As those of you who have to transfer money over to Europe probably know, the Euro has been having something of a rally over the past month – and nothing seems to be able to stop in its tracks. This is bad news for those of you exchanging Sterling into Euros with the rates at around the worst levels that they have been in five months.

Why the Euro is so strong on first impressions can be difficult to understand. After all, the news is full of reports on the Portuguese bail-out, and the crisis with the Irish banks. Although these debt issues in individual nations may eventually come to a head and pull the euro down, for now, all currency investors have really been concentrating on is the issue of interest rates. Last Thursday saw Europe raise interest rates to 1.25 percent, whilst rates in the UK were held once more at 0.5 percent. This has confirmed the speculation that whereas Europe are tackling inflation head on and trying to provoke growth, the Bank of England are much more cautious about the speed of the recovery in the UK and when an interest rate rise could be withstood.

For those of you exchanging money into Dollars, the picture is much brighter, The US is still seen as lagging much further behind both the UK and Europe with an interest rate hike not seriously on the agenda as of yet and therefore Sterling is in a good position against the Dollar.

What will have an impact on movements this week? Tuesday will be a big day for Sterling with the latest inflation figure coming out. Should this have grown even higher than the 4.4percent figure released last time we could see some Sterling strengthening as this will add pressure to the Bank of England to raise interest rates. There is also potentially damaging data in the mix tomorrow such as retail sales figures (which last month were dire) and the trade balance for the UK so there could be volatility.

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) 20 7740 0000 or by clicking HERE to leave an enquiry.

Another week and another swing in the rates.

Most significantly, the US Dollar fell against a basket of other currencies to its lowest levels since 2009 making this the best time to convert Pounds into Dollars this year. The was the result of the long awaited decision by the US Federal Reserve to try and re-stimulate the US economy by introducing more ‘quantitative easing’ measures – namely pumping another 600 billion Dollars into the economy. Anyone who needs a GBP / US Dollar transfer even if it is some way in the future would be well advised to speak with a currency broker about how they could lock into this great rate now. There have been a few signs that the US Dollar could begin to claim back some of its losses following stronger than expected data on unemployment on Friday so it is a good time to make a decision on how to handle your transfer. The US trade balance will be revealed on Wednesday and may have an impact.

The Euro has been steadily strengthening and dodging the spotlight recently with all the fuss over quantitative easing and the US claiming centre stage but this week has kicked off with something of a shift and the Euro beginning to weaken. Greek and Irish debt problems are firmly back on the agenda with a visit to Ireland today from the EU Economic and Monetary Affairs Commissioner to look over their budget plans. With no significant US data until Wednesday, the Euro may bare the brunt of currency movements in the early part of the week. There are some positive data releases to look out for, such as Germany’s widening trade surplus this morning, however this is serving to highlight the contrast between Germany and the other failing European economies.

Sterling has continued to strengthen against both the Euro and the US Dollar over the past week. Stronger than expected producer price data on Friday surprised analysts and showed the fastest rate of growth in the past six months. Also this is a positive reflection of the UK economic recovery it also presents a problem in terms of how well the Bank of England, the nation’s economic policy makers, are judged as they have been downplaying speculation over rising inflation. The inflation report will be joined on Wednesday by the Bank of England Governor’s speech Tuesday morning sees a clutter of UK data releases on industrial production, manufacturing production and the total trades and good balance so a disappointing or positive result could have an impact (both construction and services data last week instantly caused a movement in Sterling).

The end of the week will see nations attending the G 20 meeting on Thursday and Friday. Friday will also be an important day for the Euro with both European and German GDP figures for the third quarter due.

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) 20 7740 0000 or by clicking HERE to leave an enquiry.