Good morning. We’ve seen the UK currency rebound this morning. I mentioned in yesterday’s post that we would see the latest UK services data today. This was released at 09:30am and was better than forecast. The number came in at 55.1 against a forecast of 54 (anything above 50 indicates expansion). Services is a very important release, as it comprises about 80% of UK economic output. Due to its importance, this release often affects the currency markets. The decent result shows that the UK economy continues to beat expectations, and it’s looking more and more likely the dip in economic output earlier in the year was largely down to the cold snap we had in March.
Pound/Euro rates have risen to around €1.1350 due to this morning’s data. This puts the Pound back in the middle of the €1.13 / €1.14 range that it’s been stuck in for several months. As I’ve said before, unless Read More
Sterling found a little much-needed support today, on speculation that maybe the Bank of England will raise rates soon after all. There’s been a little uncertainty recently, with some members of the MPC wanting to raise rates, and other wanting to hold off. One of the rate setters earlier, Mr Saunders, said that much of the spare capacity on the economy has now been used up, and that interest rates may need to rise faster than markets expect. This helped push up Sterling/Euro rates, but Read More
Pound/Euro rates weakened further last night, as the Euro gained strength and became more expensive to buy. As we thought, the EU Council meeting was dominated by migration talks. It looks like the EU have come to an agreement on this. It’s now less likely we’ll see elections in Germany now, and this is what helped the Euro gain. Overnight the rate to buy Euros dropped to around €1.1250. However this morning the rate has recovered and now seems settled at €1.13.
The recover was due to Read More
Good morning. The Pound has fallen away this week, due to speculation about when interest rates may rise in the UK. In today’s post we’ll take a look at why the Pound has fallen against the Euro, and whether the Pound will go back up in the short to medium term.
In the most recent Bank of England meeting, 3 of the 9 members voted to raise interest rates. This caused the Pound to rise on speculation that rates could go up in August. (When there is a chance of interest rates rising, a currency usually strengthens, and vice versa). However, this week we’ve had Read More
People from all walks of life are reliant on currency, from Private individual’s buying a property overseas, to companies paying invoices in a foreign currency. Market fluctuations can therefore have a huge impact on the cost. When deciding the best time to exchange currency, it’s important to Read More