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By Alex Ellis

Today Portugal is set to auction £1.25 billion in bonds in order to raise capital to combat the country’s growing debt. Portugal has categorically stated that it requires no form of bailout, however when Ireland was in a similar situation government officials stated the same. The whole point of today’s exercise is, as discussed an attempt to raise capital however it could actually paint a  much clearer picture of what the future may be for Portugal’s economy.

In the past when Ireland and Greece took the bailout we saw some great buying opportunities for those clients looking to exchange GBP to EUR as the Euro exchange rates weakened as a result. I would expect the same to happen if Portugal were to do the same. However this does not leave the pound totally unscathed, the UK is of course a member of the EU and therefore is required to offer financial aid to any country that faces an economic crisis. This will come at a time when we can ill afford to offer any financial support as our own economy is already struggling.

The auction is due to start at 12:00AM (GMT) so if you would like further information prior or in the aftermath of this release then please feel free to contact us.

By Alex Ellis

The spotlight has once again moved over Portugal as French and German leaders have encouraged the country to take some form of bailout from the IMF. Previously when we have seen other countries fall into financial difficulty the Euro exchange rate has suffered as a result and therefore the predictions are that we could see a similar affect if Portugal falls into turmoil. Tomorrow there is a key bond sale for the Euro zone and this is where Portugal will attempt to raise €20 billion in order to combat the growing debt.

If contagion is witnessed then we could see a bigger monster emerge if Spain follows suit; currently the county’s unemployment stands at 20% and it is in a very precarious position. Spain would require a much larger bailout than Portugal which is rumoured to need around €66 Billion.

Today is a very quiet day in terms of economic data which could affect exchange rates, the only data of note is Canadian Housing Starts at 13:15 which show the strength of the housing market in Canada. Other than this all eyes will be on the bond sale tomorrow and the Bank of England’s interest rate decision at 12:00AM (GMT) on Thursday.

If you are interested in finding out more about any of these releases or how they may impact the value of your conversion then use this site to contact an experienced currency broker who can help to guide you through the process.

By Alex Ellis

Sterling exchange rates have taken a hit this morning as Purchasing Manager’s Index figures have actually shown a contraction, this means that sterling has dropped from its high seen earlier in the morning. However it is worth noting that this figure does not have a significant impact on UK GDP but will cause movement in the short term.

 Sterling is due for an uncertain year as retail sales figures will be massively affected by the adverse weather conditions experienced over the Christmas period. This is clearly the busiest shopping period of the year and therefore if these sales are affected then the exchange rates will suffer as a result.

 Retail sales make up 60% of the UK’s GDP meaning that if this sector struggles or falters then so does the economy as a whole. All eyes will be on the retail sales figures released in about 3 weeks time as these will be seen as a clear indicator of the health of the economy.

If you do have an upcoming currency exchange then we can provide detailed analysis of any upcoming data which may impact the value of your conversion as well as have a number of tools and contract options to help you buy at the best possible time.

By Alex Ellis

Sterling exchange rates are in for a tough year in 2011, there is over the course of the year ample opportunity for exchange rates to both peak and trough. Personally I feel that this year will be most testing owing to the fact that the coalition budget cuts are due to come into play – VAT has in fact risen to 20% today however the market is showing some positive strength for the pound.

Over the course of the year if any announcement is made which shows that the Euro zone debt crisis has become prominent again then we could see further weakness for the Euro, whilst also seeing the pound losing ground against those currencies historically seen as safer havens. This is due to the pound’s exposure to the banks within the Euro zone as any bailout will require some form of intervention from the UK as a member of the EU.

The US dollar has been one of the currencies that has benefited of late from a move towards those currencies seen as safer havens, further QE has been scheduled for this year and it will be interesting to see what affect this has on exchange rates. On Friday unemployment figures are due to be released and this will be the first significant economic release for the US in 2011.

By Alex Ellis

Sterling exchange rates fell a cent yesterday as the market reels in the build up to New Years. In the new year we will see VAT rise to 20% as well as further budget cuts and austerity measures being introduced. If you have an upcoming currency exchange then there is the possibility that GBP/EUR exchange rates will fall further following this.

We have seen recently investors move away from those currencies currently seen as riskier and into those historically seen as safer havens – an example of this is the recent strength seen for the US dollar. At present the pound is still seen as a risky currency as the economy is still not growing rapidly.