www.currencyline.co.uk

By Alex Ellis

Nationwide housing price data was released this morning  at 07:00 this showed that house prices have fallen 0.7% for the last month, this is far below the forecasted drop of 0.3% and therefore has halted the sterling recovery this morning. House prices are generally seen as a good indicator of the health of the economy and therefore this release has been taken quite badly by investors as sterling has fallen 0.25% against the Euro this morning.

Tuesdays UK GDP data could now be key for the long term future of sterling as the economy showed positive growth and therefore seems to have reduced the chances of any extension to the QE programme. The main cause of recent sterling weakness was the risk of an extension to the QE programme, so we could see a period of sterling strength.

If you have an upcoming currency purchase then keep in close contact with a currency broker as the market remains especially volatile at present.

By Alex Ellis

Sterling is currently experiencing a rally as exchange rates have improved by around 1.8% since market open yesterday, this is following UK GDP data which was released yesterday. The predicition was for the economy to slow to a growth of 0.4% whereas in fact it slowed to 0.8%, which is still seen as fairly positive growth.

This meant that sterling improved across the board, although it remains to be seen how long this strength will last. I personally feel that the Euro is heavily overvalued at the moment as the ECB has remained very coy about the future and any form of bailout package. The UK and the US have remained very open about their intentions and this could benefit them in the longer term. If the Eurozone does have to implement austerity measures then these will come as more of a shock because the ECB have remained so quiet.

Yesterday’s GDP figure has prolonged any extension to the Bank of England’s QE programme and could in fact mean that no further extensions will be seen at all.

In any event when the market remains volatile it is sensible to seek the advice of a professional within the industry and in this case this is a currency broker. Using Currency Line you can be put in touch with an award winning currency broker who can help to guide you through the process.

By Alex Ellis

Sterling showed a last gasp rally this morning as rates improved across the board, this seems to be following the GFK German consumer confidence which was released worse than expected. The German economy is often seen as the powerhouse of the Eurozone and any negative releases tend to impact the market fairly heavily. 

However there is the possibilty that this rally could be very short lived as UK GDP data is due at 09:30 (BST) this morning. This data is expected to show a huge contraction from the figure released earlier in the year and therefore is seen as going to cause weakness on the market.

Any economic release can impact exchange rates so if you have an upcoming currency exchange use Currency Line to contact an experienced currency broker to find out how best to combat these.

By Alex Ellis

The UK’s third quarter GDP figures are due to be released tomorrow at 09:30 AM, these are predicted to show an increase to 1.2%. This predicition could be fairly optimistic as retail sales figures released recently were much worse than expected. Retail sales make up around 60% of the UK’s GDP and therefore we could see a surprise tomorrow morning, which could cause sterling to fall even further.

Will there be an end to sterling’s negative run? It seems at the moment that everything is against the currency as the weakness has been so volatile and swift. If you have an upcoming currency requirement then you may want to consider forward booking as this will ensure you protect your position. A currency broker is able to do this for you so if you are interested use Currency Line to contact one.

By Alex Ellis

It has been not only a tough week for sterling but also a tough few months, the market has been left reeling following weaker than expected releases for the pound and the uncertainty surrounding the recovery of the economy. Investors seem to be moving away from the pound and looking towards those currencies seen as less risky, such as the Euro, ZAR and CHF.

If you are looking at buying a property overseas then you are facing some very troubling times, a £200,000 transfer will now achieve you €20,500 less than it would have at the high over recent months. The currency market is very volatile at the moment and has been since the recession first hit therefore if you do have an upcoming currency requirement contact a currency broker who can help to inform you of any impacting factors on your exchange.