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By Jonathan Watson

In times of uncertainty, investors may look to economic data to help them make decisions. The UK has two of it’s most important data releases due out in the coming days.

Thursday sees the release of the Bank of England (BoE) Interest Rate Decision. At the last decision we saw one member of the Monetary Policy Committee (MPC) vote in favour of an interest rate hike. This strengthened the value of Sterling even though no actual change to the rate occurred. This shows the weight such activity can give to currency movements. The very thought that interest rates ‘may’ be increased, arguably led to Sterling strength.

The GDP figues due Monday may carry even more weight. The original figures were due for release in June but were delayed for as yet unexplained reasons – only that of an ‘error’. This was the final revision to Q1 figures so it seems slightly ominous that such an error would occur now. The figures have only been late twice in their history and there is certainly some cause for concern at this delay so early in the new coalition governments office.

The prediction is more formally not for either of the figures to change. That is that interest rates will be held at 0.5% and the final revision on GDP growth will be 0.3% .

But whilst we expect no movement - any deviance from this would surely stimulate market activity, we might see the merest mention of deviance also cook up some uncertainty.

To make the most of market uncertainty and secure commercial and preferential rates of currency exchange, please fill in the contact form and one of the experienced traders that write on this blog will be happy to advise you how to make the most of your transfer.

By Jonathan Watson

Sterling has weakened off this morning following some negative purchasing data from the UK services industry with a dip reflecting the weak nature of the UK recovery . Similair figures from the European Union held steady, giving rise to a weakening in the GBPEUR pairing. Virtually all of the Sterling gains made in the last two weeks against the Euro have been eradicated following reports that European banks were in slightly stronger positions than anticipated. The Euro had weakened as a result of question marks over their ability to pay back loans to the European Central Bank.

The US dollar continues to trade this lunchtime at a 6 week high. Poor data on jobs seriously affected the currency last week and some analysts see the US heading for a double dip recession. 125,000 jobs were lost in the US last month on the Non – Farms Payroll data. Retail sales account for 2/3 of economic activity so movements here do affect the strength of their economy. This situation is presenting some good opportunities for those with US dollar requirements. So whilst we could see gains should a double dip look likely, the anticipation of continued negative data in the UK makes current levels very attractive.

Sterling has still made gains against a host of currencies recently. Agaisnt the South African Rand, the Canadian dollar and the Thai Bhat we are seeing gains which may be eradiacted if more negative news comes out against Sterling.

To secure preferential and commercial rates of exchange for overseas money transactions through experienced currency traders, please fill in the contact form and we will be happy to help..

By Jonathan Watson

The last week saw some very volatile trading days. Sterling gained about 4 cents against the Euro and 3 cents against the US dollar. There were also significant gains against most major currencies including AUD, NZD, CAD and ZAR.

Today a report by the one of the policy makers at the Bank of England, Andrew Posen disturbed the markets. He stated that the UK is in a very tricky position following the Emergency budget, setting itself up for an even harder recovery from recession. Whilst he conceded the measures taken were necessary, the tone was not too warm and Sterling lost over a cent against both the Euro and US Dollar.

If you have any currency transfers to make, please use the contact form to speak to an experienced currency trader who can advise the best time to try to secure your currency to make the most of your transfer.

By Jonathan Watson

Following yesterdays Emergency Budget, we have seen Sterling strengthen. This presents a great opportunity for anyone buying Euros, US dollars, South African Rands, Kiwi dollars, Ozzie dollars, Canadian dollars and more!

Sterling has strengthened gaining at least a cent against all of the above.

This was anticipated and it is good to see the markets warming well to the budget. The UK’s budget deficit position is one of the worst in the world and urgently needs a tough government prepared to tackle it. The flipside is that such a tough budget might dampen the recovery. We have just come out of one of the worst financial disasters in living memory and the recovery in the UK and the rest of the world is precarious. Many of the measures will not be implemented until 2011 and the effects therefore, may not be felt until later that year and perhaps even in 2012.

Only time will tell the real success of these measures and we will watch this closely to see how it affects the currency markets.

There is without doubt future uncertainty long term, but the short term reaction is Sterling positive, presenting a good time for anyone buying foreign currency with Sterling to make a transaction.

If you have any bank to bank electronic foreign currency transactions to make and wish to acheieve commercial and preferential rates please fill in the contact form and an experienced trader will be in touch.

By Jonathan Watson

Today marks the UK’s Emergency Budget. This is going to be watched very closely and should move the market.

Anticipation is for there to be some severe public sector cuts. Any cuts will obviously go some way to reducing the governments spending but will they go too far, jeopardising our recovery and pushing us back into recession?  Cutting 50000 jobs in the public sector will mean 50000 less employees wages to pay. But it will mean an extra 50000 people potentially claiming benefits and an extra 50000 people with reduced incomes no longer spending on goods and services in the UK. The knock on effects of economic measures can be quite severe and are not always predictable.

There has been some Sterling weakness this morning against both the US dollar and the Euro, in anticipation of this.

Such movement can drastically affect your foreign currency requirements. If you have foreign property to purchase, need to top up a foreign currency account or do a bank to bank foreign exchange transfer, use the contact us form and one of the traders from this site will be happy to discuss the best way to save you money on currency transactions.