The Pound has moved down – but only slightly – overall against the Euro for the first time in several weeks. Overall, since my last blog Sterling has dropped off by 0.51 percent on the Euro meaning we start this week at a rate of 1.237. This was a small dip from the position at the start of last week when Sterling was on a three and half month high on the Euro – this is clearly still a very good rate for recent times; if you need a Sterling to Euro exchange for a property transfer, the slight wobble, could be a key sign to book the exchange rate in now whilst the going is still good.

The reason that Sterling lost out to the Euro over the past week was partly to do with German GDP figures which came in better than expected. The Bank of England quarterly inflation report also crucially left the way clear for more quantitative easing in the UK addressing weaknesses in the UK economy. There were also signs that the uncertainty around the Greek political situation, as well as the fact that Moody’s downgraded 16 Spanish banks, meant that investors were starting to become much more cautious – choosing the much safer US Dollar, as an alternative to the Euro rather than the Pound.

This all meant that the Pound had a bumpy week against the US Dollar - although overall it rose by a small 0.22 percent after some recovery meaning we are now at a rate of 1.580. Ongoing concerns about the UK’s financial and trading ties with Europe are expected to keep some downwards pressure on the Pound against the US Dollar which may continue to strengthen. The Pound has lost 2.5 percent against the Dollar over the past month. Anyone with property exchanges to make in US Dollars is welcome to give me a call to discuss how they can protect themselves from further movements.

This week sees some very significant events meaning that currency movements may be volatile. Tuesday sees inflation, mortgage, house price and retail data from the UK – all of which are significant economic indicators. Wednesday sees the release of the Bank of England minutes – any further indication in these of more support for more quantitative easing in the UK could further damage the Pound. Lastly, Thursday sees UK GDP figures for the UK which could confirm or contradict the ‘return to recession’ – again very significant for exchange rates going forward.

For further advice on how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

The Pound has accelerated further to reach a nineteen month high on the Euro. At a current mid-market rate of 1.220, this is a great time to make a Sterling to Euro exchange or pre-book in any transfers at this rate using a forward contract.

Spanish debt auctions are playing a key role in currency shifts this week, following on from the role that difficult-to-achieve Spanish budget targets have played in making currency investors nervous about the health of the Euro-zone. The first Spanish debt auction earlier this week, went smoothly. With the UK strongly exposed to problems in the Euro-zone, the success of the first auction helped Sterling to maintain its strong position. This includes a rise to a two week high on the US Dollar to a rate of 1.602 as investors became more keen to buy currencies other than the ‘safe’ US Dollar.

UK data has also been positive this week in helping to fuel the Pound. UK inflation rose to 3.5 percent in March - helping to suggest that the Bank of England will not need to inject more stimulus (quantitative easing) into the economy next month which would be negative for the Pound. There was even more evidence for this on Wednesday when the Bank of England minutes from the last policy meeting revealed that policy members voted 8-1 against further stimulus. Significantly, this meant that one policy member in particular, Adam Posen, had changed his mind since the last meeting making it much more unlikely than more stimulus will be introduced and pushing the Pound even higher.

Sterling’s strong position will be tested today however when Spain holds another auction to try and sell ‘longer-dated’ debt. This is a more difficult auction for Spain than the one held earlier in the week. Should this go well however, Sterling could find even more strength particularly on ‘safe’ currencies such as the US Dollar.

Other events that could have an impact on exchange rates before the end of this week, include events and statements made at the G20 meeting today, as well as European consumer confidence statistics and figures on US home sales. Retail figures from the UK on Friday are expected to be fairly disappointing so bear in mind that this could influence Sterling’s currently robust position. Feel free to give me a call if you’d like me to keep an eye on rates for you this week.

For further advice on how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

If you need a strong Sterling exchange rate against the Euro, you’ll be pleased to hear that the Pound hit a two and a half month high against the European currency before the Easter weekend. This puts Sterling at a rate of 1.213 against the Euro at the start of this week, which for recent times, is a very strong position.

Sterling’s climb on the Euro was mainly due to fears throughout last week about Spanish borrowing costs and the ongoing Euro zone debt crisis. It was also helped along however, by better than expected UK data in the three areas of manufacturing, construction and services. This strengthened hopes that the U.K may avoid recession.

In contrast, Sterling did not perform well against the US Dollar overall last week. Having started the week by reaching a four and a half month high on the US currency, the Pound has fallen back down to a rate of 1.586. This movement reflected the improvement in US unemployment revealed last week, as well as the surprising news revealed in the Federal Reserve minutes that only two out of ten US policy makers were in favour of introducing more monetary stimulus – indicating that the US economy was perceived to be getting stronger.

What is the picture for the Pound going forward? In the short term, this week sees the US monthly budget statement on Wednesday followed by the European Central Bank monthly report, the UK trade balance and the US trade balance. These three events may help bring shifts in exchange rates as they will allow currency investors to easily compare the outlook on these three economies.

The more general picture for the Pound going forward into May and beyond is built on an increasing anticipation about the Bank of England's monetary policy decision in May. The current asset-purchasing programme finishes in May so whether policy makers feel it necessary to introduce more quantitative easing to help support the economy, is likely to be a major influence on the currency markets. A decision to introduce more quantitative easing would be likely to weaken Sterling, whereas a decision to not do so, will help incite more confidence in the economy and make the way clear for Sterling to strengthen.

For further advice on how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

It’s been a good week for the Pound which is up to a mid market rate of just above 1.20 on the Euro and 1.58 on the US Dollar. Property investors needing to convert Sterling into another currency should consider whether they’d like to fix current exchange rates for any upcoming transfers. The UK currency has grown by 1.08 percent on the US Dollar and 0.68 percent on the Euro over the past seven days, as well as hitting a ten week high on a basket of currencies, and an even stronger nine month high on the Japanese Yen.

This position is precarious however - and was largely due to negative data in the US, rather than signs that the UK economy is picking up. US inflation data at the end of the week was particularly weak and helped to give the Pound a boost. This counter-acted some of the weak UK data that was released last week such as unemployment figures released on Wednesday that stayed at a thirteen year high. Fitch Ratings Agency also put the UK’s prized AAA credit rating on negative outlook, meaning that there could be a potential downgrade. All of this is likely to ensure that fiscal policy in the UK remains tight.

Whether this is the case, shall be revealed in the Chancellor’s budget statement on Wednesday. The budget will be the key event of the week with currency investors looking for signs about whether the Bank of England will need to provide further stimulus to the economy by introducing more quantitative easing. It is likely that the Chancellor will keep fiscal policy tight to ensure that Britain does not lose its prized top-grade rating. If it seems that this is the case and that interest rates will be kept on hold for much longer, there is a chance that Sterling could weaken.

Other key events that may affect exchange rates this week include UK house prices on Monday, UK inflation and retail data on Tuesday and the Bank of England minutes on Wednesday morning. With all this coming before the budget, it could be a volatile week ahead. To discuss how any of this may affect any upcoming currency transfers and the value of your property purchase or sale in relation to the foreign exchange, please just get in touch.

For further advice on how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

Having soared to over a three month high on the US Dollar as I reported last week, the Pound has now taken a hit falling by just over 1 percent on the currency. It also slipped against the Euro falling by 0.42 percent over the last week.

The UK economy had largely itself to blame. Data on the UK Services sector came in lower than expected at the start of the week, which taken alongside an unexpected fall in house prices as well as a disappointing report on retail sales growth, painted a more gloomy outlook of UK economic health than the previous week. Should more weak data follow this week, we could see Sterling slide again if indications point more seriously to a return to recession. This negative data slightly over-shadowed the hold on Interest Rates and Quantitative Easing announced by the Bank of England on Thursday which would ordinarily be seen as a positive sign that there is no significant threat of a return to recession.

The Pound was also not helped last week against the US Dollar by the fact that there was much stronger data in the area of US employment where employment has grown solidly for the third month in a row. The picture for the US Dollar going forward is likely to revolve around these key economic releases but also whether the Federal Reserve will change its stance on keeping interest rates low into 2014. Should they announce that Interest rates will rise sooner, there could be some serious pick up in the US Dollar.

Both the Pound and the Dollar are also still invariably susceptible to developments in the Euro-zone. The wait for news throughout most of last week about whether Greece would seal a debt swap also kept the ‘safe’ US Dollar strong as investors shunned ‘riskier’ currencies such as the Pound. Looking ahead, if any other nations such as Portugal also have to re-structure their debt, this trend could continue.

In the short term, key economic events that may affect exchange rates this week start on Tuesday with more UK house price data as well as trade balance data from the UK. If the house prices confirm last week’s suggestion that there has been a drop, the week could start badly for Sterling. Tuesday also sees the US Interest Rate decision. Unemployment data from the UK on Wednesday may also be used as a key milestone by investors to interpret what direction the UK economy is really heading in. To discuss how any of this may affect any upcoming currency transfers and the value of your property purchase or sale in relation to the foreign exchange, please just get in touch.

For further advice on how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

If you need a Sterling to Dollar transfer over the coming months, you may want to think about booking the exchange rate in advance soon as we are currently at the best rates seen for three and a half months.

We start this week with the Pound at a mid-market rate of 1.158 on the US Dollar following a second week of gains. The Pound has found strength over the past seven days to also reclaim some of its recent losses on the Euro, gaining by 1.6 percent to a rate of 1.999. Data released from the UK over the past week helped to paint a brighter picture of the UK economy. There was stronger retail sales data in the first half of the week and then the PMI Manufacturing and Construction readings both came in above 50 at the end of the week. A reading of more than 50 crucially helps to indicate that the UK economy is growing rather than returning to recession so this really helped to boost the Pound.

The PMI Services data for the UK is due on Monday. Should this also be higher than 50, we may well see Sterling nudge up again. If it is lower than 50, this may throw Sterling’s current position into jeopardy ahead of the Bank of England Interest Rate and Quantitative Easing decision on Thursday this week. Although it is unlikely that interest rates will change, there has been a lot of speculation over whether the Bank of England will introduce more Quantitative Easing which is likely to weaken Sterling. The strong Manufacturing and Construction data last week helped to reduce the likelihood that there will be more Quantitative Easing announced on Thursday. The final piece of Services data on Monday therefore, alongside the Bank of England decision on Thursday will be key pieces of data that may affect exchange rates next week. Feel free to give me a call or email me if you would like to discuss whether to book an exchange rate or be kept updated with how currency movements affect you throughout this week.

Sterling is of course also being affected by the ongoing situation in Europe. The Euro fell against many other currencies last week as the European Central Bank injected more cash into the banking system. It also suffered from investor anxiety that Greece won’t be able to meet the requirements of making harsh austerity cuts. It is also the European Central Bank interest rate decision on Thursday, as well as GDP figures on Tuesday so there is plenty next week to affect the Euro’s movement.

If you are looking at investing in property in Australia or New Zealand, there are interest rate decisions coming on Tuesday and Wednesday respectively, so make sure that you stay updated with how this affects exchange rates.

For further advice on how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

As I suggested may be the case in my last blog, the progression of the Greek bailout deal alongside the release of the Bank of England minutes were the key events to bring about currency movements last week. And they were no small currency movements…with Sterling falling by a huge 2.05 percent on the Euro and dropping to a similar ten week low on a basket of other currencies. Those of you interested in Sterling’s performance against the US Dollar will be relieved to hear however, that the Pound in fact grew by 0.28 percent overall on the US currency.

Starting with Sterling-Euro, we start this week with a much less appealing exchange rate of 1.180. This was largely due to the fact that euro zone finance ministers at last finalised a long awaited second Greek bailout deal. This deal helped the Euro to strengthen over the course of the week, as the fact that the threat of a Greek default next month has now been removed, ensured that risk-appetite increased and investors moved funds over to the Euro. The Pound’s demise against the single currency was also aggravated by the release of the Bank of England policy meeting minutes on Wednesday. These revealed that there had been support for a larger amount of quantitative easing at the last meeting than was decided upon, signalling that there may be more quantitative easing to come in the UK. This may continue to put downwards pressure on Sterling until the next monetary policy decision in March brings about more clarity.

It is a relief therefore, for any of you making US property investments that Sterling did not similarly suffer against the US Dollar. As the US Dollar is such a safe-haven currency, the global risk appetite that the Greek bail-out deal bought about helped Sterling track the Euro’s gains on the US Dollar.

UK GDP data released at the very end of the week did help lift Sterling slightly on all major currencies, by suggesting overall that the UK economy was holding up.

Going forward however, Sterling faces many obstacles in the current climate. Ongoing tough austerity measures in the UK, strong links with the Euro zone, and the likelihood of more Quantitative Easing, are likely to keep the UK close to recession and prevent Sterling from making significant moves upwards. This week in particular brings some key events to look out for which will determine currency movements. Tuesday sees three releases in the area of Consumer, Industrial and Economic confidence for the European Monetary Union as well as Consumer confidence in the US. Wednesday also brings a melting pot of important data with the European inflation figure, UK mortgage approval data and US GDP figures. The European Union economic summit on Thursday and Friday may well also bring about some comments that influence the strength of currencies. If you would like to speak to me about how to achieve the best exchange rate for your property transfer or protect yourself from currency fluctuations this week, please don’t hesitate to get in touch. If you have Euros to convert to Sterling – don’t forget that now is the best rate we have seen in ten weeks.

For further advice on how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

Sterling found strength over the past week, experiencing a rally from Wednesday onwards, improving its position on the Euro and the US Dollar. This is good news for anyone hoping for a strong Pound for their overseas property investments with Sterling moving up to start this week at a rate of 1.204 on the Euro and 1.582 on the US Dollar.

The Pound’s rally was largely due to better than forecast news being highlighted in the big release of last week – the UK quarterly inflation report. This included an upwards revision to the Bank of England's two-year inflation forecast meaning that there is a reduced chance of the Bank of England having to resort to more quantitative easing. As quantitative easing means releasing more Pounds into the UK economy, this is off-putting for currency investors and typically results in a weakening of the currency.

As well as there being less chance of quantitative easing, last week also brought good news for the UK in the form of an unexpected rise in January retail sales, as well as a rise in British consumer confidence to its highest level since August. This reveals that the public’s view of the economy is improving and helps to support the Bank of England’s view that higher consumption will help encourage the economy to grow throughout 2012 with the predicted fall in inflation improving household budgets across the UK.

It’s not all plain sailing for Sterling however. The currency initially suffered downwards pressure in the first half of last week as rating agency Moody’s put the UK’s triple-A credit rating on negative outlook. This move was made because Moody’s consider UK growth prospects to be minimal and that the risk of Euro-zone problems affecting the UK’s trade and own economy is quite high. Were the UK ever to experience such a credit downgrade, it’s likely that Sterling would suffer. If you need to transfer Sterling into another currency therefore, bear in mind that the recent rally is still set against the backdrop of much uncertainty. It’s possible to book an exchange rate in advance of your transfer with just a ten percent deposit of the total amount to allow you to fix the exchange rate – this kind of forward transfer is proving very popular with clients as it affords them some certainty on the exchange rate that they will receive in these volatile times.

The situation in Europe continues to rumble on. Finalised details of the agreement of a second Greek bail out deal are taking a long time to emerge – the wait has been plaguing the currency markets and putting downwards pressure on the single currency. It is thought that a deal may be announced on Monday so watch out for any currency movement that this may bring.

Also next week are UK public sector net borrowing figures on Tuesday, the Bank of England minutes on Wednesday, unemployment figures on Thursday as well as GDP data on Friday – a fair raft of data to create some currency movement but the dominant factor is likely to remain Greece’s bailout and if a deal is announced.

For further advice on how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

The Pound has stumbled slightly since my blog last week, falling by 0.37 percent on the US Dollar and 0.67 percent on the Euro. This was following a week of mixed fortunes however and it was only towards the end of the week that Sterling lost its rally…

Some important key data looked bright for Sterling last week with industrial production figures coming in better than expected and a reduction in the size of the overall UK trade deficit. Both of these data sets helped to add more evidence that the UK may avoid recession.

This was off-set however with poor retail figures and then the Bank of England’s announcement on Thursday to introduce more monetary easing to help shore up the economy. Although this move to introduce more quantitative easing was widely expected by markets, it shifted the focus of currency investors back to weaknesses in the UK economy and on to the Bank of England’s quarterly inflation report due on Wednesday this week. Many are expecting that the inflation report will not make for pleasant reading and may push Sterling down even lower. We start this week at a rate of 1.575 against the US Dollar and 1.194 on the Euro.

The fortunes of Sterling have been, as ever, inherently tied up with the situation in Europe. The European Central Bank decided to hold interest rates at 1 percent as expected.The main event dominating European markets throughout the week however, was the long wait for Greece to reach a political agreement on its debt. The Euro was held down somewhat by the ongoing wait for a closure on the deal in the first half of last week, but as the Greek Prime Minister announced an agreement had been reached on Thursday there seemed to be more hope – until it was revealed on Friday that the agreement came with certain conditions from Eurozone finance ministers and it was not clear if Greece had agreed to these.

This uncertainty around the Greek deal on Friday led to a flight to safety with currency investors moving funds over to the US Dollar to the detriment of the Pound. The week ended therefore with Sterling taking a nose dive.

If you have a currency exchange coming up, there are an array of economic data events coming up over this week that are likely to add even more movement to the volatile currency markets. The most key event to look out for will be UK inflation data on Tuesday and quarterly inflation report on Wednesday. The Bank of England have suggested that they are confident that inflation is going back down, so should Tuesday’s figures suggest otherwise, there could be some downwards pressure on the Pound. The inflation report on Wednesday will help to give insight into the Bank of England’s outlook and plans for monetary policy and will no doubt show its influence on exchange rates.

For further advice on how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

Those looking to purchase property in Europe will be disappointed to hear that the Pound has fallen back below the 1.20 level on the Euro to a mid-market exchange rate of 1.190. This occurred as news spread last week that that progress was being made in Greek debt-swap talks and a deal is soon to be struck to help prevent a Greek default, boosting confidence in the single currency. Sterling’s fall of 1.23 percent on the Euro throughout the week was also fuelled by the fact that the UK was revealed as being on the brink of recession when GDP figures revealed that the UK economy contracted by 0.2 percent in the last quarter of 2011 rather than showing any signs of growth.

Against the US Dollar on the other hand, Sterling hit a five week high, achieving a mid-market exchange rate of 1.573 percent. Good news for anyone looking to invest in American property. Again, this movement was largely due to events in the Euro-zone, as an increased flow of funds into the Euro, generally comes from a withdrawing of funds from the US Dollar. The US economy did also suffer its own bad news on Wednesday as the US Federal Reserve announced that it would keep interest rates low until 2014 and introduce more monetary stimulus measures. US GDP figures revealed that the economy grew by 2.8 percent in the last quarter of 2011 – which was lower than the forecasted 3 percent.

What is the long term currency picture going forward? It is likely that events in the Eurozone will continue to dominate the currency markets. Although the Euro was pushed up last week due to news of the Greek deal, its position is very precarious due to uncertainty in other Euro nations. There was news last week that the Spanish unemployment rate hit 22.58% in the fourth quarter of 2011. Portugal also remains a concern, with speculation that the nation may need a second bail-out. If you need a Sterling to Euro transfer though, it really is a case of monitoring the ongoing situation week by week to book your transfer at the best time. It’s possible to discuss a target rate of exchange with me so that I can monitor the markets on your behalf and alert you when we reach your target rate. You can alternatively fix an exchange rate in advance to protect yourself from currency volatility and reduce risks by affording yourself the certainty of knowing the cost of your foreign investment to you in Sterling as the exchange rate is pre-booked.

Movement in the Pound in the short term is likely to also revolve around whether the Bank of England will increase quantitative easing measures to shore up the UK economy. The Bank of England minutes from the last policy meeting released last week revealed that policy members are showing increasing support for such a move which may come in February. If this looks increasingly likely, the Pound may well experience some downwards pressure.

One key way that we will be able to tell whether more quantitative easing is likely is by the PMI figures released from Wednesday onwards this week in the UK. They will reveal how well the UK Construction, Services and Manufacturing sectors are doing and help indicate whether there really is a real risk of the UK returning to recession. Should the PMI figures reveal poor growth, it is much more likely that the Bank of England will look to introduce quantitative easing soon, and therefore likely that the Pound may suffer. UK mortgage data on Tuesday will also be revealing.

For further advice on how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

Sterling has now held at above the key 1.20 level against the Euro for three weeks which is good news for those of you needing a Sterling to Euro transfer. Sterling is only just hanging on by the skin of its teeth however, as we start this week with the currency at the 1.203 level on the Euro having fallen by 0.31 percent overall throughout the week.

This is due to the Euro’s minor rally in the second half of the week. After Euro-zone nations were plagued with credit rating downgrades in the first half of the week, there was a change in fortune for the Euro as news became more positive; the European Central Bank took moves to inject more cash in funds designed to prevent the spread of debt and hopes rose that Greece will avoid a default. This kind of news meant that ‘risk-appetite’ increased allowing the Euro to experience some small upwards movement.

This same ‘risk-appetite’ allowed Sterling to experience much more than a small upwards climb on the US Dollar, rising by 1.68 percent over the course of the week to a rate of 1.556. Despite the news that positive economic data came out of the US, such as falling unemployment, the Dollar fared badly because it’s position as a ‘safe haven’ currency was not as important to investors throughout last week as it has been with the Euro and Sterling becoming more attractive choices. This means that the Pound is now at a two week high on the US currency, so anyone needing a Sterling to Dollar transfer soon, should consider the news that we have currently moved up to a better position and there is no telling how long this will last.

The Pound remains precarious as there are still concerns over the fragile UK economy which is itself vulnerable to problems in Europe. It is still thought likely that more monetary stimulus in the form of Quantitative Easing, will be introduced by the Bank of England, as early as February. This is expected to cause Sterling to weaken when it happens and last week’s news that UK inflation fell in December down to 4.2 percent has only strengthened speculation that such a move will come soon. Two events this week will help determine whether more Quantitative Easing is likely – namely UK GDP data and the Bank of England minutes from the last policy meeting which are released on Wednesday. GDP figures are expected to show that the economy shrank in the last quarter of 2011. If the minutes also help to suggest that discussion took place at the last meeting to suggest that Quantitative Easing is on its way soon, the Pound may experience some downwards pressure from Wednesday onwards. As ever, please feel free to give me a call to discuss how currency movements may affect your transfers or for advice on how to fix an exchange rate in advance to protect yourself from the current volatility.

For further advice on how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

At last! Sterling has pushed up through the key area of resistance of 1.20 on the Euro to a sixteen month high. I reported in my last two blogs that Sterling was heading towards 1.20 so it’s great news for all of you needing a Sterling to Euro transfer that we’ve gone through this key level. We start the week with Sterling at a midmarket rate of 1.214 on the Euro so if you do have any transfers to make now is a good time to think about whether you want to book them – or fix the current rate for a future transfer.

As ever, Sterling’s position on the Euro comes with a word of warning. Many commentators are still reporting that the current exchange rate is due to the economic woes in Europe rather than any perceived strength in the UK. This is of course also indicated by the fact that again, Sterling has dropped against the US Dollar. This week the drop was by 0.73 percent meaning that the Pound is down to a mid-market rate of 1.541 on the US currency.

The fact that data on ‘non-farm payrolls’, a key indicator of the employment situation in US, improved this week helped the US Dollar. US ‘jobless’ levels were also down to a three and half year low giving fresh hope that the US economy will perform better in 2012. There was some marginally better data from the UK, such as a pick up in the services sector, but this was over-shadowed by falling house prices and poor manufacturing data. If the UK does return to recession, which many are expecting, we would expect there to be downwards pressure on the Pound so it is likely to be a volatile year ahead. The only thing at present that can be predicted as possibly enabling Sterling to pick up against the US Dollar is monetary policy – if the US is seen as being slow to act whereas the Bank of England show strong decisive action, there may be some hope for a turn around in fortune.

What’s on the cards for this week? The Euro may well deteriorate further with Italian and Spanish debt auctions due to take place.  There are more UK house prices due however, which if they follow suit with last week will do the Pound no favours. The UK trade balance on Wednesday, and US and European trade balances on Friday will allow markets to easily compare the health of these three economies so could bring some movement. Most of all, it’s important to watch out for the UK and European interest rate decisions on Thursday. Although no changes to policy are expected in the UK (more quantitative easing has been ear-marked for next month) any surprises or changes from Europe could have a big impact. Feel free to give me a call for a free quote on any kind of bank to bank currency transfer or to discuss how to protect yourself from currency volatility.

For further advice on how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

Happy New Year to everyone. 2012 is no doubt going to be an interesting year for currency markets with the global economic situation and ongoing crisis in Europe set to bring more seismic shifts in exchange rates.

In my last blog before Christmas, I reported that Sterling was edging towards 1.20 on the Euro. With light trading over the Christmas and New Year holidays, we start this week with the Pound at a similar level on the Euro – currently at around the midmarket rate of 1.999. As the Euro crisis continues and European leaders continue to try to work together to find a solution, we are likely to see continued downwards pressure on the Euro. As it has been widely reported in the news, its performance has been particularly poor on the Japanese Yen (the ultimate safe haven currency) with the single currency falling by a huge 4.66 percent on the Yen in the last month.

Whilst Sterling has held against the Euro, it has continued to drop off against the US Dollar, dropping off by 0.31 percent over the past week to around a two and a half month low. The US Dollar continues to be favoured even more than the Pound as an alternative for the Euro with a stream of funds going into US Dollars.

The good news for those of you hoping for a strong Pound to start this year is that the Bank of England minutes that came out before Christmas, did at least not knock the Pound as some had feared. There were concerns that any discussion within the minutes of plans for more quantitative easing in the UK could put downwards pressure on Sterling. In the event, the Bank of England minutes did discuss quantitative easing. Although no policy members had voted for more quantitative easing, the minutes revealed growing support for such a move possibly in February. This seemed to be largely shrugged off by markets however with no blips showing in the Pound’s strength. This could of course alter as such a move draws nearer meaning the Pound could stumble lower in the coming months once more quantitative easing is announced. On a more positive note, UK public sector net borrowing figures have come in slightly better than expected meaning that the UK budget situation shows signs of improvement.

The first week of the year starts with UK PMI manufacturing, construction and services data from Tuesday to Thursday which is treated as a key indicator of UK financial health and therefore taken seriously by currency markets. There is also UK mortgage data on Wednesday as well as plenty of European data to end the week on Friday including consumer confidence, economic confidence, retail sales figures and unemployment figures. All of this may bring about movements affecting exchange rates so feel free to give me a call about how this may affect any upcoming transfers or if you would like any currency advice for property investments in to 2012.

For further advice on how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

Sterling is in a very similar position to that which I described in my last blog – still holding within sight of a ten month high on the Euro but continuing to drop off against the US Dollar. We start the Christmas week with Sterling at the mid-market levels of 1.191 on the Euro and 1.554 on the US Dollar.

Currency movements are still being completely dominated by the situation in Europe. This means unfortunately that Sterling’s rise on the Euro is not being attributed to perceived strength in the UK economy (although UK retail sales data this week was positive) but rather that investors are seeking alternatives to the risky Euro. This explains why Sterling has managed to gain an impressive 1.77 percent on the Euro over the course of the past week whilst dropping by 0.8 percent on the Dollar which is perceived as much ‘safer’ than Sterling. This is also reflected in the Euro’s drop against the Dollar which is much larger than that against Sterling – a huge 2.57 percent over the course of the past week.

If you are going to need a Sterling to Euro transfer therefore, the message is still very much that there is no certainty about how long this position of strength may last. The Sterling to Euro 1.20 rate is also a key area of resistance that may be difficult for Sterling to break through. On the other hand, with nearly all the credit rating agencies downgrading European banks, and reviewing the ratings of nations such as France, it may be that if the European situation continues to deteriorate, the Pound could gain even more. This will also largely be dependent on whether robust new agreements are formed between political leaders about the Euro zone bailout fund and financial mechanisms to help restore the health of the Euro zone. At present, the main result of the hype in the press about the UK veto-ing changes to the treaty, and lack of unity between nations, is likely to be continued downwards pressure on the Euro.

The Pound hit a two month low against the US Dollar on Wednesday and it will again be news in the Euro-zone that continues to be the main driver of this currency pairing. There will however be a bit more of a spotlight on the UK this week with house prices coming out on Monday and the big event – the Bank of England minutes from the last policy meeting revealed on Wednesday. If this reveals that there is growing support among policy makers to introduce more quantitative easing in the Uk, it could be that Sterling loses some momentum on the Euro. European economic confidence figures and UK GDP figures on Thursday could also bring some movement.

For further advice on how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

With so much uncertainty surrounding the state of the eurozone at present, there are some who are predicting that its very existence may soon come under threat.  Just a few months ago the thought of an all-out euro collapse was considered far-fetched, but now we find ourselves considering the ‘what if’’ scenario.

The events of yesterday's summit in Brussels seem like a last desperate push to bring the eurozone countries closer together. Europe's leaders failed to agree a change to the EU treaties. Instead the new rules will be adopted by 17 members of the eurozone and 6 states that are willing to embrace the new rules. These new rules are aimed to impose stricter control of member countries' tax and spending plans and to impose automatic sanctions on countries that overspend. This tighter integration is hoped to strengthen member commitment to the eurozone cause, however the euro-sceptics suggest that this will just cause further tussles and fights. With the debt issue still unresolved, it is difficult to see the positives of last night's event.

The question many of us are now asking is “what will happen if the euro capitulates?” Nobody can say for certain, but if you are looking to move your assets out of the euro, procrastination is something you should perhaps avoid. As currency specialists we are currently catering for thousands of clients who have had precisely the same concerns.

Speak to us today to find out how we can help you reduce your euro exposure risk.

Just register for a call back and a free Currency Report guide here or call 0207 740 0000 quoting 'property secrets' today!

A very unhealthy picture of the UK economy was painted this week. As I reported may be the case in last week’s blog, the Bank of England Inflation Report published on Wednesday left a damaging impression of the UK economy with it highlighting that more quantitative easing is likely to be introduced and growth forecasts were also reduced. Taken alongside dire news on unemployment which has reached a fifteen year high, and news that consumer confidence hit record lows in October, the one small piece of good news from the UK – an increase in retail sales – seemed very insignificant.

The effect of all of this on the Pound showed itself much more acutely against the US Dollar and other safe-haven currencies than the single currency. Against the US Dollar, Sterling fell by an enormous 1.62 percent over the course of the week, meaning that we start this week at around a rate of 1.578 on the US currency. This is clearly mirroring Sterling’s fall against the Japanese Yen, another of the world’s largest ‘safe-haven’ currencies which it fell against by 1.91 percent, revealing how damaging last week’s UK economic data was.

Fortunately for those interested in Sterling’s performance against the Euro, the Pound has managed to almost hold its position overall that it reached following the previous two weeks of consecutive climbs. In last week’s blog, I reported that the Pound had reached levels of 1.169 on the Euro and we start this week at a rate of 1.168 so the overall movement is almost flat at 0%. Sterling is therefore managing to hold on to a strong position against the Euro, despite plummeting against other major currencies. This is because the dramatic events unfolding in Europe are causing currency investors to exit the Euro and hold them in Sterling using the Pound as a form of safe-haven instead.

Berlusconi’s resignation and the approval of austerity measures in Italy, gave some very short lived confidence back to the Euro on Monday. This soon dissipated however, and the situation remains very precarious. This will not necessarily continue to play out in Sterling’s favour however, as many economists are starting to point out the increased risks that this may being to the UK due to the UK’s close trading and financial links with Europe. If the European debt crisis continues to spiral, the impact on the UK economic recovery may become more and more real – at present, many economists are describing the Sterling – Euro situation as indicating that Sterling is being given ‘the benefit of the doubt’ by currency investors. If you have a Sterling to Euro transfer to make in the upcoming months therefore, it may be worth considering using a forward contract to secure the kinds of exchange rates we are seeing now as there are no guarantees about how long these will last. Feel free to give me a call to discuss.

There is some significant UK data to watch out for this week, which could have an effect on exchange rates, alongside continuing developments in the Eurozone. House price figures on Monday and an update on the amount of public sector net borrowing on Tuesday will kick off the week. One of the most significant events however, will be the release of the Bank of England minutes on Wednesday. These will reveal whether any more members in the Bank of England have voted in favour of more quantitative easing to help shore up the economy – if this is the case, Sterling could potentially lose some momentum.

For further advice on how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

Anyone who has seen a TV or newspaper over the past week will have seen that the financial position of Italy and build-up to Berlusconi’s resignation became something of a news sensation. It won’t surprise you to hear therefore that Sterling saw its chance and took it – rising for a second week on the Euro to some of the best levels seen in eight months. Sterling starts the week at around a level of 1.169 on the single currency. It also rose against the US Dollar by 0.21 percent over all, meaning that it has now just about tipped over the mid-market rate of 1.60.

All very good news if you want to buy property in either the US or Europe and need to convert Sterling into Dollars or Euros. Sterling also benefited from the Bank of England monthly monetary policy announcements on Thursday. Interest rates were held at 0.5 percent which was widely expected – but the good news for the Pound was on Quantitative Easing with no increase to asset purchases (meaning that no more Pounds will be plunged into the economy this time round to help shore it up - which can knock the value of Sterling against other currencies).

Will this last however? The position against the Dollar is fairly precarious. There was some good economic data from the US this week that showed consumer sentiment rose to its highest level in five months. There is rising speculation that the US are also going to resort to expanding Quantitative Easing and lots of focus on when this third round of ‘QE’ will happen. Should this happen before more QE is announced in the UK, there could be a golden window of opportunity for Sterling to rise on the US currency, but the reverse could be true if a QE expansion hits the UK first.

One potentially damaging event for Sterling to look out for next week is the Bank of England quarterly inflation report on Wednesday. It is expected that the inflation report will make something of a case for more QE which could scare currency investors, cause funds to drain away from Sterling and therefore cause it to weaken.

Against the Euro, a lot will become more clear after Monday, when we can see how currency markets have reacted to developments in Italy including Berlusconi’s resignation, the new budget law and reform austerity measures that have been approved. The situation became very serious last week with Italy’s level of debt having a severe knock on impact with Ireland, Portugal and Greece having to call for bail-outs. The spiralling situation last week edged very close to a Euro-zone wide melt down. Although the Eurozone is far from clear of danger yet, the fact that new reform measures have been approved in Italy paving the way for a new unity Government to tackle the crisis, could re-assure some investors and cause the Euro to lift off its recent lows this week.

Bear in mind therefore, that if confidence starts to pick up in the Euro and the UK inflation report suggests more quantitative easing, the Pound could become more vulnerable following two weeks of climbs. I’m more than happy to speak to any of you about the target rate of exchange you are looking to achieve or if you have any concerns about the Euro crisis and want to discuss your property investments or regular currency mortgage payments.

For further advice on how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

Last week was a chaotic one, with Greece’s debt problems hitting the news more than ever and speculation rising that the Eurozone is going to have to significantly adapt to survive in the long term – with some believing that it’s possible that certain nations may end up leaving the Eurozone.

You won’t be surprised to hear that all the commotion allowed Sterling to grow on the Euro by a whopping 1.98 percent over the course of the week. This is of course, good news for anyone thinking of purchasing property in Europe. We start the week, with Sterling up to a rate of 1.162 on the Euro, which by recent standards is a very good mid-market rate. Don’t forget that you can lock into a preferable exchange rate in advance of your transfer by calling me to discuss a forward contract. Last week’s movement was not only due to a lack of clarity emerging about plans for the Euro-zone bailout fund following the G20 meeting, but also due to the European Central Bank reducing interest rates on Thursday. Interest rates were taken down from 1.5 percent to 1.25 percent and some commentators believe that a repeat move could be taken next month.

This is good news to the ears of those hoping that the Pound will continue to grow on the Euro; although interest rates in the UK are still comparatively low (at 0.5 percent) monetary policy in the UK is starting to look relatively more stable than in Europe which could help make the Pound more attractive and cause it to strengthen. The fact that European interest rates have been rising is something that has kept Sterling on the back foot for a long time.

As ever however, it is not all plain sailing for the Pound. Whilst Sterling accelerated on the Euro last week, it diminished against the Dollar by 0.6 percent meaning we start this week at around the 1.603 level. This is partly because it tracked the beleaguered Euro against the Dollar but also because there are still question marks over the UK economy and whether it is heading back into recession. Weak data from the UK manufacturing and services sectors this week did not help to dampen this concern.

As markets continue to await for better confirmation about what is happening with Greece’s bailout deal, its tricky to know which way exchange rates will turn over the coming week so this will be a key issue to watch out for. There is also some hefty UK data due - on Tuesday in the areas of manufacturing and industrial production and on Wednesday, the latest figure about the UK trade deficit will be another key indicator of how likely it is that the UK is heading back to recession. The Bank of England’s monthly policy decision is then due on Thursday – were there to be any kind of increase again to the amount of Quantitative Easing being used to shore up the economy, Sterling could be vulnerable. If there is no change, perhaps Sterling can push up again on the Euro at least for a second consecutive week.

For further advice on how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

As anticipated, Sterling’s movement throughout the past week has mainly revolved around what decisions were announced following the European Summits.

European leaders have agreed to strengthen the European rescue fund and have also unveiled a new plan for Greece. The result of this on the global currency markets, has been to restore confidence in the Euro, allowing it to make steep gains on other major currencies. Against Sterling, the Euro grew by 0.72 percent over the course of the week. This means that Sterling starts the week at a rate of 1.139 against the Euro. It is thought that currency investors had been using Sterling as a temporary safe-haven until clarity emerged about decisions made over the European rescue fund so we are now seeing a reversal.

This is not to say that the single currency will necessarily continue to strengthen on the Pound in the long term as the economic situation in Europe is still fragile. The Euro did actually move down from its highest point on Friday when Italy issued expensive ten year debt which caused the surge of optimism to dampen a little. It will be interesting to see over the coming week, how Thursday’s monetary policy decisions in both the UK and Europe affect the rate of exchange as both respective currencies have a potential threat to their strength.

For the Euro, the threat is that a reduction in European interest rates is expected to occur at some point this year which is likely see Euro weakening. Although most economists are not expecting an interest rate reduction to come until at least December, if comments made on Thursday suggest that this is on the cards, the Euro could see some downwards pressure. The threat to Sterling is that the introduction of more Quantitative Easing (filling the struggling economy with more funds to help it rebuild strength) could be supported yet again by the Bank of England policy members. If this occurs, it is likely to add downwards pressure to the Pound. How these two factors will affect the Euro-Sterling tug of war will emerge on Thursday morning.

Sterling’s movement against the Dollar over the past week makes for much more pleasant reading, with the Pound accelerating by 1.12 percent. This means that Sterling starts the week at around a seven week high of 1.612 against the Dollar and has logged one of its best monthly performances against the Dollar since April. This is despite fears for the ongoing weakness in the UK economy, and consumer confidence coming in at its lowest levels since 2009 due to anxieties over a return to recession.

Stay updated with Sterling’s performance particularly on Thursday this week when the monthly monetary policy decisions are announced by the Bank of England and European Central Bank. Feel free to give me a call if you would like me to watch the rates for you or to get a quote on your transfer.

For further advice on how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

This week’s currency round-up may come as a pleasant surprise to those UK based property investors interested in Sterling’s performance. Despite the latest UK inflation figures hitting the headlines last week for all the wrong reasons (now soaring as high as 5.2 percent – far and beyond above the Bank of England’s 2 percent target), Sterling managed to shake off most of the week’s bad news to climb 0.73 percent on the Euro and 0.83 percent on the US Dollar.

It wasn’t just the news of higher inflation that was a bad indicator for the UK economy. The Bank of England also strongly hinted that their recent tactic of introducing more funds into the UK economy by the means of quantitative easing might be reinforced by another round soon – should this happen, then we would expect the Pound to lose more momentum long term.

In spite of these specific UK developments, bigger global developments allowed the Pound to gain over the past seven days as volatility took hold in the run up to the weekend’s European summits. In particular, speculation and confusion over whether France and Germany had come to a new arrangement about the European Financial Stability Fund made markets cautious as they awaited an official line. It has now been revealed that an announcement about a new comprehensive plan for how to deal with European debt will come this Wednesday following European summits at the weekend – this may reinstate some confidence in the Euro so we may see Sterling drop off against the European currency if this is the case.

Sterling is starting the week at a rate of 1.148 against the Euro and 1.595 against the US Dollar. Apart from the big announcement coming from Europe on Wednesday, news affecting the value of Sterling may be UK mortgage data due on Tuesday and UK consumer confidence on Thursday. Those interested in Sterling’s performance against the Dollar should stay up to date with US GDP figures on Thursday that could also have some affect. Interest rate decisions are due next week from Canada on Tuesday, New Zealand on Wednesday and Japan on Thursday – so if you are requiring an exchange to the currencies of any of these nations it’s a good idea to see how whether these announcements cause any movement. Feel free to give me a call if you would like me to keep you updated.

For further advice on how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

To start with the good news first for those purchasing property in the US, Sterling has re-cooperated against the Dollar since my last blog a week ago. Last week, I reported how the Bank of England’s announcement about reintroducing more quantitative easing to the economy had de-railed Sterling against the US currency. The past seven days have seen something of a reversal however, with the Pound gaining by a huge 1.68 percent on the US currency. This means that we start the week at a rate of 1.581 against the Dollar – this is the highest rate seen for a month and the rate of growth achieved by the Pound on the Dollar is the best seen since January.

Will this good fortune against the US currency last? Unfortunately, Sterling has grown on the Dollar in spite of the economic data coming from the UK over the past week rather than because of it. (Unemployment for example, was revealed to be at the highest levels since 1992 in the UK last week which is a very poor indicator for the way the economy is going). There was a shift in the global currency markets mid-week; this was due to the necessary approval by Slovakia for the European Financial Stability Facility. This development re-ignited the currency markets’ confidence in the Euro and saw a turn-around as risk-appetite once again soared...

This brings me on to the bad news which is for those Property Secrets clients interested in Sterling’s performance against the Euro. Although the increase in risk appetite saw funds drain away from the US Dollar and allow Sterling to make gains, it also caused the Euro to soar. For this reason Sterling simultaneously fell against the Euro by an enormous 2.05 percent over the week. This means that we start this week at a level of 1.140 against the single currency.

Most economists are still not seeing much hope for Sterling in the long term despite its climb on the US Dollar this week. The decision by the Bank of England to introduce more Quantitative Easing is expected to continue to eat away at the currency. The Pound for example, has already lost four percent against the Australian Dollar since the announcement. Sterling was lucky this week, reaping the rewards of increased risk appetite against a handful of currencies, but against the Euro is likely to continue to suffer. As European officials announce further levels of agreements about how to tackle the Euro zone crisis, investors are expected to take the chance to choose the single currency over the Pound. If you have any concerns about how a weakening Pound may affect your property investment, then feel free to give me a call to discuss the trading options available to you.

For further advice on how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

Sterling starts this week at a rate of 1.555 against the US Dollar and 1.163 against the Euro. These rates are a down-turn on the previous week, but don’t reflect the very lowest points of last week - in particular a fourteen month low on the Dollar at 1.527. The drop in Sterling happened as the Bank of England announced that more monetary stimulus, in the form of a second round of quantitative easing, has been launched in an attempt to re-ignite the stalling UK economy. Although this course of action was predicted, most economists believed that this would not happen until November meaning that the decision taken this month came surprisingly early as well as being larger in scale than expected with the asset purchasing programme now expanding to 275 billion pounds. The move has been taken in reaction to the UK’s slowing growth, spending cuts and lower wage rises.

As quantitative easing involves flooding the market with Pounds, the general expectation is that this will make the Pound even less attractive to investors going forward, and cause even higher inflation as well as longer term weakness in the UK currency. There are however a few reports beginning to emerge which suggest that the move may be interpreted more positively for its ‘decisive’ direction and help re-install confidence in the Bank of England and its attitude in dealing with the risk of returning to recession head on. The next week may start to indicate, depending on which way Sterling moves, how markets are thinking.

The European monetary policy decision which also took place on Thursday helped support the single currency as the European Central Bank held interest rates at 1.5 percent whilst there were a number of predictions for an interest rate reduction. The ongoing movement of the Euro is as uncertain as ever however, as the saga over whether Greece will default on its debts and how this may affect other nations remains rumbling on in the background and as ratings agency Fitch downgraded both Italy and Spain at the end of last week.

Unfortunately for those UK investors wanting to purchase property in the US, the Dollar rose on Sterling as aside from the news about quantitative easing in the UK, there was some stronger data coming from the US. This included better than predicted data on US joblessness, initial unemployment and nonfarm payrolls.

Key events to watch next week that may move the markets are UK manufacturing and industrial figures on Tuesday as well as unemployment figures on Wednesday. The UK trade balance on Thursday will also reveal whether the UK has managed to cut down its large trade deficit and increase exports.  There are also some housing figures due mid-week which come with a health warning for those hoping the Pound will strengthen, as they are expected to paint a bleak picture of the UK property market.

For further advice on how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

Following my report on Sterling’s dire position seven days ago, the past week has seen some improvements in the position of the Pound – these should be treated as very precarious however, with the upwards movement against the Euro in particular being something of a red herring.

This is because Sterling’s 1.64 percent rally against the Euro over the past week came predominantly on Friday. It was widely reported that a single large order to exchange Billions worth of Euros into Sterling (relating to the UK’s annual rebate from the European Union agricultural subsidies) took place causing the sudden upwards jump. The bigger picture is that the Euro is likely to find more support over the coming week as Euro zone nations approve an increase in the region’s bail-out funds.

On top of this, this week sees monetary policy decisions coming from both the UK and Europe on Thursday. Whilst interest rates are more than likely to be maintained by both Central Banks, the speculation that the Bank of England will introduce more economic stimulus in the form of Quantitative Easing either this month or next month is likely to put downwards pressure on the Pound in advance of Thursday’s announcement. Most economists are predicting that the move is more likely to come in November, but nervousness is likely to set in before the Bank of England’s announcement later this week, with investors shunning the Pound for other currencies.

The Pound had an up and down week against the US Dollar, climbing overall by 0.84 percent. This means that we start the week at a rate of 1.558. Overall however, Sterling is still heading for its worst monthly performance against the Dollar in a year so this remains a good time to move Dollars back into Sterling or fix the rate for doing so.

For any UK based investors interested in property in New Zealand it’s not all bad news on the Sterling front – the New Zealand Dollar fell last week as after the nation’s sovereign rating was downgraded by credit ratings agency Fitch, due to the large amount of external debt that the nation has.

Key events next week include the European and UK monetary policy decisions on Thursday as well as more meetings regarding the debt and default issues in the Eurozone, including the Ecofin meeting, which could help push the Euro higher if more consensus is announced for supportive measures.

Next week will also reveal more about the state of the economy in the UK with a stream of economic releases which may well have an impact on the Pound – in  particular PMI data Monday to Wednesday in the areas of manufacturing, construction and services typically influence the Pound, especially when coming in lower or higher than forecast.

For further advice on how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

Last week was volatile for the currency markets with a host of data coming out as well as various headlines emerging about the possibility of a double dip recession in the UK as well as a deepening crisis in Europe.

The result was that currency investors flocked to the safe haven currencies of the US Dollar and the Yen instead of the higher yielding Sterling and Euro. This meant that despite an up and down week, Sterling practically held against the Euro from the week before overall, moving only by a minimal 0.08 percent. Against the Dollar however, the Pound suffered a terrible drop, falling by a huge 2.13 percent, meaning that we start this week at around a rate of 1.54.

Sterling particularly crashed against the US Dollar from Wednesday onwards as far as a one year low. Other than the news emerging from the global economy, the Bank of England minutes released on Wednesday helped drag down the Pound, as they seemed to confirm speculation that it won’t be long at all before policy members vote for quantitative easing to be used in the UK as the flagging economy becomes ever more precarious. Although the minutes revealed that only one policy member voted for this form of monetary stimulus this month, the notes confirmed that many members thought that this would be a likely remedy needed to help the economy from as soon as next month. As such action would fill the economy with more Pounds, such news makes Sterling unattractive for currency investors, which is adding yet more downwards pressure on the UK currency.

This is alongside more negative data from the UK such as a drop in factory orders and a rise in public borrowing.

Those property investors interested in how Sterling may perform against the Euro, which unlike the Dollar is not a safe haven, should take note of the G20 finance meeting that took place last week. This meeting of the world’s largest economies concluded that there was a mutual commitment to ‘take all actions to preserve the stability of the banking system’ – as the conference had focussed on Europe and the Greek debt crisis this can namely be interpreted as a pledge to contribute funds to ensure the banking system remains stable. This may help support the Euro.

With monetary stimulus now on the agenda in the UK therefore there isn’t likely to be much good news for the Pound in the immediate future, particularly with all the current talk of the risk over a return to a recession. Feel free to talk to me about how you can protect yourself from further currency fluctuations using techniques such as forward contracts and market orders.

If you happen to have property to sell in the US and need to bring Dollar’s back to Sterling we are currently looking at some of the best exchange rates seen in a year.

For further advice on how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

Last week was not a happy seven days for the Pound which fell overall by 0.58 percent against the US Dollar and a significant 1.59 percent against the Euro.

There was a particularly gloomy moment for Sterling last week when it touched the lowest levels so far in 2011 against the Dollar. A number of factors have been at play in Sterling’s demise, not least, a lot of talk about quantitative easing – a method of helping to reignite the economy that the Bank of England are thought to be drawing ever closer to. This was intimated by both Bank of England policy maker Martin Weale and referred to by Business Secretary Vince Cable last week.

Sterling was also not helped by the fact that currency investors took flight to the safe haven of the US Dollar in the early part of last week as rumblings over European debt sales and credit ratings caused currency investors to be nervous. The speculation over a possible Greek debt default did also cause the Euro to drop to a six month low on Sterling, but the single European currency then picked up over the rest of the week. This was due to certain progressions helping to calm nerves such as the news that China would buy up Italian bonds.

Most of the data coming from the UK last week did not help to spread much hope that Sterling might pick up. Although retail sales were not quite as poor as expected, the news of rising unemployment, lower wages and rising inflation expectations have not painted a particularly optimistic picture of the UK economy. This is all making the chance of monetary stimulus in the form of quantitative easing even more likely, with most wondering not if but when it will happen. This is likely to make Sterling less attractive to investors going forward and there are likely to be regular jitters when the Bank of England announce their monetary policy decision each month.

UK based property investors should therefore be cautious as the Pound doesn’t currently have much on the horizon in terms of a life line. Although the enormity of problems in the Eurozone could see the Sterling Euro rate improve, it’s equally as important to remember that the UK is also vulnerable to these problems with Europe being a main trading partner as well as there being strong financial links with UK and European banks. Don’t forget that it’s possible to book yourself into a rate of exchange prior to your money transfer to protect yourself from the uncertainty of fluctuations.

Key data and events to look out for this week include the Bank of England minutes on Wednesday which will reveal the voting and discussions that took place at this month’s monetary policy meeting – this could bring quantitative easing event more into the spotlight if discussions about this feature on the minutes. There are also UK house prices and consumer confidence figures on Monday as well as UK public net borrowing on Wednesday.

For further advice on how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

Last week I reported Sterling’s recent movements - gaining on the Euro whilst dropping against the US Dollar. This movement has extended throughout the past week as the markets saw even more intensity – against the Dollar for example, Sterling tumbled by an astonishing 2.05 percent.

Sterling managed to keep climbing against the Euro to levels of 1.163, the strongest rates seen in over three months. This ascent gathered momentum from Thursday onwards when interest rate decisions were announced by both the Bank of England and the European Central Bank. Whilst both decisions were in line with expectations in terms of holding interest rates, Sterling found support from the fact that some economists had expected new quantitative easing measures to be announced by the Bank of England to help shore up the economy - this did not materialise as the economy was evidently believed to be robust enough for now which helped support the Pound.

Trichet’s comments following the interest rate decision in Europe on the same day did also not help the single currency as he identified ‘intensified downside risks’ to the economy with some predicting that European interest rates may have to be brought back down at some stage. The resignation of European Central Bank Executive Board Member Juergen Stark, reportedly over policy, also generated uncertainty and provoked more Sterling weakness.

Anyone interested in the Swiss Franc, will be astonished at some of the movement throughout last week. The currency plunged by 10 percent against the Euro as Swiss officials announced plans to intervene in order to artificially bring down the value of the currency and introduce regulations about how much it can grow against the Euro. This made the Swiss France unattractive to investors.

Sterling steadily fell against the US Dollar throughout the week to levels of 1.588. Confidence grew for the US economy as President Obama announced plans about a programme to stimulate jobs with an injection of 300 billion Dollars. There was also positive news concerning the US trade deficit which fell by 13.1 percent in July which was much better than expected.

The mixed picture of Sterling’s current movement, with the Pound growing against some currencies, whilst falling against others, reveals that the Pound itself has little internal strength at present. If you have Pounds to transfer therefore you should consider the current rates as very precarious. The strengthening position against the Euro is really under-pinned by weakness and problems in Europe. Although no quantitative easing was announced in this month’s UK monetary policy decisions, there is still a strong possibility that this could happen at some stage – and when it does we would expect Sterling to lose ground as the market is flooded with Pounds. It’s best as ever, to have target rates of exchange in mind, and make yourself protected against currency fluctuations. The second half of this week sees a wealth of data being released – from more UK retail data to CPI inflation data in the US. It may be another volatile week.

For further advice on how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

The Pound has fared very differently against other major currencies over the past week so how this will affect any upcoming property investments will depend on the currency you need. Sterling lost 0.93 percent of its value against the Dollar but managed to gain by a very significant 1.06 percent on the Euro. This means that the Pound starts the week at the 1.62 levels on the Dollar and at the 1.14 levels against the Euro.

In truth, last week saw a fair amount of poor economic data coming out of the UK, Europe and the US so currency investors had to choose from a bad bunch – Sterling hit a three week low on the Dollar on Thursday after it emerged that manufacturing activity in the US was just slightly healthier than that in the UK. In the UK manufacturing shrank at its fastest pace for over two years with a steep drop in demand for exports. With more manufacturing figures due on Wednesday this week, it’s wise to see if these are once again negative and have an impact on Sterling.

The ongoing sovereign debt problems in Europe however are perceived as much more serious than any stagnant figures coming from the UK which therefore allowed the Pound to grow on the Euro throughout the week. Unemployment in the Euro-zone has now reached levels of 10 percent. Standard and Poor’s rating agency has also lowered their growth forecasts for Europe. It’s hopeful therefore that Sterling may continue to grow on the Euro throughout next week – this may well be dependent on figures at the start of the week that make the two economies easily comparable as PMI data on Services as well as Retail Sales figures are released from both the UK and Europe. This is before both the Bank of England as well as the European Central Bank announce their respective interest rate decisions on Thursday. This may well draw more attention to the fact that UK interest rates are expected to remain static well into 2012 or 2013 which is not good news for Sterling. However, European interest rates are similarly not expected to rise in the foreseeable future and in fact some speculation has started to circulate that they may in time need to be brought back down as the European economy struggles to cope.

There is some hope for Sterling re-strengthening against the Dollar this week as markets closed on Friday to a very negative report on US employment. We may therefore see some Dollar weakening at the start of this week. Both the US and UK trade balance figures are also due to be released at the end of the week which may help investors also interpret the health of each economy.

For further advice on how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

It’s a despondent start to the new week for any UK based property investors as the Pound has lost out steadily to other major currencies over the past week. Sterling kicks off the week at the 1.12 mid-market level against the Euro and 1.63 against the US Dollar, having lost ground by 1.31 percent and 0.58 percent against the currencies respectively.

This was a sharp fall from the previous week when Sterling had reached some recent highs, in particular the best rates for three and a half months against the Dollar touching a rate of 1.66. Some analysts are suggesting that Sterling was actually over-priced throughout the previous week, as it reacted to bad economic events in Europe and the US, and was ready for a fall bearing in mind the ongoing lacklustre picture being painted of the UK economy. This was emphasised last week as it was revealed that British retail sales fell at their fastest pace in almost a year, consumer confidence edged down further in July and GDP figures for the second quarter were not revised upwards but remained at a measly 0.2 percent. Added to this was the fact that some speculation has started to circulate in the press, that additional quantitative easing may be required to help kick start the UK economy, with interest rates now not expected to rise until 2013.

The Pound therefore found itself under renewed pressure in a week where currency investors were all awaiting a large economic news event which lent more strength to the Dollar as the week progressed – this was the widely anticipated annual speech made by Federal Reserve Chairman Ben Bernanke on Friday. The crux of the anticipation for investors was whether Bernanke would announce another round of quantitative easing for the US to bolster growth (last year he announced the second round of quantitative easing). It was thought that any hint of a third round of easing would help sooth increasing fears about the US economy heading back into recession. In the event, Bernanke did not announce this but did concede that the Federal Reserve would meet for an extra day in September to discuss whether any additional ‘tools’ needed using to help stimulate the economy. It is possible therefore, that the Dollar strength seen throughout the last week may start to subside.

Key events to watch out for this week will be the run of PMI data in the UK which starts on Thursday, with the latest growth figures from the manufacturing and construction industries coming out before the end of the week. US unemployment and non-farm payroll data also at the end of the week could see some re-adjustment in the Dollar. As the European debt crisis rumbles on, following the purchase of more debt by the ECB last week, there will as ever be an element of uncertainty to how markets will react to the ongoing situation. Give me a call or register an online enquiry if you’d like me to watch the rates for you.

For further advice on how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

Sterling has continued its month of ascent on other major currencies, with the past week seeing a 1.13 percent climb on the Dollar, as well as a small but none the less upwards move, on the Euro, by 0.11 percent. Significant change is afoot in the currency markets following some of the major events of the past two weeks – those interested in how Sterling will fare against the Dollar should be particularly alert to what is happening in the exchange rates as the Dollar becomes increasingly unpopular making it cheap for those in the UK to invest in American property.

The significant climb on the Dollar means that we start this week at the midmarket rate of around the 1.64 mark. The historic decision by Standard and Poor’s two weeks ago to downgrade the US credit rating is continuing to send shudders through the currency markets – whether the US currency will continue to be used as a ‘safe-haven’ currency by investors (one of the major factors that determines its strength) remains to be seen. The Dollar became even more vulnerable when early last week, the Federal Reserve announced that US interest rates would be maintained at the minimal 0 – 0.25 percent level well into 2013. This is another factor which is likely to ensure a weak Dollar going forward.

Ongoing volatility in Europe affecting the stock markets, as well as reports of slower economic growth in Europe last week, allowed Sterling to gain on the single currency. German GDP for the second quarter came in lower than expected just when Europe could have done with some better news from their strongest economy.

The negative news coming from both the US and Europe has steered the Swiss Franc, another of the world’s most popular ‘safe-haven’ currencies, in to a relentless upwards climb as investors become wary of the Dollar – this is despite efforts taken last week by the Swiss National Bank to artificially intervene and weaken the currency. This is not good news for anyone wanting to invest in Switzerland, although if you have Swiss assets to sell on the other hand, now is a brilliant time in terms of exchange rates.

Sterling was therefore in demand last week – and this was despite some poor economic UK news, which managed to seem paltry in comparison to European and US events. The Bank of England minutes revealed that that the two ‘rate hawks’ of the monetary policy committee have joined the other seven members in voting to keep interest rates the same. This, as well as disappointing jobs data, did not affect Sterling’s ability to hit three month highs. Friday will be a significant end to the upcoming week with both US and UK GDP figures for the second quarter of 2011 being confirmed (and any revisions being announced). However, as the last week has taught, the volatility in the global financial markets, may continue to be the dominant factor and hopefully Sterling will maintain its current position. Speak to me with any queries on how to secure the current exchange rates for your transfer.

For further advice on how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

Sterling continues to struggle. I’m pretty sure you may have read that more often than not recently, but it remains the case. The cause continues to be stagnant growth, downgraded forecasts and the risk of further stimulus measures hanging in the air. The effect is a stronger euro and dollar than we might have expected, given recent negative events with both currencies. With all the uncertainty surrounding the eurozone and the political posturing of the US, the upshot is that the pairings remain largely where they have sat for much of last month.

Pound Sterling – UK Markets

Sterling fell against the dollar yesterday, closing at 1.6183. We appear to have recovered some ground in early trading however, to sit currently at 1.6271 at time of writing*. The pound tracked euro losses against the greenback yesterday, with the dollar running out the winner following jobless figures in the afternoon.

As ever, sterling is continually hampered by a distinct lack of positive forecasts and mostly weak data. It simply doesn’t appear to have the legs to drive upwards when negativity elsewhere suggests that it should. Whilst the euro struggles, we see the GBP/EUR pairing largely static and appearing range bound between lows of 1.13 and highs of 1.15. The pairing currently trades at 1.1434*, with no real movement since yesterday’s close.

US Dollar – US Markets

Wall Street rallied on Thursday, following an unexpected decline in US jobless claims and better-than-forecast corporate earnings. This caused the dollar to recover some ground, mostly against the pound.

It’s good news for the greenback considering the recent humiliation of being downgraded by Standard and Poor’s following the political jostling to raise the debt ceiling. We may also have expected some vulnerability in reaction to the decision to keep interest rates on hold at near zero per cent until 2013.

So far, however, the dollar has rallied if anything. How much of this is a direct benefit of the euro’s travails remains to be seen, but for now the currency holds its ground.

Euro – European Markets

There is no question that concerns over the debt situation in the zone are likely to escalate. It is very much a ‘take-each-day-as-it-comes’ scenario with the euro – it could crumble at any time. It does appear, however, that the real problems it faces are being masked somewhat by the struggle elsewhere. Were we not in global strife, we may well be seeing a euro falling through the floor but, of course, without the global crisis it probably wouldn’t be in this mess. There, possibly, lies the crux of the matter; we expect the euro to weaken due to its problems, but forget why it is in apparent dire straits in the first place.

Against the dollar, rates are little changed. Current trading sees the pairing at 1.4252* with variation at a minimum. It is Friday, however, and we often see some excitement as we head toward the weekend close. The squaring off of weekly positions can result in some interesting movement in the afternoon, so do check with your broker if you are looking to trade a combination of EUR/USD/GBP.

As mentioned, the euro is very bound in range against the pound. From lows of 1.13 to highs of 1.15, we have seen no breakout from these parameters in recent trading and I expect little change from that position going forward.

Other Currencies – Highlights

The commodities-backed currencies remain a good buy at present. The AUD has lost around 7% in value in a week’s trading, the ZAR about the same percentage. Whilst the NZD remains strong, that too has lost significant value in recent trading. Should you be looking to buy into these currencies and your timeframe is limited, now would appear to be a very good time.

Events in Europe and the US have continued to shape currency markets over the last week. Unfortunately, the Pound has not had quite such a heroic seven days on the Euro as I was able to report last week, when we cheered the 1.24 percent gain against the single currency. The last week has not seen such an extent of movement, but overall the Pound has toppled to lose 0.39 percent of the previous week’s gains as events took a turn in Europe and the terms of Greek debt were agreed on by European officials. With Greece having longer to now pay off its debts under new conditions, the immediate threat of default has been side-lined. Markets responded well to the plan with the Euro instantly starting to pick back up. Extra confidence in Europe was gained from the fact that it wasn’t just the terms of Greek debt that were agreed, but a reform to the EFSF as a whole, meaning it should be more flexible and effective in responding to and helping to prevent debt problems in European nations. Those needing Sterling to Euro transfers should bear in mind that although the past week has put heed to Sterling’s two week rally, over the past month as a whole, the Pound has grown by 1 percent on the Euro so we are far from the worst rates we have seen.

Those interested in how exchange rates will affect any upcoming property purchases in the US will be pleased to hear that the Pound did have a much better week against the Dollar to the tune of a 1.02 percent gain on the US currency. The ongoing wrangling between opposition leaders about whether to raise the ‘debt ceiling’ in the US (which needs to happen before the 2nd August to let the cash-strapped nation borrow more funds to add to its empty pot) has continued to dominate markets and allow Sterling to gain on the Dollar. It is worth noting that it was rumoured over the weekend that an agreement may be very soon approaching, so those wondering whether to fix into the current Sterling Dollar exchange rate may want to keep an eye on how this develops as there is a chance that once an agreement is reached, the Dollar could see some form of rally. Data from the US will also have a hand in this however, and the last week shows how patchy the economy is with poor US employment data hitting at the end of the week.

From the UK last week, the Bank of England minutes, actually had little impact on the Pound. They revealed that once more, support for a rate hike from within the committee was only by the same two members as has become the custom each month. Positive retail sales and the fact that net borrowing has reduced added a little more shine to the current view of the UK economy, however an interest rate rise, in truth, is still likely to be a long way off.

What is the picture for next week? Should the US reach an agreement on the debt ceiling, we could see some shifts take place so please speak with me if you would like me to keep you updated with whether your target rate of exchange is achieved – or rates move away from you meaning you want to minimise impact before they drop further. GDP figures on Tuesday from the UK will also be significant. Any sign of strong growth could push the Pound in the right direction but a low figure could sap Sterling.

For further advice or how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

Good news for UK based property investors purchasing overseas! The Pound has struck back over the past week, making the most of the damaging data and events that have unfolded in the US and the Euro-zone.

Sterling has finally edged back up to more acceptable levels against the Euro, starting the fresh week at the 1.14s – this could quickly accelerate depending on how much markets react when they re-open on Monday morning to the European stress test results that came out at 5pm on Friday evening. The Euro dropped all day on Friday as markets awaited the results to find out how many European banks had failed the stringent tests. Markets were expecting about fifteen banks to fail – the final result was that eight banks failed including five Spanish, two Greek and one Austrian bank. Therefore, the results were not quite as bad as expected so it will be interesting to see whether this will continue to pull down the Euro this week. The news in truth is not good for Europe when added to last week’s string of credit rating downgrades on various Eurozone nations – both Greece and Ireland suffered downgrades by credit rating agencies. With Italy only half-way through the process of passing its austerity measures, there is still a great degree of uncertainty about sovereign debt which is starting to reflect in the downwards movement of the Euro. Following weeks of Euro gains, Sterling has now had two strong weeks against the single currency – growing by 1.24 percent on the single currency last week, following a 1 percent increase the week before. The Euro also dropped to a severe low against the Swiss Franc to its lowest ever level. Anyone purchasing property in Europe should keep a keen eye on how the situation progresses this week as these are the best Sterling levels we have seen against the Euro in over a month.

The credit rating agencies also had their hand to play in allowing the Pound to appreciate on the Dollar last week by 0.5 percent. Both Standard and Poor’s and Moody’s agencies warned that they may downgrade the US AAA credit rating. This comes as the US is struggling to resolve its issues with its debt ceiling limit – the US needs the debt ceiling raised before the 2nd August to be legally allowed to borrow more money but President Obama and Congress are failing to reach an agreement on how this can be achieved. If measures are not agreed on by politicians before the 2nd August, the US would then be defaulting on its debt, which could bring some more serious damage to the Dollar.

Sterling therefore, stayed out of the limelight for most of last week with minimal economic data coming out of the UK– instead it quietly made gains in the shadow of events in Europe and the US. CPI inflation data on Tuesday was a little less than forecast but still well over the 2 percent target at 4.2 percent. The biggest internal UK event for Sterling this week will be the Bank of England minutes on Wednesday. Unfortunately, if they confirm expectations that an interest rate hike is not looking likely until 2012, or give any indication of more monetary stimulus being required, then the Pound could be more vulnerable from Wednesday onwards. This will of course also depend on how these big issues in the US and Europe continue to progress so feel free to give me a call and stay updated.

For further advice or how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

It has been another volatile week for the Pound. Anyone purchasing a property investment in the US will be pleased to know that Sterling grew by 0.73 percent on the Dollar last week. For those purchasing in Europe however, the story from last week has got even worse – the Pound dropped by 1.66 percent on the Euro throughout the week meaning that we start this  week at the 1.10 levels - some of the worst rates seen in fifteen months for those making Sterling to Euro transfers.

What is managing to make the Euro overpower Sterling in this way? Sovereign debt in Greece was the main issue affecting currency markets last week. Despite the widespread protests as reported in the news, for currency markets, the fact that Greek politicians passed another round of austerity measures, has shored up confidence that the crisis is being dealt with and saw an instant lift in the single currency. As this also helped to increase the ‘risk-appetite’ of currency investors generally, it also helps to explain whilst as the Euro rose, the safe-haven Dollar lost ground as well as other lower-yielding ‘safer’ currencies such as the Swiss Franc.

Sat in the middle of this cross-fire, the Pound therefore demised further against the Euro, whilst managing to gain ground on the Dollar. The US did also experience some negative data which contributed to this, with US consumer confidence figures dropping on Friday.

The ongoing interest rate saga running alongside the Greek situation was also to blame for Sterling’s fall against the Euro. Trichet made comments last week that have led markets to believe that there is a very strong chance that Europe will raise interest rates on Thursday this week from 1.25 to 1.5 percent which is now the official prediction. This is especially significant as the UK interest rate decision takes place on the same day, but rates are almost guaranteed to stay stagnant at the very low 0.5 percent. Whereas a few months ago, it was thought a UK rate rise would take place this summer, the UK is now seen as lagging even further behind in the interest rate race, with a rate hike very unlikely to come until 2012. Very poor UK PMI manufacturing data last week (the worst in 21 months) has only confirmed the view that an interest rate rise will take a long time to occur due to fragile areas in the UK economy.

This does not bode well for Sterling’s movements against the Euro this week so please do give me a call if you do have money to exchange in to Euros any time in the upcoming months as we can discuss your upper and lower target rates of exchange. Since January, Sterling has now dropped by nearly 10 percent on the Euro, which on the price of a property is incredibly significant. This makes it more important than ever to use a currency broker like myself, to achieve a better rate than the banks as well as making sure you are well equipped to book the transfer rate at the best time, given the wide scale currency movements that we are currently seeing. Speaking to me before the interest rate decisions take place this Thursday is advisable.

For further advice or how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

Rife speculation around Greek debt throughout last week did not manage to damage the Euro against Sterling. On the contrary, dire figures from the manufacturing sector in the UK last week (the worst in twenty months) building on the weak confirmed GDP figures of the week before, showed their impact on the Pound which lost out a very significant 2.73 percent to the Euro over the course of the week.  You won’t need me to tell you what a huge amount of money 2.73 percent is on a property purchase or sale. If you do happen to be selling an overseas home and bringing Euros back into Sterling then now really is the time to make the transfer – even if the exchange will not happen for several months, I can forward book the exchange for you at the current rate with just a ten percent deposit of the total. If however, you need to make a Sterling to Euro transfer you will be wanting to know if there is much news on the horizon that may help bring the Pound back up on the single currency.  The big event of the week will be the clash of the European and UK interest rate decisions on Thursday. Should we see the Bank of England make a hike up from 0.5 percent or the European Central Bank raise interest rates from 1.25 percent, we could well see the respective currency gain ground. Before this, we have the producer price index and investor confidence out in Europe on Monday, retail sales on Tuesday and GDP figures on Wednesday. With UK industrial and manufacturing data on Friday this could well be a volatile week for this currency pairing with significant data out every day. Please give me a call to discuss any transfers involving Euro and Sterling as I’m happy to keep an eye out for your target rate of exchange or help protect you from fluctuations throughout this week.

Against the Dollar, we are starting the week with the Pound sitting at the 1.64s. Although the currency has not managed to retain the levels of 1.65 seen two weeks ago against the Dollar, it is important to remember that it suddenly surged to these levels from 1.61 so despite losing out 0.51 percent to the US currency over the past week, we are still in a relatively strong position for the month as a whole. Although data from the UK, particularly in the area of manufacturing, has pulled the Pound down, the tail end of last week also bought some very bad data from the US economy so there is the potential for some volatility. In particular, the non-farm payroll figures which give a view into US employment patterns were much below forecasts with unemployment also creeping up. Moody’s ratings agency have also commented that they may put the US triple A credit rating on review for downgrade unless more is done to tackle debt by mid July – this could be a real blow for the Dollar should the downgrade occur and confidence be lost. The best way to catch the spike in your favour (such as the 1.65 levels seen recently) is to speak with me at Currency Solutions so I can watch the rate for you - and even set an automatic market-order on your behalf. It is important to remember however that we are still at fairly strong levels at the current rate of 1.64 so it may be worth you calling to get a quote on your exchange with me if you need a Sterling to Dollar transfer and haven’t done already – particularly if you are risk-averse and more keen to make sure you don’t miss out on the going good rate.

For further advice or how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

After a rather wet and windy bank holiday weekend it appears we may now be in the eye of the storm. With little news rearing its head out of the US and UK we may well be focusing purely on what is likely to happen next in Greece. Chances are all talks of restructuring have been thrown out the window so we are now awaiting the EU’s final move.

Pound Sterling

Don’t be surprised to see sterling tail away today and perhaps into tomorrow. This is mainly due to the lack of economic data that has surfaced due to yesterday’s bank holiday.

The only morsel of economic news worth mentioning from the bank holiday weekend is that growth forecasts have been cut by the British Chambers of Commerce. Whilst we expected growth of around 2.3 percent, this prediction for 2012 has been cut to 2.2 percent. Such revised forecasts will be seen as dovish by investors and thus the markets are likely to suffer.

Dollar

Similar to the UK, yesterday was a Memorial Day bank holiday in the US which meant there was little economic data being released. However, a report released today has stated that home prices fell by the most in 16 months during March. This coupled with an increase in home renters in the market have caused the dollar to fall.

With housing making up approximately 40 percent of the consumer price index and a rise in interest rates unlikely, an increase in the number of renters along with soaring gas prices could see inflation soar throughout the rest of the year.

Euro

The euro gathered momentum this morning, helped by talks of a second bailout for Athens and general US Dollar and sterling weakness. There has been serious debate over the last couple of weeks as to whether or not Greece will require total debt restructuring. However, reports suggest that European leaders are simply going to ‘throw money at the problem’.

Furthermore, Germany has once again stepped up to the plate. This morning saw the power nation report retail figures came in 3.7 percent above expectation. This has seen the single currency gain quite substantially against the majority of its counterparts.

Other Currencies – Highlights

The New Zealand Dollar climbed to record highs against its major counterparts on speculation the Central Bank will increase interest rates. This coupled with speculation of a Greek bailout package will increase demand for higher yielding assets that include both the kiwi and Aussie Dollar’s.

However, whilst the New Zealand Dollar is performing very well, the Australian Dollar has had its reins pulled back as reports showed their economy probably shrank last quarter by the most in two decades. This was more than likely due to floods that swamped coal mines and farmland.

For further advice or how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

Poor manufacturing, construction and house price data made the Pound vulnerable at the start of last week against the Euro. Property investors purchasing in Europe however will be pleased to hear that after dipping as low as 1.11 on Thursday, the Pound has more than compensated against the single currency after Europe held interest rates at 1.25 percent and Trichet suggested that it will be some time before European rates rise again. As some had conversely believed that interest rates in Europe would rise either this month or next month, Sterling managed to shoot up to the 1.14s against the Euro by the end of the week on the back of the news. This extreme level of movement on Thursday and Friday just goes to show how important it is to speak with me at Currency Solutions so I am able to alert you to these kind of sudden moves in the markets.

It is hard to yet say whether the Euro will continue to weaken. The scale of currency movements last week however were very significant and did suggest that the tide could be turning – alongside the interest rate hold was the Portuguese bail out plans in the headlines. The Euro also dropped by 3.3 percent against the Dollar over the course of the week. The US Dollar became the main benefactor of the sudden Euro weakness, with Sterling losing out by 2 percent to the Dollar over the week as a whole. This is not good news for those UK based property investors needing to send funds to the US so it is important to keep an eye on the rates. Unfortunately, the Dollar did manage to solidify its position at the end of last week with much better than expected non-farm payroll data – this is often considered the most insightful type of employment data in the US and could be treated as a key indicator that the US economy is picking up. Should the Dollar continue to strengthen there is always the option of using one of our protective trading options such as a forward contract to fix your rate of exchange in advance and be certain of the cost of your investment to you in Sterling.

For this week, Wednesday will be an important day for Sterling with both the trade balance and the quarterly inflation report due. The inflation report in particular is interpreted by markets in order to make more detailed guesses about when an interest rate hike will be made – should the report suggest that inflation is set to accelerate therefore, we could see some Sterling strengthening. Equally however, if it looks like inflation is creeping back down, markets may continue to choose the Dollar over the Pound. European GDP figures on Friday might help ascertain whether the Euro will continue to be rocked should they come in lower.

For further advice or how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.

This week sees the emergency budget fall upon us in the UK on Tuesday 22nd June. How will this affect the Pound? The emergency budget has been lurking on the horizon for some time now but as the crucial date has drawn nearer the new Government have began preparing the nation by drip feeding indications of what is to come. The Coalition began by accusing the previous Government of leaving finances in a much worse state than feared. Next, the newly created Office for Budget Responsibility last week slashed previous predictions on UK growth forecasts by half a point meaning the new Chancellor has an extra £12 billion to source, with £2.4 billion needing to be raised next year. Yesterday, the Chancellor spoke again ahead of the budget warning that UK citizens from all walks of life will have their part to play in tackling the crisis. This all adds up to paint a bleak picture of the tax rises and spending cuts that are about to be implemented.

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For the Pound therefore, there is likely to be some movement in reaction to the budget. Although long-term investors react well to decisive leadership and strong measures being taken to reduce deficits, historically budgets have tended to weaken the Pound in the short term. In this particular case, the budget will be revealing the UK’s debt woes - warts and all - thereby drawing attention to the problems that the budget is designed to help remedy. As market volatility is expected, if you have any transfers to make involving Sterling, it is advisable to speak with us today prior to the budget.

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Also set to affect a range of currencies this week is an expected overhaul of China’s currency policy which came to light last night. This has caused the US Dollar to fall to a four week low against the Euro, as well as the Yuan to advance the most in twenty months against the US Dollar. China has kept the Yuan pegged to the US Dollar since the onset of the economic crisis in July 2008. This has been much debated and unpopular with other nations as it works to protect Chinese exporters and makes its harder for other nations to compete with the cheap Chinese export market and reduce their trade deficits. Apart from the mentioned movements in the Yuan and the US Dollar, commodity currencies such as the New Zealand and Australian Dollars have strengthened in response to the announcement.

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In European matters, the Euro has been having a volatility time. Greece’s credit rating was downgraded last week to Ba1, a non-investment grade by Moody’s Investors. This is due to their perception of ‘substantial’ risks to the nation’s economic growth. For the Euro-zone however, this was balanced out when the Euro received a boost with more positive news later in the week as Spain manage to sell 3.5 billion Euros worth of bonds raising confidence that nations can raise finances to tackle their debt. With the Pound and Dollar likely to be experiencing movement, the Euro is also looking to have an equally volatile time.

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To discuss how to get the best rates or protect yourself from volatility speak to Nigel Hodges on 0207 740 0000 or fill out your enquiry by clicking HERE.

MPC member David Blanchflower reiterated the impending possibilities of QE extension, saying that the Bank of England could pull out as much as GBP250 billion from the current GBP175 billion.

Despite the gloom, the pound surprised everyone rallying against all major currencies bar the yen. Sterling maintained a five-day winning streak against the euro and kept cable at 1.64 against the US dollar on Thursday. Friday saw the charge continue, as UK currency hit a six-week high against the euro at GBP/EUR1.115, helped along by the highest UK mortgage data the UK has seen in 18 months. UK residential investment also jumped 23% midweek, contributing to GDP for the first time since 2005.

A successful week for sterling suggested that the worst could be behind the UK economy, however some forecasts suggest GBP could again have a tough week. All will be revealed after the BoE meeting on Thursday, with a decision on QE expected to be announced around midday.

The real drivers for both UK consumer spending and residential investment were actually the hefty government stimulus packages from across the pond, totaling some USD1.7 trillion, the Cash for Clunkers initiative certainly played its part. In the US last week, figures showed that business inventories declined at a slower pace this quarter falling by USD131 billion compared to 160 billion in the last quarter. In another report, weekly jobless claims fell by a modest 1,000 last week to 530,000, which, although heartening, didn’t promise much for the Non Farm Payrolls data due this week.

Markets were illuminated by all the encouraging US data and equity and commodity prices responded well as risk aversion abated. Yet none of this was of any benefit to the dollar which was, as a result, sold widely.

Monday had seen US currency drop to a 14-month low against the euro, following a Chinese report which said Beijing should increase its holdings of euros and yen in its foreign reserves. The following day saw the dollar hit its highest in a month against Japanese currency, touching 92.33 yen and by Wednesday weak US data and volatilities in the equity market paved the way for a flight to the greenback which kept getting stronger. This all came about due to fears that an economic recovery would take longer than previously expected, pulling investors away from the higher yielding currencies and boosting the dollar in the markets. The greenback’s climb gently eased towards the end of the week as investors waited on announcements of more US data. 

The euro began the week trading past USD1.50 for the first time in 14 months after a Chinese report prompted investors to sell the dollar for the single currency. However, later on Monday the European currency experienced its steepest fall since early August, dropping nearly 1%. Meanwhile, the dollar index posted its best daily gain since September as investors unwound short dollar positions after a sudden fall in stocks and commodities. Thursday brought more misery on the single currency as it entered a fourth straight day of losses against sterling to trade at EUR/GBP 0.89.
 

There were various movements in other parts of the world on Friday as the yen strengthened following the year's biggest first-day launch for a single series of Japanese mutual bonds. Both the Australian and New Zealand dollar fell against the yen and were also weaker against the US dollar trading at AUD0.914 and NZD0.729 respectively.

On the same day Canada’s dollar emerged from a three-week low against its US counterpart, strengthening 1.3% to CAD1.067. This week all eyes will be on the Bank of England meeting, which will surely see a wave of activity depending on what is decided with regard to QE.

Nigel Hodges (Currency Solutions).