The pound started to drop away again in Friday’s trading following much worse than expected retail sales figures for December. This really does highlight the importance of catching spikes in the market when they do arise, as at one point last week Sterling had hit it’s highest point against the Euro since August, against the Dollar for 6 weeks and a basket of major currencies hit levels we have not seen for some time.
It followed a series of reasonably positive releases at the start of the week whereby house prices were on the up, inflation had risen and U.K unemployment came out a lot better than expected. Just catching the rate at right time last week could have gained you over €2500 extra on a £100,000 - € transaction.
These movements really do once again prove why that if you do have a transfer to make it is imperative to have a free, no obligation trading facility open here at Foreign Currency Direct which can be opened in just two minutes by clicking here. Once open you will be allocated a personal account manager who can contact you to inform you of movements throughout the day should you so wish
Recession to come to an end for the U.K?
Tomorrow brings what could well be one of the key data releases of the year for anyone with Pounds to sell or another foreign currency to bring back into Sterling over the course of 2010 as the U.K is expected to officially come out of a recession after the longest seen on record.
This is not set in stone however and those who believe that merely coming out of a recession will lead to instant gains for the Pound be aware as the markets also move well in advance of data releases coming out, mainly off the back of predictions, so should the U.K come out of a recession but growth not be as much in the last quarter as expected then we could actually see Sterling weakness!
The release is due at 09:30am tomorrow so it is key to be in a position to trade should the release not go in your favour for what you are looking to do, a quick call in to your account manager today in advance would be smart thinking as then they can add you to their list of clients to inform of any sharp movements for or against them - call now on 0800 328 5884 to make sure you are one step ahead.
Politics also due to be key this year and in the short term

With political instability being one of the four main factors that will affect the value of a currency clients with upcoming requirements should be aware that the next few weeks and months indeed could once again be a testing time for the Pound.
The recent Dollar weakness seen at points last week was heavily down to Barrack Obama announcing that he is looking to bring in a series of changes that will completely shake up the banking system in the U.S which was taken poorly by investors hence the losses at the start of last week for the Dollar.
Obama’s changes are due to limit the size of banks and their investments in an attempt to minimise the chance of this huge economic meltdown happening again and it will effectively separate investment banks from commercial banks and completely change the way banks are to be run.
That won't help, suggested Rob Nichols, president of the Financial Services Forum, an industry group representing 18 of the largest financial companies.
"Proposals to preemptively break up large, well-managed and well-capitalized banking companies — or to reimpose Glass-Steagall restrictions — are based on a misdiagnosis of the causes of the financial crisis," he said.
It is rumoured that U.K Prime Minister Gordon Brown is considering bring in similar changes in the U.K and should this be announced one would expect to see exactly the same impact on Sterling - Investors dropping bank shares and indeed the Pound to concentrate on more lucrative investments.
Alongside this Gordon Brown is now due to testify in the Iraq inquiry before the General election takes place this year which could also lead to some extremely interesting market movements as personally I would imagine that the publicity of this inquiry can only lead to further political instability and indeed potentially another reason for the Pound to dip.
This is a brief summary of todays report for further information feel free to Email Me -
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Have a great day and thanks for reading!
Daniel Wright
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