This morning at 9:30 sees the release of the Bank of England (BoE) minutes from November’s interest rate decision. While we already know that interest rates were kept on hold at the record low of 0.5% what will keep the currency markets interested is whether the central bank discussed re-introducing the Quantitative Easing (QE) programme.
We have seen in the past each time QE is mentioned Sterling weaken so if you need to send money abroad this morning could be absolutely key. With that in mind it could be worth speaking with one of our dedicated account managers before the data release on 0800 328 5884 who will be able to discuss all the options open to you
UK Inflation Rises
Meanwhile, yesterday morning the latest UK Consumer Price Index (CPI) figures were released which showed a surprise increase in inflation to 3.2%. With inflation so high Mervyn King, governor of the BoE, had to write the fourth letter this year to the Chancellor explaining why this had happened and what the bank were doing to bring it under control.
The struggle to keep inflation in check coupled with the lack of growth in the UK economy makes the predicament the BoE currently face a challenging one. However, the UK economy is not the only one to be facing testing times.
Euro Zone Struggles Continue
The EU president announced yesterday that the European Union is in a “survival crisis” due to the economies debt problems. The spotlight is currently on Ireland and Portugal’s huge debt levels and although Ireland are insisting they do not need to be bailed out (similar to their Greek counterparts prior to the Greece bailout) there is intense speculation the two countries will be forced into receiving a helping hand from the EU.
The pressure is building heavily upon Europe and the European Central Bank (ECB) so it could mean for those looking to purchase Euros over the next couple of weeks there could be some great buying opportunities. I would not be surprised to see exchange rates possibly pushing back up towards the 1.20 marker. So, if you do need to send money overseas contact us today on 01494 725353.
US Dollar
By close of trading yesterday the Dollar had strengthened nearly two cents against Sterling and one cent against the Euro as investors confidence in Europe and the UK remained low. Despite $600bn being recently pumped into the US economy it appears that due to the economic issues in other countries we could be seeing Cable fall back to the mid 1.50’s in the coming weeks. So, if you need to send money to the States speak to one of our knowledgeable currency brokers today.
Other Currencies
The Pound also lost further ground against the New Zealand Dollar (NZD) yesterday as we closed in on the best levels for selling NZD in years. With fears surrounding the major economies mainly, Europe, the UK and in part the US the Antipodean currencies have benefitted strengthening to some of the best levels we have seen. So, if you are looking at selling either Kiwi or Australian Dollars now could be a great time to contact me.
If you are buying a property abroad and want the best exchange rates, just email ajm@currencies.co.uk / call 0800 328 5884 or visit www.currencies.co.uk and quote AJM Blog GBP Sterling USD Dollar EUR Euro NZD Kiwi AUD Aussie DKK Krona CAD Loonie CHF Swiss ZAR Rand THB Baht HKD Dollar CZK Krona TRY Lira SEK Krona NOK Krona
0 comments:
Post a Comment