than expected. If this were to happen then you would expect to see the GBP/USD exchange rate head back towards the 1.60 mark.

If you have an upcoming currency requirement then use Currency Line to contact an experienced currency broker. You can then be informed of any upcoming data releases which could impact the value of your conversion.

By Alex Ellis

The currency market remained volatile yesterday as sterling jumped 1.5% against the Euro, this equates to difference of about €3,570 on a £200,000 exchange. Against the Dollar the movement equated to a difference of $3,500 and the New Zealand Dollar NZD 7,750.

This goes to show how important it is to ensure you are well informed before conducting any form of currency exchange, and with a host of economic data out today the movements could swing even further.

EU Monthly Industrial Production data was actually released worse than expected this has caused sterling to improve once again this morning. Use Currency Line to contact an experienced currency broker to ensure you benefit from this movement.

By Alex Ellis

Today sees the Bank of England Inflation Report which is due to show projections for the 3rd quarter of this year. Inflation has recently been shown to be slowing from 3.7% to 3.2%, although this figure is still well above the 2% target. In this situation the Bank of England would usually raise interest rates however they are unable to do this because the economy remains very fragile and raising interest rates hampers growth.

Towards the end of the year the Coalition government’s spending cuts will also come into play and this will reduce the numbers of jobs and add to the number of unemployed in the UK.

The effect of both of these factors on sterling exchange rates is much more damaging long term than short term; the cuts will not come into play until nearer the end of the year. Sterling is still trading at relative highs against a basket of major currencies so if you are looking to conduct a currency purchase use Currency Line to contact an experienced currency broker. They will have a number of tools available to ensure you minimise your exposure and maximise your return when sending money overseas.

By Jonathan Watson

The Royal Institute of Chartered Surveyors has announced a fall in house prices for the UK. This report has some real weight in analysis for the UK property market and the announcement had today weakened sterling up until lunchtime where we started to see a recovery.

Sterling came back against the euro gaining close to a cent on the day’s low to finish up.

Other big movers today were the dollar. The Federal Interest Rate Decision tonight seems to have triggered some profiteering. Let’s see what the decision delivers. With the US struggling to leave recession and rates so low at 0.25%, their options are fairly limited..

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By Jonathan Watson

The European Central Bank has today voted to keep on hold rates as predicted. The comments following the decision were rather interesting in that they indicate the growing confidence in the eurozone.

Whilst a rate rise would be good for the euro in terms of signalling a recovering economy, I cannot see how such a scenario would arise for a long time. This is because one of the major problems of the euro is that of one single economic policy for a multitude of economies and political wills.

The southern states are suffering from a severe lack of growth and the banks are not really able to lend. Those economies need cheap loans to help them stimulate growth and high interest rates would stifle this and stop people spending too, the opposite of what is needed!

Economically stronger Eurozone states however such as Germany could potentially benefit from an interest rate hike down the line, probably well before one would be required by southern states. The huge difference in economic outlook between for example Spain and Germany means at some point this situation will arise and at that stage it will be interesting to see how the ECB react.

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