EUR/GBP Rate & Comments for 21st June 2010
EUR/GBP - 1.197
Sterling has started the day strongly, rising to a 5 week high against the US dollar of $1.4925/ £1 in early trading. The pound’s strength comes off the back of strong movement in sterling’s favour on Friday, as data showed that the UK’s budget deficit was lower than expected. The UK’s borrowing is still expected to hit 11% of GDP in the coming year, and the main event on the calendar this week is tomorrow’s ‘emergency’ budget which is expected to deliver tough spending cuts and tax hikes. Today’s strength against the US dollar is linked to risk appetite, and many analysts are concerned that there is too much faith in the pound (which has strengthened by over 2% against the US dollar in the last month). There is some anxiety over the pace at which the budget will seek to cut the deficit, as if it is too aggressive, growth could be stifled. Get in touch now to take advantage of current prices, as we could see the pound return towards $1.40/£1 once the markets have had enough time to digest the budget.
In the Euro zone, the single currency had a strong end to the week as concerns eased over sovereign debt problems following stronger than expected demand for Spanish bonds. In addition, there were announcements over bank ‘stress-testing’ that boosted confidence across the region. There is no data out today, but later in the week, there is PMI data that should give a good idea of the direction of industrial production. Call in now for a live exchange rate – especially if you have euros to move into sterling or US dollars, as the euro is higher than it was last week.
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 risk appetite. Show all posts
Showing posts with label risk appetite. Show all posts
Monday, 21 June 2010
Thursday, 17 June 2010
EUR/GBP Rate & Comments for 17th June 2010
EUR/GBP - 1.194
Sterling fell yesterday against the US dollar and euro as the pound failed to hold recent gains as renewed fears surfaced over Spain’s banking system that reduced risk appetite. The day started well for the pound, with UK unemployment data showing that the number of people claiming unemployment benefits fell by nearly 31,000 – 7,000 more than expected. However, there are still considerable headwinds facing the economy such as the pending ‘fiscal squeeze’ that will impact consumers and as such, the unemployment figures did not have as positive an effect as might have been expected. Sterling has weakened further overnight, as the new chancellor George Osborne announced the biggest shakeup of financial regulation since Labour came to power in 1997. Under the new scheme, the Bank of England is to have ultimate control of financial supervision. Any new regulation sends jitters through the financial markets and as a result the pound is down this morning. Out later today we have UK retail sales data that is expected to show a 0.1% increase on last month. Call in now for a live price.
In the Euro zone, CPI inflation came in at 1.6% as expected and the euro ended a 2 day rally against the US dollar. The European Central Bank announced a further 5% premium on Greek government debt being used as collateral for government loans as Moody’s downgraded Greek bonds to ‘junk bond’ status – the lowest credit rating. There is little other data out today. Get in touch now to avoid losing out to poor exchange rates.
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 - 1.194
Sterling fell yesterday against the US dollar and euro as the pound failed to hold recent gains as renewed fears surfaced over Spain’s banking system that reduced risk appetite. The day started well for the pound, with UK unemployment data showing that the number of people claiming unemployment benefits fell by nearly 31,000 – 7,000 more than expected. However, there are still considerable headwinds facing the economy such as the pending ‘fiscal squeeze’ that will impact consumers and as such, the unemployment figures did not have as positive an effect as might have been expected. Sterling has weakened further overnight, as the new chancellor George Osborne announced the biggest shakeup of financial regulation since Labour came to power in 1997. Under the new scheme, the Bank of England is to have ultimate control of financial supervision. Any new regulation sends jitters through the financial markets and as a result the pound is down this morning. Out later today we have UK retail sales data that is expected to show a 0.1% increase on last month. Call in now for a live price.
In the Euro zone, CPI inflation came in at 1.6% as expected and the euro ended a 2 day rally against the US dollar. The European Central Bank announced a further 5% premium on Greek government debt being used as collateral for government loans as Moody’s downgraded Greek bonds to ‘junk bond’ status – the lowest credit rating. There is little other data out today. Get in touch now to avoid losing out to poor exchange rates.
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, 14 June 2010
EUR/GBP Rate & Comments for 14th June 2010
EUR/GBP - 1.204
Sterling fell sharply against the euro and US dollar on Friday afternoon as weak industrial output figures left investors concerned that the UK might slip back into recession. Industrial output was expected to show a rise of 0.4%, but dropped unexpectedly by 0.4%. Manufacturing production also fell. However, in early trading this morning, the pound is up by 0.4% against the US dollar following strong trade in the Asian markets that has spurred risk appetite. We are seeing large swings in volatility based around risk appetite/ aversion – especially in the run up to the emergency budget on the 22nd June. Today sees the release of the first forecast from the newly formed Office of Budget Responsibility. The OBR’s assessment is likely to show that the previous government’s forecast for growth over the next few years were far too ambitious. This will further press the need for fiscal consolidation. Call in now to discuss a strategy going forward.
In the Euro zone, with sentiment towards the region still poor, today’s highlight is industrial production data which is expected to have risen 0.5% - the smallest rise in 5 months. Whilst this is unlikely to have a huge impact, investors will be keeping a close eye on the figures over the coming months to see whether a cheaper euro is encouraging overseas sales and helping to prop up domestic demand in the region. With uncertainty over the UK budget in the next few weeks, we could conceivably see the euro strengthen against the pound this week. Call in now to ensure you don’t miss 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 - 1.204
Sterling fell sharply against the euro and US dollar on Friday afternoon as weak industrial output figures left investors concerned that the UK might slip back into recession. Industrial output was expected to show a rise of 0.4%, but dropped unexpectedly by 0.4%. Manufacturing production also fell. However, in early trading this morning, the pound is up by 0.4% against the US dollar following strong trade in the Asian markets that has spurred risk appetite. We are seeing large swings in volatility based around risk appetite/ aversion – especially in the run up to the emergency budget on the 22nd June. Today sees the release of the first forecast from the newly formed Office of Budget Responsibility. The OBR’s assessment is likely to show that the previous government’s forecast for growth over the next few years were far too ambitious. This will further press the need for fiscal consolidation. Call in now to discuss a strategy going forward.
In the Euro zone, with sentiment towards the region still poor, today’s highlight is industrial production data which is expected to have risen 0.5% - the smallest rise in 5 months. Whilst this is unlikely to have a huge impact, investors will be keeping a close eye on the figures over the coming months to see whether a cheaper euro is encouraging overseas sales and helping to prop up domestic demand in the region. With uncertainty over the UK budget in the next few weeks, we could conceivably see the euro strengthen against the pound this week. Call in now to ensure you don’t miss 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.
Tuesday, 1 June 2010
EUR/GBP Rate & Comments for 1st June 2010
EUR/GBP - 1.186
Sterling had a good week last week gaining ground on greater risk appetite in the markets against the US$ and the . Following the bank holiday here in the UK on Monday we have opened up with sterling slightly up on the euro and slightly down on the US$. This week we have UK purchasing managers indices for both manufacturing and services. Both are expected to be similar to last months figures which if met would show the economy continuing to expand. We also have some housing data for mortgages and house prices. It will be interesting to see how the influence if any of the election in early May has on these figures. But we continue to be in very volatile times with exchange rates moving very quickly. That is why it is so important to get in touch now if you have an upcoming requirement.
The euro zone is still trying to find a way out from its problems with government debt. Various governments are now working out how to cut their costs and as such the markets are getting concerned about how this will affect euro zone growth. Today we have unemployment figures for the euro zone which are expected to be at steady at 10% for the whole euro zone. So the euro zone has huge problems and as such we need to be aware that movements in exchange rates will be continue to be erratic and hence the sooner you get in touch the better.
Exchange rates change every second - call Smart Currency Exchange for a live up-to-the-minute quote. For individual requirements, visit the SmartCurrencyExchange.com website and for companies visit the SmartCurrencyBusiness.com website.
EUR/GBP - 1.186
Sterling had a good week last week gaining ground on greater risk appetite in the markets against the US$ and the . Following the bank holiday here in the UK on Monday we have opened up with sterling slightly up on the euro and slightly down on the US$. This week we have UK purchasing managers indices for both manufacturing and services. Both are expected to be similar to last months figures which if met would show the economy continuing to expand. We also have some housing data for mortgages and house prices. It will be interesting to see how the influence if any of the election in early May has on these figures. But we continue to be in very volatile times with exchange rates moving very quickly. That is why it is so important to get in touch now if you have an upcoming requirement.
The euro zone is still trying to find a way out from its problems with government debt. Various governments are now working out how to cut their costs and as such the markets are getting concerned about how this will affect euro zone growth. Today we have unemployment figures for the euro zone which are expected to be at steady at 10% for the whole euro zone. So the euro zone has huge problems and as such we need to be aware that movements in exchange rates will be continue to be erratic and hence the sooner you get in touch the better.
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.
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