Monday, 31 March 2008

€ rates and comments - week commencing 31st March 2008

Sterling lost a bit of ground against the safe haven currencies as expectations of a UK interest rate reduction grew. This was on the back of the Bank of England confirming that funding problems were critical and that they were willing to both make additional liquidity available [i.e. make cash available to the banks] and interest rates more accommodative [i.e. reduce them]. Funding problems are hurting the mortgage market with less cash available and lending rates being increased. Annual house price increases are non existent [at best]. So sterling potters along with no real upside potential, short to medium term, especially against the safe haven currencies.

 

The € is very much the safe haven asset of the moment and sits at €1.258/£1. Business confidence continues to be strong in Germany and also, surprisingly, in France. The European Central Bank continues to highlight the importance of its fight against inflation so no chance of cuts in Euro land interest rates any time soon. So don't expect any gains for sterling against the € any time soon.

 
 
Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)

Weekly Update on GBP, EUR, USD & Commodity-Backed Currencies



Smart Resources


SMART RESOURCES FOR INDIVIDUALS

Free Reports - Make sure to collect your copy!
For overseas property buyers: "Why Overseas Property Buyers Lose Money... and how YOU can avoid it" Get the report here!

For anyone relocating from the UK to another country: "How you could save £20,000 when relocating from the UK to any overseas location!" Get the report here!

Currency Quotation
Are you interested in a currency rate for euros, US dollars or any other currency? If so, please fill out our Smart quotation form.

Smart Articles (For Clients & Press)
Read recent articles published in a variety of publications or request information on our Smart Press page.

Main Smart Currency Exchange Website (for individuals)
Get information on all the Smart services, educational resources and access to our FAQ's plus much more! Visit main website here.


SMART RESOURCES FOR COMPANIES

Currency Report
Have you read our 10-page Currency Report 'Why UK businesses unknowingly lose £££'s on making and receiving international payments...And what they can do to avoid it!" Get the report here!

Currency Quotation
Are you interested in a currency rate for euros, US dollars or any other currency? If so, please call 0808 163 0102 fill out our Smart quotation form.

Smart Articles (For Clients & Press)
Read recent articles published in a variety of publications or request information on our Smart Media page.

Main Smart Currency Business Website
Get information on all the Smart services, educational resources and access to our FAQ's plus much more! Visit main website here.


Disclaimer
Exchange rates can move very quickly. The above rates are valid at a moment in time. We have no crystal ball and we recommend that if an exchange rate works for your budget then don’t wait for an even better exchange rate - Murphy’s Law says the rate will go against you and cause you maximum pain! Suggestions should not be taken as advice or fact.

© 2005-2010 Copyright Smart Currency Exchange Ltd THIS PUBLICATION DOES NOT CONSTITUTE ADVICE WITHIN THE TERMS OF THE FINANCIAL SERVICES ACT (OR ANY SUBSEQUENT REVISIONS, ADDITIONS, OR AMENDMENTS).