EUR/GBP Rate & Comments for 10th June 2010
EUR/GBP - 1.210
Sterling recovered yesterday when investors bought back into the pound after analysts stated that the pound had been oversold on Tuesday following comments by credit rating agency Fitch. In the end, the comments made by Fitch added nothing new to what the markets knew already. Concerns over the deficit and a potential credit rating agency have been around since the start of the year, and many investors have been calmed by the aggressive cost cutting measures that have already been announced by the new government. As a result, the pound hit $1.4578/ £1 and was helped along by a strong performance by stock markets as risk aversion eased slightly. The pound is likely to remain under pressure in the run up to the emergency budget on June 22nd as investors remain cautious. There is a lot of data out today, with the main UK news being the Bank of England’s interest rate decision. Whilst it is expected to remain on hold for the considerable future, there could be volatility if any comments are made regarding the £200bn asset purchasing facility. Call in now to ensure you take advantage of any movement.
In the Euro zone, there was little data out yesterday and the single currency took its lead from general sentiment and reaction to other currencies. With sterling having a strong day, the euro fell towards the 18 month low it hit last week, with the pound firmly back over the 1.21/£1 mark. Out later today, we have the European Central Bank press conference in which the bank will outline this month’s interest rate and monetary policy decision. The press conference can cause considerable volatility if any of the comments made are unexpected. In addition, there is some French unemployment data out this morning. Get in touch with a trader to make sure you are buying at the right time.
Exchange rates change every second - call Smart Currency Exchange for a live up-to-the-minute quote. For individual requirements, visit the SmartCurrencyExchange.com website and for companies visit the SmartCurrencyBusiness.com website.
Showing posts with label new government. Show all posts
Showing posts with label new government. Show all posts
Thursday, 10 June 2010
Monday, 24 May 2010
EUR/GBP Rate & Comments for 24th May 2010
EUR/GBP - 1.160
Sterling recovered on Friday after a volatile week on the currency markets. With last week’s trading dominated by risk aversion related to Greece, the move by Angela Merkel to ban ‘naked short selling’ (selling assets that are not owned in order to profit from their fall in value) saw many investors rushing to buy back sterling and euro positions after having placed bets that they would fall. The pound has strengthened so far this morning and is currently up nearly 0.2% against the US dollar at $1.4480/ £1 and 1.16/ £1 (up 0.9%). On Friday we saw the budget deficit standing at £10bn for the month – the biggest ever shortfall for the month of April. This shows the scale of the task facing the new government, and even with the £6bn of cuts promised by the new chancellor, this is nowhere near enough. However, the cuts need to be finely balanced to ensure that they do not stifle growth – the reason why so many investors are negative about the pound. There is little data out today aside from some house price data. Get in touch now for a live exchange rate, as with the lack of news we could see sterling creep back up before the next piece of poor data.
In the Euro zone on Friday, Germany ratified its 148bn portion of the new rescue programme which helped ease concerns that this wouldn’t happen. However, there are concerns that the difficulties are now translating into troubles for the real economy. Financing costs are on the rise and Spanish workers are planning to strike again. In addition, business confidence dropped on Friday alongside purchasing manager data which fell more than expected. With a bank holiday across most of Europe today and no data released, there should not be too much movement. However, with markets still very jittery over the debt crisis, we could see anything happen. Get in touch now for a live exchange rate.
Exchange rates change every second - call Smart Currency Exchange for a live up-to-the-minute quote. For individual requirements, visit the SmartCurrencyExchange.com website and for companies visit the SmartCurrencyBusiness.com website.
EUR/GBP - 1.160
Sterling recovered on Friday after a volatile week on the currency markets. With last week’s trading dominated by risk aversion related to Greece, the move by Angela Merkel to ban ‘naked short selling’ (selling assets that are not owned in order to profit from their fall in value) saw many investors rushing to buy back sterling and euro positions after having placed bets that they would fall. The pound has strengthened so far this morning and is currently up nearly 0.2% against the US dollar at $1.4480/ £1 and 1.16/ £1 (up 0.9%). On Friday we saw the budget deficit standing at £10bn for the month – the biggest ever shortfall for the month of April. This shows the scale of the task facing the new government, and even with the £6bn of cuts promised by the new chancellor, this is nowhere near enough. However, the cuts need to be finely balanced to ensure that they do not stifle growth – the reason why so many investors are negative about the pound. There is little data out today aside from some house price data. Get in touch now for a live exchange rate, as with the lack of news we could see sterling creep back up before the next piece of poor data.
In the Euro zone on Friday, Germany ratified its 148bn portion of the new rescue programme which helped ease concerns that this wouldn’t happen. However, there are concerns that the difficulties are now translating into troubles for the real economy. Financing costs are on the rise and Spanish workers are planning to strike again. In addition, business confidence dropped on Friday alongside purchasing manager data which fell more than expected. With a bank holiday across most of Europe today and no data released, there should not be too much movement. However, with markets still very jittery over the debt crisis, we could see anything happen. Get in touch now for a live exchange rate.
Exchange rates change every second - call Smart Currency Exchange for a live up-to-the-minute quote. For individual requirements, visit the SmartCurrencyExchange.com website and for companies visit the SmartCurrencyBusiness.com website.
Tuesday, 18 May 2010
EUR/GBP Rate & Comments for 18th May 2010
EUR/GBP - 1.167
The pound suffered yesterday as concerns over the UK’s escalating deficit saw sterling hit a 13 month low of $1.4250/ £1 against the US dollar and slip against the euro. With many investors shying away from highly indebted countries, many analysts expect the downward trend against the US dollar to continue. With no real data released today, the big news was the announcement by the Chancellor George Osborne that the government will create a new independent watchdog to monitor the budget and economic forecasting. In a move similar to Labour’s creation of an independent interest rate setting body early into their first term in 1997, the new Chancellor is looking to ensure that he and his new government are held to account on cutting the deficit. He also announced that the first budget would be announced on June 22nd. With the government committed to delivering £6bn worth of spending cuts in the next year, the markets will be waiting to see exactly where the cuts will come from. Whilst the City is keen on the tough stance on spending, there are concerns that an overly aggressive round of cuts will stifle the UK’s fragile growth. With poor house price figures out yesterday morning, the Chancellor has a lot to prove. Inflation data out later today could cause some movement and many expect the pound to suffer in the run up to the budget. Call in now for a live exchange rate.
In the Euro zone, the single currency had a torrid day slipping to a 4 year low against the US dollar as the markets remained sceptical that the IMF bailout will be enough to stop the wave of risk and poor sentiment towards the region. With Greece expecting the first 14.5bn instalment today, a European Central Bank board member was keen to stress that nobody was questioning the euro in an interview on Austrian radio. With so many European officials seemingly desperate to keep faith in the euro, this may cause a stumbling block in future if the single currency does come into question. Out today we have German economic sentiment and European inflation data. This could see further volatility if it underperforms. Call in now for a live exchange rate.
Exchange rates change every second - call Smart Currency Exchange for a live up-to-the-minute quote. For individual requirements, visit the SmartCurrencyExchange.com website and for companies visit the SmartCurrencyBusiness.com website.
EUR/GBP - 1.167
The pound suffered yesterday as concerns over the UK’s escalating deficit saw sterling hit a 13 month low of $1.4250/ £1 against the US dollar and slip against the euro. With many investors shying away from highly indebted countries, many analysts expect the downward trend against the US dollar to continue. With no real data released today, the big news was the announcement by the Chancellor George Osborne that the government will create a new independent watchdog to monitor the budget and economic forecasting. In a move similar to Labour’s creation of an independent interest rate setting body early into their first term in 1997, the new Chancellor is looking to ensure that he and his new government are held to account on cutting the deficit. He also announced that the first budget would be announced on June 22nd. With the government committed to delivering £6bn worth of spending cuts in the next year, the markets will be waiting to see exactly where the cuts will come from. Whilst the City is keen on the tough stance on spending, there are concerns that an overly aggressive round of cuts will stifle the UK’s fragile growth. With poor house price figures out yesterday morning, the Chancellor has a lot to prove. Inflation data out later today could cause some movement and many expect the pound to suffer in the run up to the budget. Call in now for a live exchange rate.
In the Euro zone, the single currency had a torrid day slipping to a 4 year low against the US dollar as the markets remained sceptical that the IMF bailout will be enough to stop the wave of risk and poor sentiment towards the region. With Greece expecting the first 14.5bn instalment today, a European Central Bank board member was keen to stress that nobody was questioning the euro in an interview on Austrian radio. With so many European officials seemingly desperate to keep faith in the euro, this may cause a stumbling block in future if the single currency does come into question. Out today we have German economic sentiment and European inflation data. This could see further volatility if it underperforms. Call in now for a live exchange rate.
Exchange rates change every second - call Smart Currency Exchange for a live up-to-the-minute quote. For individual requirements, visit the SmartCurrencyExchange.com website and for companies visit the SmartCurrencyBusiness.com website.
Monday, 17 May 2010
EUR/GBP Rate & Comments for 17th May 2010
EUR/GBP - 1.173
Sterling has hit a 13 month low against the US dollar in early trading this morning and also fell against the euro as house price data for the UK raised concerns over the health of the domestic economy. This is a particular worry as the new government is committed to cutting the deficit, therefore investors are concerned that the UK will experience poor growth as a result. A house price survey showed that UK prices in May rose less than they did in April pointing to a slow down in the housing market recovery. The reason for the fall was an increase in supply causing sellers to reduce their price expectations. The pound hit $1.4253/ £1 – the lowest since March 2009 – and also fell against the euro to hit a low of 1.1640/ £1. There is little other data out today and as a result, the pound is likely to continue to trade on sentiment. Call in now for an updated price as we could break through the $1.40/ £1 barrier soon.
In the Euro zone, the euro has hit a 4 year low against the US dollar of $1.2235/1 as sentiment towards the region continues to fall. Concerns that the debt crisis in Europe will undermine the global economic recovery saw Asian stocks fall by 3% overnight – the most since November 2009. This in turn drove risk aversion and saw demand for US dollar surge as a safe haven asset. There is little other data out today in Europe, so expect the sentiment based trading to continue. We could quite conceivable hit $1.15/1 in the next few weeks. Call in now to ensure you don’t lose out.
Exchange rates change every second - call Smart Currency Exchange for a live up-to-the-minute quote. For individual requirements, visit the SmartCurrencyExchange.com website and for companies visit the SmartCurrencyBusiness.com website.
EUR/GBP - 1.173
Sterling has hit a 13 month low against the US dollar in early trading this morning and also fell against the euro as house price data for the UK raised concerns over the health of the domestic economy. This is a particular worry as the new government is committed to cutting the deficit, therefore investors are concerned that the UK will experience poor growth as a result. A house price survey showed that UK prices in May rose less than they did in April pointing to a slow down in the housing market recovery. The reason for the fall was an increase in supply causing sellers to reduce their price expectations. The pound hit $1.4253/ £1 – the lowest since March 2009 – and also fell against the euro to hit a low of 1.1640/ £1. There is little other data out today and as a result, the pound is likely to continue to trade on sentiment. Call in now for an updated price as we could break through the $1.40/ £1 barrier soon.
In the Euro zone, the euro has hit a 4 year low against the US dollar of $1.2235/1 as sentiment towards the region continues to fall. Concerns that the debt crisis in Europe will undermine the global economic recovery saw Asian stocks fall by 3% overnight – the most since November 2009. This in turn drove risk aversion and saw demand for US dollar surge as a safe haven asset. There is little other data out today in Europe, so expect the sentiment based trading to continue. We could quite conceivable hit $1.15/1 in the next few weeks. Call in now to ensure you don’t lose out.
Exchange rates change every second - call Smart Currency Exchange for a live up-to-the-minute quote. For individual requirements, visit the SmartCurrencyExchange.com website and for companies visit the SmartCurrencyBusiness.com website.
Subscribe to:
Posts (Atom)
