A recent release by Hometrack showed that house prices rose just 0.1% in December and Richard Donnell, a spokesperson for the company, said that economic growth in 2010 could be hampered by slow growth in household income and unemployment.
If this proves correct it will really weigh down on the pounds resolve with opportunities to buy both Euros and Dollars above current levels few and far between.
Tuesday, 29 December 2009
Tuesday, 15 December 2009
RICS house price data comes out positive
A release this morning showed that house prices in England and Wales rose at their fastest pace in three years in November, but there are signs that activity may be levelling off as new instructions to sell hit a 2 year high, leveling out the imbalance of demand out weighing supply.
There are concerns that the housing market may suffer a relapse next year if the economy fails to pick up strength and unemployment continues to rise.
The announcement has given Sterling a boost this morning though with the Pound gaining strength over a whole basket of major currencies. During the run up to Christmas where traditionally trading volumes decrease significantly these windows of opportunity are not to be sniffed at, by making sure you have an trading facility open with a currency broker you are in a position to be able to secure currency rates for now and in the future over the phone. FCD offer free no-obligation accounts, why not find out more about why we are one if the UK's leading independent foreign exchange brokerages by clicking on www.currencies.co.uk
There are concerns that the housing market may suffer a relapse next year if the economy fails to pick up strength and unemployment continues to rise.
The announcement has given Sterling a boost this morning though with the Pound gaining strength over a whole basket of major currencies. During the run up to Christmas where traditionally trading volumes decrease significantly these windows of opportunity are not to be sniffed at, by making sure you have an trading facility open with a currency broker you are in a position to be able to secure currency rates for now and in the future over the phone. FCD offer free no-obligation accounts, why not find out more about why we are one if the UK's leading independent foreign exchange brokerages by clicking on www.currencies.co.uk
Euro news
Employment in the Eurozone fell for the fifth consecutive quarter by 0.5%, this means somewhere in the region of 712,000 more people were out of work between the months of July and September.
Recently it was stated that the Eurozone is slowly coming out of recession, but these figures show that it will be a long, drawn out process.
Suprisingly Sterling closed today weaker then it had finished Friday? It really does make you ask the question that is the Pound cant gain ground on the back of very negative Euro data what will happen on the back of a positive Eurozone release??
Recently it was stated that the Eurozone is slowly coming out of recession, but these figures show that it will be a long, drawn out process.
Suprisingly Sterling closed today weaker then it had finished Friday? It really does make you ask the question that is the Pound cant gain ground on the back of very negative Euro data what will happen on the back of a positive Eurozone release??
Wednesday, 9 December 2009
Alistair Darling Pre-Budget report
The Chancellor, Alistair Darling, will today insist that the country must continue to spend its way out of the economic crisis. In his Pre-Budget report at lunchtime today it is thought that he is going to announce another spending spree, seeing expenditure next year rise by £30 billion.
It is already thought that the current £830 billion debt pile the Government has already placed the UK under is threatening any genuine recovery, so how wise is it adding to that already huge burden??
Each time we have seen the Bank of England's Monetary Policy Committee release money into the economy in the form of Quantitative Easing we have seen Sterling exchange rates tumble, and I see no reason why this announcement in the Pre Budget Report will not have a similar effect.
This morning has already seen Sterling lose significant ground against a basket of currencies, a trend that I anticipate seeing throughout the day.
Why mot drop me an email letting me know your thoughts about what might or might not happen today on sah@currencies.co.uk
It is already thought that the current £830 billion debt pile the Government has already placed the UK under is threatening any genuine recovery, so how wise is it adding to that already huge burden??
Each time we have seen the Bank of England's Monetary Policy Committee release money into the economy in the form of Quantitative Easing we have seen Sterling exchange rates tumble, and I see no reason why this announcement in the Pre Budget Report will not have a similar effect.
This morning has already seen Sterling lose significant ground against a basket of currencies, a trend that I anticipate seeing throughout the day.
Why mot drop me an email letting me know your thoughts about what might or might not happen today on sah@currencies.co.uk
Tuesday, 8 December 2009
UK house prices rise
House prices rose by 1.4% in November, according to todays Halifax house price index released this morning, faster than analysts expected, driven by high demand and low numbers of properties for sale.
Compared to this time last year, prices in the three months to November are 1.6% down, up significantly from the 17.7% annual rate of decline in April.
This suprisingly positive news could bring about windows of opportunity to buy above current levels as investors start to believe in the Pound again.
For live prices and up to the second market information call us free on 0800 328 5884.
More later ...........
Compared to this time last year, prices in the three months to November are 1.6% down, up significantly from the 17.7% annual rate of decline in April.
This suprisingly positive news could bring about windows of opportunity to buy above current levels as investors start to believe in the Pound again.
For live prices and up to the second market information call us free on 0800 328 5884.
More later ...........
Monday, 7 December 2009
Currency blogs..........
If you enjoy reading the posts on my blog why not take a look at ones written by some of my colleagues:
http://forexreporting.blogspot.com
http://currencyinformation.blogspot.com
http://fcdcurrencies.blogspot.com
Let me know what you think?
If there is anything specific you would like me to write about feel free to let me know.
Many thanks
Steve
http://forexreporting.blogspot.com
http://currencyinformation.blogspot.com
http://fcdcurrencies.blogspot.com
Let me know what you think?
If there is anything specific you would like me to write about feel free to let me know.
Many thanks
Steve
Exchange rate forecast
The main focus for sterling exchange rates is likely to be the Chancellors pre-Budget report on Wednesday followed by the Bank of England (BoE) Interest rate meeting on Thursday. The chancellor is expected to give more details of how he plans to halve the budget deficit over four years. Public spending cuts are expected and he may discuss banking bonuses and the so called new ‘super tax’. This could cause volatility depending on how well the report is received by the markets.
Moving to Thursday, the BoE are expected to keep interest rates on hold, but may shed some light on the future of the quantitative easing programme. This has caused market volatility in the past so you may want to consider how this could affect your currency transfer.
Pound euro rates uncertain forecasts
Market analysts are split at present about which way the pound is set to go. The Centre for Economics and Business Research in the UK has said that they see the Pound/Euro rate falling below £1 to 1 Euro for the first time and the US Dollar falling to $1.40. They put this down to the need for the pound to fall to compensate for low interest rates, in order to attract investment and demand from overseas. Last December the pound lost almost 15% against the Euro, if the same were to happen again we would certainly fall below the 1 to 1 mark.
Other analysts believe the pound may recover in the medium term if the UK shows GDP growth and the BoE’s quantitative easing programme comes to an end.
Moving to Thursday, the BoE are expected to keep interest rates on hold, but may shed some light on the future of the quantitative easing programme. This has caused market volatility in the past so you may want to consider how this could affect your currency transfer.
Pound euro rates uncertain forecasts
Market analysts are split at present about which way the pound is set to go. The Centre for Economics and Business Research in the UK has said that they see the Pound/Euro rate falling below £1 to 1 Euro for the first time and the US Dollar falling to $1.40. They put this down to the need for the pound to fall to compensate for low interest rates, in order to attract investment and demand from overseas. Last December the pound lost almost 15% against the Euro, if the same were to happen again we would certainly fall below the 1 to 1 mark.
Other analysts believe the pound may recover in the medium term if the UK shows GDP growth and the BoE’s quantitative easing programme comes to an end.
Friday, 4 December 2009
Eurozone interest rates stay at 1%
As expected the ECB yesterday announced that Eurozone interest rates would remain at the hiostoric low of 1% for the next month. President Jean Claude Trichet also announced that he would be looking to tighten up measures used to support liquidity in the banking sectoe.
The foreign exchange markets reacted positively to this news and unsuprisingly the single currency continued to make gains throughout the day.
This, to me, is a clear sign that the outlook in the Eurozone is much rosier than in the UK which could continue to see the Pound go under increasing pressure during the coming weeks qand months.
Great news for those selling Euros, not so good for those needing to buy!!
The foreign exchange markets reacted positively to this news and unsuprisingly the single currency continued to make gains throughout the day.
This, to me, is a clear sign that the outlook in the Eurozone is much rosier than in the UK which could continue to see the Pound go under increasing pressure during the coming weeks qand months.
Great news for those selling Euros, not so good for those needing to buy!!
Thursday, 3 December 2009
ECB interest rates
During what is likely to be a very busy day on the foreign exchange markets today by far the outstanding release will be the interest rate announcement by the European Central Bank.
Expectations are that levels will remain on hold at 1% and anything other than that will rock the markets with an increase likely to cause significant strength for the single European currency and a cut (the least likely scenario) having the opposite effect with currencies gainning signifcant ground.
The forecast is that at some point soon the ECB will begin to increase the cost of borrowing, especailly as they are now officially out of recession. The liklihood is that this will be significantly sooner than the Bank of England raise rates in the UK. Over time this may well see the Euro keep gaining against the Pound, potentially, as Buzz Lightyear once (kind of) said "to parity and beyond!!!"
Expectations are that levels will remain on hold at 1% and anything other than that will rock the markets with an increase likely to cause significant strength for the single European currency and a cut (the least likely scenario) having the opposite effect with currencies gainning signifcant ground.
The forecast is that at some point soon the ECB will begin to increase the cost of borrowing, especailly as they are now officially out of recession. The liklihood is that this will be significantly sooner than the Bank of England raise rates in the UK. Over time this may well see the Euro keep gaining against the Pound, potentially, as Buzz Lightyear once (kind of) said "to parity and beyond!!!"
Wednesday, 2 December 2009
Dubai World finance issues weigh heavily on Dollar
As fears over the economic turmoil coming out of Dubai, especially surrounding Dubai World start to suside the Dollar appears to be starting to suffer. As reports came out from Dubai World regarding the finacial difficulties they found themselves in it appeared that people began moving funds into the relative safe haven of the Greenback, causing the Dollar to strengthen and GBPUSD exchange rates fall.
Now, as things are beginning to settle down a little, investors appear to be selling off the Dollar causing it to weaken off again. As a result the Dollar slid by nearly 2 cents against the Pound during yesterday's session - if you were buying Dollars you would have received somewhere in the region of $3,900 extra by timing your trade well yesterday, another reason why having a broker acting as your eyes and ears on the market can prove extremely beneficial.
Now, as things are beginning to settle down a little, investors appear to be selling off the Dollar causing it to weaken off again. As a result the Dollar slid by nearly 2 cents against the Pound during yesterday's session - if you were buying Dollars you would have received somewhere in the region of $3,900 extra by timing your trade well yesterday, another reason why having a broker acting as your eyes and ears on the market can prove extremely beneficial.
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