Friday 10th May 2013
Good morning. Sterling remains supported at relatively high levels against the Euro, close to the best in around 3 months. Against the Dollar however, the Pound has fallen due to a strengthening of the US currency.
All in all, the UK economy has posted some decent figures this week, which has helped the Pound remain buoyant against other currencies, and has also influenced the decision this week by the Bank of England to keep interest rate and QE on hold. So what do I have in store for you today?
- UK industrial and manufacturing figures better than expected
- Bank of England leaves interest rates and QE on hold
- US Dollar gains strength, pushing GBP/USD rates lower.
- How Stop Loss orders can help you achieve the best exchange rates
UK economic figures better than expected, boosting Sterling
These numbers were higher than the markets were expecting, and as a result the Pound has remained supported against the Euro and other currencies. This follows a decent run for UK data in the last few weeks, and this recent improved news on the UK economy has boosted hopes that activity is gaining a firmer footing. This is one of the reasons the Bank of England held off any further stimulus this week, which I’ll look at in a moment.
This morning however we had Trade Balance numbers from the UK that were slightly worse than expected. This has taken the steam out of the Pounds run, and pulled rates slightly lower.
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Bank of England refrains from changing interest rates or QE levels.
In the last few months, 3 of the members had voted for an increase in QE. The better numbers coming from the UK however, including the 0.3% growth in the first 3 months, seems to have had an impact on the chance of further stimulus.
In 2 weeks’ time, we’ll be privy to how the 9 members voted, and this will give a clearer indication of where the Pound may move in the future. If for example only 1 of the members voted for QE, I would expect the Pound to make gains.
US Dollar gains strength, pushing GBP/USD rates lower.
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How ‘Stop Loss’ Orders can help you get the best exchange rates
Most of you reading this blog are doing so because you want to achieve the best possible exchange rates, and convert your funds at the best time. Of course it’s impossible to predict where rates will go, however there are tools that you can use to help you make the most of your currency. One of these is the ‘Stop Loss’ order.
These work by placing a lower limit in the market, a ‘worst case scenario’ and should the rate drop below this, we purchase your currency automatically.
Stop Losses are very useful tools when the market is rising, as you can raise your Stop Level at any time as the market rises. They are very popular for those buying property or need Euros, as it allows effective budgeting.
- Want to know more about Stop Loss Orders?
- Need the very best Exchange Rates to buy or sell currency?
- Would you like to discuss what’s happening in the market to help you time your purchase?
- Sick of getting poor rates and service from your bank?
If you have answered yes to any of the above questions, then you would benefit from a free consultation with me about you requirements. I can discuss what you need to do, and explain the options you can consider within your time frame. The rates of exchange I source for my clients are commercial levels that are up to 5% better than available at banks or other financial institutions.
Click here to send me a free enquiry today.
Have a great weekend.