All posts by mporter

UK GDP

The Pound has fallen this morning following the release of the latest UK GDP figures that indicate that the UK slipped back into recession in the first quarter of 2012. According to the Office for National Statistics (ONS) Gross Domestic Product (GDP) fell 0.2% quarter on quarter and was unchanged year on year. The contraction in UK GDP came as a surprise to many analysts who had been expecting a small amount of growth in the region of 0.1% QoQ. Today’s GDP figures are a preliminary estimate based on about 40% of the data that will be used by the ONS to reach the final GDP figure and many will be hoping that the reading could be revised higher at a later date.

GBPUSD 1.6095
GBPEUR 1.2175
EURGBP 0.8214
EURUSD 1.3220

The following rates are shown for indicative purposes only. Please note the rate you are able to achieve will depend on the amount of currency being purchased. Please do not hesitate to contact the dealing team on +44 (0) 1695 581 669 for a live quote.

25/04/12 09:55

GBPEUR 19 MONTH HIGH

The Pound has appreciated to a 19 month high against the Euro and towards recent highs against the US Dollar following the release of minutes from the Bank of England’s Monetary Policy Committee (MPC) April meeting. The minutes showed that the nine member MPC voted 8-1 in favour of keeping the Bank’s Quantitative Easing Asset Purchase Programme (QE) on hold at its current level of £325bn, with only David Miles voting for a £25bn expansion. At the previous meeting in March, two members David Miles and Adam Posen had voted for a £25bn expansion, the defection of Adam Posen to voting for no change to QE, coupled with yesterday’s higher than expected UK Consumer Price Index inflation data has reined in expectations of further QE from the Bank of England. As previously discussed, aggressive QE from the Bank of England has posed a significant threat to the value of the Pound. As this threat recedes, the Pound has appreciated.

Currency Matters can offer a number of products which can help you plan your future currency requirements. By using a Forward Contract it is possible to purchase currency today at a guaranteed exchange rate for settlement at a later date. A small deposit is required to secure a Forward Contract with the balance due by the agreed future value date.

Please do not hesitate to contact the dealing team on +44 (0) 1695 581 669 for further information or for a live quote.

11:30 18/04/12

Sterling-Euro Highs

The Pound has pushed higher towards the most recent GBPEUR highs of 1.2161 (EURGBP 0.8223) last seen on the 9th January 2012, hitting a high so far of 1.2153 before falling back slightly. The UK with its AAA credit rating is currently being viewed as a relative safe haven as investors continue to be concerned about the on-going Euro zone debt crisis. Switzerland the traditional safe haven has lost some of its safe haven status as the Swiss National Bank continues to enforce the EURCHF floor at 1.20. The Pound also continues to trade near its recent highs against the USD at 1.59.
EURUSD 1.3170
EURGBP 0.8250
GBPEUR 1.2120
GBPUSD 1.5960
GBPCHF 1.4570
EURCHF 1.2020
The following rates are shown for indicative purposes only. Please note the rate you are able to achieve will depend on the amount of currency being purchased. Please do not hesitate to contact the dealing team on +44 (0) 1695 581 669 for a live quote.
12/04/12 12:40

Greek Debt Swap Deadline

The Euro has recovered mildly ahead of Thursday’s Greek debt swap deadline. Investors have until Thursday 20:00 GMT to agree to swap their Greek bonds for new bonds worth approximately 70% less. 75% of bond holders need to accept the deal for it to pass. The European Union and the International Monetary Fund have warned that if the deal is not approved, Greece will not receive its latest bailout of €130bn, likely leading to a Greek default.

On the Interbank market the Euro currently trades at:
EURUSD 1.3150
EURGBP 0.8360 (GBPEUR 1.1961)
EURCHF 1.2055
EURJPY 106.20

Please do not hesitate to contact the dealing team on +44 (0) 1695 581 669 for further information or to discuss how Currency Matters can offer you significant savings and eliminate currency risk.

10:45 07/03/12

The Pound has fallen this morning …

The Pound has fallen this morning following the release of minutes from the Bank of England Monetary Policy Committee (MPC) meeting held on the 8th and 9th February. At that meeting the Bank decided to hold interest rates at the historic low of 0.50% and extend Quantitative Easing (QE) by an additional £50bn, taking the total Asset Purchase Programme to £325bn.

The minutes showed that the MPC was split over the size of the expansion of its Quantitative Easing Asset Purchase Programme. Of the nine member strong MPC, seven members voted to expand QE by an additional £50bn whilst two members voted for a larger expansion of £75bn.

As discussed in previous blogs, the threat of further QE continues to undermine the value of the Pound.

As I am writing this GBPEUR has slipped back below interbank 1.19, to a low of 1.1859 before recovering slightly towards 1.1870. Against the US Dollar the Pound has slipped back below 1.58 and currently trades at 1.5710.

Please do not hesitate to contact the dealing team on +44 (0) 1695 581 669 for further information or to discuss how Currency Matters can offer you significant savings and eliminate currency risk.

10:00 22/02/12

BoE Quarterly Inflation Report

The Pound has appreciated modestly following the release of the Bank of England’s Quarterly Inflation Report. The Pound has pushed back to 1.57 against the US Dollar from this morning’s low of 1.5676 and forced EURGBP back below 0.84p, currently at 0.8384 (GBPEUR 1.1927).

A copy of the Bank of England’s Inflation Report can be found at

http://www.bankofengland.co.uk/publications/inflationreport/ir12feb.pdf

Accurate at time of writing 10:40 15/02/12.

Currency Matters proudly sponsor Everton FC striker Denis Stracqualarsi.

Currency Matters proudly sponsor Everton FC striker Denis Stracqualarsi.
http://www.evertonfc.com/player-profile/denis-stracqualursi

Everton secured the signature of Denis Stracqualarsi on transfer deadline day in August 2011.

The striker arrived on a season-long loan from Argentinian top-flight outfit Tigres where he had been top scorer the previous season.

Stracquarlursi, a 6ft 3in frontman, is renowned in his homeland for his muscular forward play and aerial prowess.

In the second part of the 2010/11 season he scored 11 times in 19 games and had subsequently become a target for champions Velez Sarsfield before David Moyes swooped.

Stracqualursi arrives with the rare feat of having notched a hat-trick against heavyweight Boca Juniors to his name – an achievement he recorded in April 2011.

Nicknamed El Traca – the firecracker – he has also played for Gimnasia La Plate in his homeland and boasted an overall record of 27 goals in 84 appearances during his tenure in South America.
Stracqualursi made his debut for Everton in the 3-1 win over Wigan in September 2011, the striker set-up Royston Drenthe within minutes of coming on late in the second half.

BoE

As expected the Bank of England has maintained interest rates at their record low of 0.50% and has voted to increase the size of its asset purchase programme, financed by the issuance of central bank reserves known as Quantitative Easing by £50billion to a total of £325 billion.

The Bank of England’s latest inflation and output projections will be published in the Inflation Report to be published at 10:30 on Wednesday 15th February and the minutes of today’s meeting will be published at 09:30am on Wednesday 22nd February.

The Pound currently trades at 1.19 against the Euro and at 1.58 against the US Dollar.

UK GDP & BoE

The Pound has recovered back above 1.20 against the Euro and continues to trade around 1.55 against the US Dollar on the interbank market.

Despite UK Gross Domestic Product (GDP) data showing that the UK economy contracted by 0.2% in the final quarter of 2011, the initial market reaction suggests that many expected the data could have been worse.

The recent UK economic data, coupled with the European debt crisis and anaemic global growth points to the UK struggling to avoid entering into another technical recession i.e. two consecutive quarters of negative GDP growth.

Whilst many analysts are hopeful of a mild or shallow recession in the UK, the fragile outlook increases the likelihood of a further expansion of the Bank of England’s Quantitative Easing Asset Purchase Programme (QE). Moreover, minutes released today from the Bank of England’s last Monetary Policy Committee (MPC) meeting held on January 12th indicated that a number of MPC members believed it was a likely a further expansion of asset purchases (QE) would be required, possibly as soon as the next MPC meeting due on the 9th February.

Aggressive QE from the Bank of England would pose a threat to the Pounds value and is one of the factors preventing the Pound forging higher against the troubled Euro. The Pound may be able to hold against a troubled Euro but could struggle against the US Dollar.

Please do not hesitate to contact the dealing team on +44 (0) 1695 581 669 for further information or to discuss how Currency Matters can offer you significant savings and eliminate currency risk.