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By Jonathan Watson

Sterling has been performing quite poorly of late. A succession of poor data has seemed to imply the UK’s recovery is anything but certain.

We have seen  mortgage approvals and house prices drop and at the moment there is very little to get excited about.

The short term outlook is it will continue. It may be the case however that as other problems arise with the global recovery the UK will again be seen in a better light. As has happened with the slowdon in the US and debt fears in the eurozone.

One of the underlying positives for the UK is that whilst we are significantly in debt as a portion of GDP, the debt has a much longer maturity period. This means that the debt is due to be repaid over a much longer time compared to other countries. This gives us security in that our path to managing and paying off the debt is easier which gives us stability in steering our way through the recovery.

Other strengths include the pound being very weak in comparism to highs of the last two years, which helps boost our exports and makes us a more competitive nation. Whilst this affect will wear off as the currency strengthens, by the time the pound is trading at (if it does) higher levels  it would be because the recovery is underway and this advantage would no longer be so key (because other drivers in the economy such as retail and the domestic service sector would be in play) .

Such rosy times are apparently far off and we are still hearing talks of the global ‘double dip’ – boy, if I had a euro for everytime I heard that phrase!

Nevertheless in such uncertain times working alongisde a specialist currency broker can seriously aid the prospect of securing favourable rates. To find out more about how we can maximise your exchanges please fill in the contact us form and an experienced trader will be in touch.

By Jonathan Watson

Today we have the US Non – Farms Payroll, a measure of the number of people on the payrolls of non – agricultural businesses in the US. The actual data release measures the change and the figures can be very volatile, since the prediction is often way off the actual number due to the difficulties in compiling accurate figures.

I would expect today to be no different and the anticipated reduction in the figure from -131k to -105k should swing the market.

Sometimes when data releases are positive for the dollar we actually see the dollar weaken. This is because the US economy is seen as a marker for the global economy and if it is performing well, investors are encouraged to put their money into more risky assets.

Considering the volatility and fear still in the market and the release of such an important data release, we could well see some interesting activity today.

To find out more about how currency fluctuations can affect the value of your funds when transferring money abroad, please use the contact form and an experienced currency trader will be able to discuss your requirements.

By Jonathan Watson

One sign of the fear and volatility out there in the global markets is the strength of certain asset classes that are seen as ’safe havens’.

When investors are fearful they look for safe returns and places to invest that do not attract lots of risk. This is why during the global recession the antipodean currencies (New Zealand Dollar and Australian Dollar) have faired well. Their economies were not really affected and as investors poured money in the effects snowballed and the currency strengthened. This is also true of Gold, which has been trading at record highs, and the Swiss Franc.

The Swiss Franc is really benefitting right now both from speculative investment and economic investment. The country today boasted 0.8% GDP growth YoY from 2.6% to 3.4%.

All this positive news is making the Swiss Franc very attractive right now. My opinion is that as long as the uncertainty continues we will continue to see strength from not only the Swiss Franc, but also the US dollar and even the JPY.

To find out more about how to safegueard your currency requirements from currency experts, please fill in the contact from. As currency experts we can assist in making sure your electronic bank to bank transfers are handled professionally and economically.

By Jonathan Watson

Sterling has enjoyed a very favourable couple of months against a host of currencies. Positive GDP data had helped bolster the currency and continued strong retail sales and data releases seemed to reflect that the UK economy was not only moving in the right direction, but that the budget cuts were correct.

The problem is we will not see the real effects of the budget cuts for a few months and only time will tell how successful they have really been. Net mortgage lending showed a major fall yesterday and considering that housing is a major driver of the economy, should this be faltering or not recovering as strongly as required, sterling could be in for a torrid time.

To find out more about securing award winning rates of exchange for electronic bank to bank transfers, please use the contact us form and you can speak to an experienced currency trader who can help maximise your transfer.

By Jonathan Watson

The global recovery is still incredibly weak. There are more and more signs of weakness everyday.

The Irish Republic has today had it’s credit rating downgraded by Standard & Poor’s. S & P have also predicted that net Irish government debt will rise to 120% for 2011. This does not bode well for the economic outlook for the euro. Greece is currently suffering from negative growth and all the signs point to the prospect of the world re entering recession!

The eurozone countries are major consumers of US goods and services and if they are not spending the US suffers. The US as the largest economy is suffering too with high unemployment and weak housing figures in the form of new home sales. Historically the housing market has driven the US out of recession but with such bad news this week can it really be relied on to do this again?

To keep ahead of current market trends that will affect the value of sending money overseas, speak to one of the experienced currency dealers that write on this blog by filling in the contact form. We specialise in overseas electronic bank to bank transfers and can save you money.