www.currencyline.co.uk

By Alex Ellis

Sterling hit a four month low versus the Euro as QE concerns again weighed heavily on the pound, however we have since heard that the Anglo Irish bank is in a bad situation and to bail it out around €34 Billion is needed. This news has impacted the Euro and caused sterling to gain marginally in the short term. We may find that this strength is only short term as Ireland is a much smaller economy within the eurozone and other economies are in a much better financial position.

I think that the as the UK budget cuts are due to come into play on the 20th October and if these are considered to severe and damaging to the UK economy then we may well see further weakness for the pound.

The issue for the major economies in the world at present is that it is in their interest to keep exchange rates low as this aids exports and therefore helps to improve the strength of the economy. So we may find that some countries will attempt to aritifically lower exchange rates to encourage exports something we may have seen by members of the MPC announcing extensions to QE.

By Alex Ellis

One of the members of the Bank of England’s MPC, Adam Posen, announced yesterday that the only way to stimulate the UK economy was to reintroduce the Quantitative Easing Programme. This was originally put into place to ensure that the UK economy began to recover however although initially we saw small glimmers of a recovery it is now apparent that the economy is still not recovering as first expected and it is more than likely that QE will indeed be reintroduced.

In Swiss Franc news today sees the KOF leading indicator released at 10:30 (BST), this release highlights the movement of GDP in the Swiss economy, obviously a positive figure is seen as a positive for the exchange rates. Recently we have seen CHF gain 10% against the pound and if this release is released positive then we may see even further swings.

In any event you will want to be well informed before committing to a currency purchase and therefore using Currency Line you can contact an experienced currency broker who has a number of contractual options that can be custom tailored to meet individual needs.

By Alex Ellis

The single most important release of this week is due today as UK GDP figures are released today at 09:30 (BST). Sterling has suffered a lot over the last few weeks losing 4.5%, sterling continues to remain week at present and if GDP figures are released worse than expected then we could see further sterling weakness today and this could continue for the majority of sterling’s future as GDP is often a good predictor of future exchange rates.

By Alex Ellis

Sterling has so far had a relatively queit morning as all eyes and ears are looking towards the Gross Domestic Product (GDP) release tomorrow. GDP measures the total value of all goos and services within the UK and therefore is seen as a clear indicator of the health of the UK economy.

The last few times this has been released we have actually seen negative growth for the UK economy and therefore this has caused sterling weakness. If we were to see a similar release tomorrow then we could expect to see similar results on the currency market.

This release is due at 09:30 (BST) so if you would like any further information, use Currency Line to contact an experienced currency broker who can help to guide you through the process.

By Alex Ellis

The gains seen yesterday for sterling following weak economic data for the UK were indeed short lived as rates once again began to drop during the course of this morning. This is following Business confidence figures for Germany which showed an obvious increase, and a positive release is seen to show a positive outlook for the Euro, sterling has weakened against this currency.

The UK is really suffering at the moment and the Euro seems to have jumped on the back of this. As the Eurozone is such a large economy it is less likely that there will be negative data releases as these are always balanced out by the larger economies positive releases. In the short term I feel that sterling will continue to suffer and therefore if you do have an upcoming currency requirement use Currency Line to contact an experienced currency broker who can help to portect your posistion.