Hi,

This is my first mini blog to offer a short update on the last month and what’s happening in the currency markets.  There have been two main issues on our minds at Currency Solutions recently – how the Euro crash is affecting the markets and how we are going to be able to watch the World Cup day time games. In fact, football is making its way into economic news more than you might imagine. Thanks to the approaching World Cup, retail sales (flat-screen TVs, clothes and alcohol) have surged giving a boost of confidence to the UK recovery. And who said football was just a game?

The amazing currency volatility of the last month has at times been as unpredictable as an England penalty shoot out. It has certainly given us the busiest month that we can remember as clients took advantage of getting 1.20 Euros for every Pound for the first time since 2008.

For Property Secrets clients, the Euro slide and similar weakness in Eastern European currencies is important. My own personal advice on this situation is that it is crucial to remember that the markets are re-adjusting their predictions day by day. Although clients should be aware that the Euro may continue to weaken, the Pound itself is not on safe shores yet. Our new PM outlined yesterday that some severe budget cuts are required to prevent the British debt growing from its current position of £700 billion to £1.4 trillion by 2015. The other major player, the US Dollar, is continuing to strengthen as a safe haven currency for investors who are taking money out of the Euro.

With all this movement, it’s a good idea to monitor the situation. If you are going to be selling Pounds and purchasing Euros, Polish Zloty, Czech Korunas or any other volatile currencies there are several options available to maximise profit and minimise risk. For example, you could fix the rate now for future use or purchase part of your total amount at the current optimum rates and then wait to see if the rates get even better.

You can keep on top of market movements by viewing live rates and accessing our currency converter at www.currencysolutions.com. You can even sign up for an automatic rate alert so that you receive a text when the rates hit a pre-determined level that you choose. To talk about your currency issues – (or if you know of any good websites to watch world cup matches) give me a shout at n.hodges@currencysolutions.com or call 0207 740 0000 and ask for Nigel.

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Nigel Hodges

Senior Currency Executive www.currencysolutions.com