Monthly Archives: December 2010
Merry Christmas readers,
Wishing all our readers a happy and safe Christmas and a fruitful 2011!
From the Euro Rate Forecast team.
If you are looking for the below remember to contact us!!
Best rates on currency
Daily market reports
No commission charged
Award winning service
Public Limited Company
10 years trading
Free account opening
We will be here and blogging every non-bank holiday working day over the festive season.
Sterling Exchange rates this year have moved a lot with swings over 16% against the euro and 14% against the US dollar. This highlights the importance of timing transfers as even over the last 2 months an additional USD 15,080 or EURO 15,140 would have be achieved on a £200,000 transfer if you bought at the peak rather than the low.
Next year I think there are a number of large stories that could shape exchange rates.
Firstly the introduction of budget cuts in January across the UK. This ranges from the VAT rise to fuel cost and efficiency target on every area of government. Many are expecting a large increase in unemployment and hence consumer confidence, all key to the outlook of sterling.
Secondly sterling has a vast amount of exposure to the euro zone debt crises so if any other state was to fall and need support that additional money out of the economy is not going to help.
Third we have the issues the Bank of England has with the inflation levels in the UK. Normally this is counted by raising interest rates however this could cause problems with the housing market, and unemployment levels further.
Finally we have the coalition government. Over the last few weeks the government has again come under pressure and could theoretically add political uncertainty which generally weakens the currency in question. Add the above points and how the cracking government handles what’s being called broken Britain and it makes next year very uncertain.
If you are looking or planning to send money abroad next year you also have to look at the currency that you are buying, the other side of the coin and each have their own problems. The US is having major issues with unemplyment, the euro has its debt crises, but most of the other majors have natural resources that continue to be in demand so are gaining making them more expensive to buy. If you would like more information about a particular currency pair then feel free to contact us.
Good morning readers,
On a rather snowy day across the UK many may not consider the effects on the financial sector. However these can be vast and I would not be surprised to see several cents be taken off the value of sterling due to the weather over the coming days. Just look back to earlier this year when snow landed last in February and you can see the correlation.
Many are stuck indoors due to the weather which dramatically drops productivity along with retail sales in the UK. We have talked before about how important these both are to the strength of the UK. With less spending consumer confidence is also hit which can result in more unemployment. We have consumer confidence for the UK released tomorrow morning so if you are reading this and need to sell euro’s and send money abroad get in contact today for a full briefing on what could happen over the coming 48 hours.