Sterling Euro Dollar forecast - The week ahead

This daily report focuses on key current considerations affecting the foreign currency markets, and how this may vary exchange rates which can have a big impact on the overall cost when you purchase currency and are sending money overseas.

• Dollar remains positive
• Possible strong Euro finish in March
• Creation of a European Monetary Fund gains support

What Are The Prospects For The Euro

Greece has been threatening to play its trump card by asking for assistance from the International Monetary Fund. This would at worst call into question the whole economic foundation of the EU and at least be seen as highly embarrassing for the EU as it as unable to resolve the situation internally.

This elicited a series of supportive statements from France and Germany last week which caused a Euro rally which is unlikely to be undermined by the ZEW Current Situation survey (which gives an indication of German investor sentiment on Wednesday).

The actual form this support will take remains vague however discussions have started regarding the formation of EMF (not the 1980’s band pictured here but instead a European Monetary Fund (a European version of the IMF the international lender of last resort) whilst this will be too late to help Greece now it indicates a recognition of the considerable strengthening of European ties required to rebuild sustainability in the Eurozone.

This will be a complex process but the willingness now to tackle it will provide increased long term strength to Euro value further challenging the pound and maybe challenging the US dollar as a world currency in 2011. Today’s Eurozone employment change figures may stimulate an exchange rate spike if the forecast -0.5% fails to materialise.

Dollars Remains Positive

Wednesdays US interest rate decision is unlikely to increase interest rates but the dollar continued its inexorable rise on the back of US job figures which may indicate that the recovery in the US may be sustained and with Friday’s growth in retail sales from an anticipated 0.1% to an actual 0.3% the number of positive indicators are growing for the US.

Strong US results are creating demand for goods with Japan and China who are using an undervalued yen and renminbi to supply it with imported goods much to US annoyance.

Resource rich economies like Australia are noticing increased demand for their raw materials, many of which are priced in US dollars and on the back of this demand their economy is growing and their currency is strengthening.

One life line that may be provided to sterling may be the housing market, a surge in demand could pull the UK economy back on track by stimulating spending however this morning’s Right Move House Price Index, based on a sample of residential property, came in below expectations at 0.1% for March

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, have business transactions to carry out or need to get money overseas for any other reason 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!

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

Pound Sterling weakness - what is behind it and how long will it last?

The Pound suffered huge losses in yesterday's trading as a number of different factors - these are the following:

A Hung Parliament - Weak Pound

It appears more and more likely that the U.K will end up with a hung parliament following elections in May according to recent polls and with political uncertainty being one of the four main factors that affect the value of a currency - along with Economic stability, acts of terror and acts of god the Pound has weakened dramatically off the back of this.

Markets move on rumour as well as fact and the longer the hung parliment term hangs over the head of the U.K the Pound will find it really hard to shift back up in the right direction.

PIGS seem to have gone to sleep

The so called PIGS of Europe have gone to sleep of late and the Euro Zone seem to have a talent of sweeping problems under the carpet as opposed to the U.K who are quite happy to constantly talk about them.... Enter Mervyn King and Alistair Darling!!

Once these problems in the Euro Zone come back to light we may see Euro weakness again however whether or not Sterling gains because of this will be dependant on what other problems in the U.K have come to light.

Sterling Dollar hits low since May 09

The Pound dropped to fresh lows since 2009 against the USD yesterday and analysts predict there may be further to go.

We all know what happened last year when the Dollar had a good run so beware if you have an upcoming purchase to make.

GBP AUD 25 year lows

Following the 4th interest rate hike in 6 months the Australian economy appears to be handling the global crisis extremely well, how much lower can this go with important GDP figures due out this week for Australia.

GBP CAD also at fresh lows

The Pound also hit fresh lows against the CAD following much better than expected GDP data released over there yesterday, yet another currency pairing that is breaking long term records!

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



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