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By Alex Ellis

GBP/EUR exchange rates have moved fairly dramatically in the last 7 months, currently the difference between the high and low is around 6.7%. Movements of this size will have a considerable effect on any transaction regardless of volume and Thursday 5th August sees the Bank of England announce their interest rate decision for this month.

For the last two months one of the BoE members, Andrew Sentance voted for an interest rate hike, this is the first time for 14 months that any member has voted for a change. If another memeber were to join Sentance then I think that the exchange rates could improve although if he remained the only memember then I would imagine that rates would remain relatively unchanged.

In any event if you are looking at conducting a currency purchase we have a number of tools availible to ensure that you minimise your exposure.

By Alex Ellis

Mervyn King announced yesterday that the UK economy has a considerable way to go before UK interest rates return to normal. This caused sterling to fall sharply however towards the end of the day sterling had regained its feet and levels were picking up once more. The UK have had two positive data releases recently, UK GDP last week and retail sales figures on Tuesday and therefore this should help to keep rates steady for the remainder of the week.

There are continued fears that the USA may be heading towards a double dipped recession, recent data releases have highlighted a retraction in the growth of the economy. This has therefore caused fears to resurface of the possibility of a double dipped recession. If this were to happen then we could witness sterling reclaim some of this year’s large losses. However usually the UK follows suit and we may see the same happen with UK growth in the future.

In order to discuss how any of these topics may affect an upcoming currency purchase then use Currency Line to contact an experienced currency broker who can help to guide you through the process.

By Alex Ellis

The stress tests conducted on Friday have given the Euro a boost against sterling since the announcement that only 5 of the 91 banks tested failed. Although many analysts have criticised the stress tests as they believed they were in fact too easy and not as rigourous as they should’ve been.

For the time being anyway this has caused Euro strength and therefore it is a good time to sell Euros. Using Currency Line you can forward book exchange rates for up to two years in advance, so don’t count yourself out if you do not have the funds available.

By Alex Ellis

Sterling exchange rates have shown some resilience this morning as the losses that have been seen recently seem to have slowed. Sterling has been heavy hit recently following weaker than expected PMI data which showed that the future for the UK is still not certain. A senior member of the Bank of England commented last week that he expected the UK to enter into a double dipped recession, if this were to happen then the effect on exchange rates would be severe.

If you have an upcoming currency requirement then you may wish to conduct this before  we risk going any closer top a double dipped recession, otherwise the impact could make your transaction much more costly.

By Alex Ellis

Sterling exchange rates remained steady this morning following yesterdays losses against the Euro. These losses were experienced following uncertainty surrounding the possibility of a double dipped recession. A senior member of the Bank of England was quoted this week as saying he believed we would enter into a double dipped recession and the market responded to this.

Meanwhile in other news US dollar exchange rates have peaked at the highest levels seen for over 8 weeks. If you are looking at buying levels you are much better off doing this now than you would’ve been a few weeks ago.