Good morning. Sterling rose against most currencies yesterday except the Euro. The single currency has become stronger over the last few days as European bank funding concerns eased. At 08:30am 2nd July 2010 are as follows:
- GBP/EUR 1.2128
- GBP/USD 1.5190
- GBP/AUD 1.7941
- GBP/NZD 2.1955
- GBP/CAD 1.6097
- GBP/JPY 133.39
- GBP/DKK 9.0322
- GBP/ZAR 11.655
- GBP/HUF 345.34
- EUR/USD 1.2520
EU banks borrowed less than expected from the ECB this week, easing funding concerns and helping the Euro to gather strength. The recent surge in Sterling Euro rates seems to have ended, and we’ve now dropped back away somewhat from the 20 month highs seen earlier in the week.
As fears begin to ease over the debt problems in the EU, the Euro may continue to gain strength which may cause GBP/EUR rates to fall.
Pound gains against US Dollar
The US Dollar has weakened over the last few days, helping to push GBP/USD rates to an 8 week high. Rates have risen from the $1.30’s earlier in the year to back above the $1.50 level. If you need to purchase USD, then contact us today to discuss how the process of trading with FCG works.
Sterling movements inflation driven
Over the coming weeks, Sterling exchange rates will likely be driven by inflation measures. With the Bank of England divided over whether to raise interest rates later this year, inflation measures over the coming weeks and months may have a big impact.
Any news that shows inflation is high may increase the call for higher interest rates. This in turn will drive investment towards the pound due to the higher return, and exchange rates could climb again.
If however there are lower inflation figures, or indeed the BoE make comments that they think inflation will drop without the need for rate hikes, then the pound could drop away as markets renew their fear over the speed of the UK recovery.
Getting the best exchange rates
Whichever currency you need to buy or sell, remember that our rates are up to 6% better than the banks offer. Whilst the natural inclination when you need to make a transfer abroad is to use your bank, it’s usually a very expensive way of doing so.
You can register an account with us for free, we don’t charge commission, and you could find that due to our commercial rates you achieve a significantly better deal than at banks or other financial institutions.
If you are looking for the best exchange rates, click the link below to send us an enquiry, and have a free consultation on what’s happening in the currency markets.