Contents of this report
This report will cover the following information that is due to be released in the short term that may affect the cost of buying foreign currency or how many pounds that you will receive when bringing money back.
• U.K GDP Figures
• GBP – USD Hitting lowest since May 2009
• GBP – AUD Recently hit a 25 year low – will they raise rates?? How low can it go?
• Other information that may affect you upcoming transfer
U.K GDP Figures released this morning!
This morning sees an extremely important release for the U.K and indeed the Pound as the revised GDP figures are due out at 09:30am. Expected is for the revision to bring the figure up from 0.1% to 0.2% however I personally would be extremely surprised to see this come out as expected.
With the dire weather seen in the U.K towards the end of last year and the flurry of poor data we saw during that period, alongside the fact that the same release for Germany came out much worse than expected (as detailed in yesterday’s report), I expect to see revised GDP for the U.K to come out worse than predicted leading to losses for the Pound against a basket of major currencies.
“Mervyn King suggesting that failing to act now could pave the way for bigger problems in the future has seen Sterling suffer greatly, I expect this to continue through Friday to end what has been a particularly poor week for Sterling – and there are no signs of it getting any better for next week.” Commented Stephen Hughes, Director at FCD
The same data is due for the U.S at 13:30pm and expected is a figure of 0.6%. Expect Dollar volatility should this come out different.
Should you be worried about the potential cost of an upcoming transfer call us free on 0800 328 5884 and speak to a currency expert who will explain the many options available to you including forward contracts, stop and limit orders.
What do you think?
Being a trader looking after hundreds of clients I am always interested to see what the general public think – Will the Pound suffer once again throughout 2010? Will the Euro plummet once the so called PIGS real problems come to light? Is the Dollar going to continue its forceful rally?
djw@currencies.co.uk is the best route of getting in touch – I welcome your thoughts on the current global economic situation.
GBP – USD Hits lowest level since May 2009!
Dollar buyers and sellers must be aware as the Pound dropped to its lowest level since May 2009 to buy the greenback yesterday, creating fantastic opportunities for those with Dollars to sell and an uncomfortable decision for those looking to buy Dollars.
With the U.K and Euro Zone both looking shaky at the moment investors are rushing to buy gold and U.S bonds as they perceive it as a ‘safer haven’ hence more demand for Dollars and the Dollar gaining strength.
GBP – AUD 25 Year Low
Once again another currency pairing hitting lows not seen in a very long time however it looks like this trend may continue.
The Reserve Bank of Australia meet for their interest rate decision on Tuesday and expectations are for the 4th rate hike in 6 months. A rate hike is generally seen as positive for the currency concerned and therefore points to further potential AUD strength. If you have a purchase of AUD to make it may be prudent to consider your options in advance of what could be an important decision.
Breaking news overnight!
Overnight saw the release of House Price data and Consumer Confidence for the U.K – Consumer confidence came out slightly better than expected and house price data a lot worse – this has led to minor Sterling weakness in early morning trading.
Should you wish to discuss anything in this report and how it may affect a upcoming transfer then contact one of our friendly traders here at FCD on 0800 328 5884 or email me personally at djw@currencies.co.uk
This is a brief summary of todays report for further information on the currency markets or if you have an upcoming transfer to make and want to discuss the options available to you call Daniel Wright on 01494 787462 or email me djw@currencies.co.uk
I assist thousands of clients to send money overseas or receive money from overseas involving the following currencies - Please note I do not deal with cash it is bank to bank only!! AED AUD BHD CAD CHF CZK DKK EUR GBP HKD HUF INR ILS JPY KES KWD MAD MUR MXN NOK NZD OMR PLN SAR SEK SGD THB TRY USD ZAR
Have a great day and thanks for reading!
Daniel Wright
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