ICAEW chief executive Michael Izza said the findings suggest that “the U.K recession is at an end”. He added “While there is no doubt that the U.K economy is on its way to recovery, we shouldn’t underestimate the challenges ahead for businesses.”
Following this release one would have expected a reasonably positive start to the day for Sterling on the markets however throughout the day Sterling actually lost ground against most major currencies.
This poses the question – If Sterling is still losing value off of the back of reasonably positive data for the U.K then just what will happen next time we see a negative release???
If you do have an upcoming transaction to make then it may be prudent to consider your options sooner rather than later, as although many major analysts and indeed myself believe that Sterling is currently undervalued it is also quite widely thought that it may get worse before it gets better. Why not get in contact with one of our friendly and experienced traders on 0800 328 5884 who will happily explain all options available to you to ensure your foreign currency costs as little as possible.
Specific Currency News
EUR - A relatively quiet day on the markets yesterday for Sterling – Euro and first thing this morning at 07:00am saw release of the German Gross Domestic Product figures, which came out at exactly 0.3% as expected however officially confirms they are now out of a recession. Although this is great news for the Euro zone and has caused early morning Euro strength there are many other economies in the Euro zone and this could cause problems further down the line for the ECB on their economic policies. Those of you with upcoming Euro purchases or Euros they are looking to bring back into Pounds may benefit from picking up the phone and discussing the various options available to you including forward contracts, stop and limit orders.
CAD – Yesterday Canadian Retail Sales data was released for Month on Month and Year on Year and both came out better than expected at a level of 1% for both against an expected 0% MOM and 0.2% YOY. This resulted in Sterling losing 1.14% against the CAD over the course of the days trading.
Other major currencies – The Australian Dollar and New Zealand Dollar have enjoyed the last few weeks trading against Sterling with the AUD dropping below the 2 level and hitting a 13 year low alongside the New Zealand Dollar also dropping to lows that have not been seen for a long time. It appears Australia seem to have done extremely well during these global problems and although rates are not great at present they may well get worse before they get better.
The Hungarian Forint also took a minor hit yesterday due to a minor cut in interest rates over there as the MNB decided to shift rates from 8.5% to 8%.
During this volatile period for Sterling it is imperative you are in a position to act fast and be able to book a rate off the back of one phone call. In order to find yourself in this position click here to open a trading facility which is completely free and carries no obligation to trade. Upon doing this you will be allocated a personal and friendly account manager who can keep you up to date with market movements alongside making you aware of any excellent buying opportunities throughout the day.
Data out today
15:00pm – A couple of U.S releases to note including the Consumer confidence data alongside housing price data. Any release that differs to what is expected may cause volatility for the USD so be sure to keep in close contact with your account manager during this release as great opportunities may arise.
This is a brief summary of todays report. Click here to read the full report on our main website
If you are buying a property abroad, and want the best exchange rates, just click on the links below to go straight to our main site, or Email Me
Have a great day and thanks for reading!
Daniel Wright
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