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Recession Looms

Tom Higham — Fri, 03 Feb 2012 17:21:54 +0000

Sterling forecast 2011 – Unemployment in the UK causes sterling to lose strength

Alex Ellis — Thu, 20 Jan 2011 10:14:24 +0000

Unemployment figures released yesterday caused sterling to shift from its recent highs, as the rates moved around 1% between the high and low and possibly showing the end of the recent spike seen for the pound.

UK Retail sales are due to be released at 09:30 (GMT) tomorrow morning and these could be the make or break point for future sterling exchange rates. December’s retail sales are considered the most important of the year and predictions are that the figures will come out worse than expected. This owing to the adverse weather conditions seen in the month and the weather would have affected both the online and retail outlets. It is worth noting that this severe weather was nationwide with almost every county being affected so figures could come out much worse than expected.

If this were to happen I would expect that sterling exchange rates would suffer as a result and we may see the mid-market level move around the 1.17 mark compared to the recent highs this would be significantly lower. In any event by using a currency broker you can ensure that you are well informed before exchanging currency and can also tailor contract options to suit your individual needs, both minimising your exposure and reducing your risk.

GBPUSD hits 8 week high!

Jonathan Watson — Tue, 18 Jan 2011 08:38:58 +0000

Sterling reached an 8 week high against the dollar yesterday. Why is this? Well the US dollar benefits from being a ‘safe haven’ currency. That means that in times of fear and uncertainty investors look to the US dollar as a secure option. Recently we have seen funds move away from the US dollar as global economic conditions improve. We saw that as soon as the ECB started buying up european debt bonds confidence in the euro was restored and previously safe haven funds were moved away from the dollar into the euro and other currencies too.

Couple these global developments with a strong pound which is making gains against most majors and you can see why the GBPUSD rate is quite attractive right now. With further discssisons in Europe over the euro crisis, this may yet improve further.

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US dollar weakens on ECB Bond purchase

Jonathan Watson — Fri, 14 Jan 2011 10:10:19 +0000

The US dollar climbed to 1.5850 yesterday, up nearly 3 cents from the average trading level this month. This is presenting a great opportunity for those with US dollar requirements. The reasoning is in my opinion because the ECB undertook a massive purchase of Spanish and Portuguese debt and this helped strengthen the euro as it showed renewed confidence in the euro. Consequently investors who were seeking refuge in the US dollar have moved funds to the euro which they believe is a better option.

If you have currency transactions to make why not get in touch to see if we can offer helpful solutions? As specialist currency brokers we will happily discuss all your options. We can also offer award winning rates that could well save you money!

US Dollar Opportunities

Jonathan Watson — Thu, 13 Jan 2011 08:58:07 +0000

The US dollar will I feel make gains this year as unemployment appears to be coming down. But why then did the dollar lose over a cent in yesterdays trading? Well as happens in the global economy, seemingly unconnected events can via a chain reaction shape events in other spheres of the globe. Yesterday’s bond auction by the Portuguese government strengthened the euro as the ECB stepped in to help keep the interest rate low (relatively speaking).

I think we saw money moved away from the typcially safe haven dollar to the euro as investors were inspired to move money back to the euro. The dollar has really been benefitting of late due to it’s status as a safe haven and we saw it weaken yesterday as investors were moved to the euro.

I still think the euro has many problems to overcome, Spain has a bond auciton today which should be interesting. Looking at the evidence I expect further euro weakness in the coming weeks and consequently dollar strength.

For me this makes current rates very attractive. Why not speak to one of the team here at currencyline to see if we can save you some money on your currency transfer. As specialist currency experts we can make your currency transfers not only quick, easy and hassle free, but more importantly much more cost effective through our award winning exchange rates. Speak to us and find out more!