14th September 2010
Good morning. The pound has fallen overnight, after much worse than expected house price data. The Eurozone has also increased it’s forecasts, strengthening the Euro and compounding the issue to push GBP/EUR rates down. Today we’ll look at this in detail, after the usual snapshot of rates as at 08:30am:
- GBP/EUR 1.1923
- GBP/USD 1.5382
- GBP/AUD 1.6459
- GBP/NZD 2.1091
- GBP/CAD 1.5801
- GBP/CHF 1.5423
- GBP/ZAR 10.946
- GBP/HKD 11.949
- GBP/NOK 9.3917
- GBP/JPY 128.05
- EUR/USD 1.2932
A bigger proportion of surveyors are expecting house prices to fall in the coming months than at any time since March last year. Some 38% more of those asked, in the survey by the Royal Institution of Chartered Surveyors (Rics), expected prices to fall rather than rise in the next three months.
Markets only expected 11% of those asked to expect a fall, and so the figures show that the housing market is not as strong as hoped. House prices are a reflection of the economy as a whole, and so the pound has suffered this morning. Against the Euro, the pound at the time of writing sits at €1.1931.
The European Commission has raised its forecast for growth in the EU this year, after “particularly strong” growth in the second quarter. The commission now expects growth in 2010 of 1.8% in the EU, up from an earlier estimate of 1%, and of 1.7% in the 16-member eurozone, up from 0.9%.
As it seems that the EU is now growing faster than the UK, the Euro has strengthened accordingly. This means it’s more expensive to purchase, and so GBP/EUR rates have fallen as a result.
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