GBP: Profit taking pause

Sterling took a dip yesterday after the latest wage data came in lower than expected, but at 2.8%, wage growth is now just above inflation. The implication is that low levels of unemployment (42-year low) is feeding through to real wage growth. 

The Bank of England (BoE) will be aware that it needs to tread a fine line. Parts of the UK economy (retail, construction, housing) are softening but inflationary pressures are building. It’s why markets are expecting the BoE to “gradually” keep raising rates. 

Today the all-important Consumer Price Index is released. Last month inflation came in lower than expected, which was Sterling negative. We’ll find out later whether it was a blip or not. 

EUR: Germany leads the way…down

The Euro steadied yesterday but it was due to falls in Sterling and the Dollar rather than anything positive for the Euro. 

There are growing concerns that the EU’s powerhouse Germany is undergoing a downturn. Both Bloomberg and The Telegraph have highlighted the recent “data slump”. 

On Tuesday, Germany’s ZEW Survey (a sentiment gauge) fell to 5-year lows. While it’s too early to talk about recession risks, it will cement the European Central Bank’s (ECB) cautious stance. 

Today we have the Eurozone consumer price index data for March. Any signs of weakness would see the Euro under more pressure. 

USD: Bounce off lows

The US Dollar got rewarded for strong data yesterday. Better than expected housing starts and capacity utilisation brought back buyers for the Dollar which had slumped to a three-week low against a currency basket at the start of the week.

President Trump stirred up both China and Russia on Monday accusing them of “playing the Currency Devaluation game”. This infers Trump is not pushing for a stronger Dollar. He knows a weak Dollar will help bring jobs back to the US, so those expecting a big Dollar rebound may be waiting a (long) while. 

Thanks For Reading, What Next?

To discuss current exchange rates and currency purchasing strategies, please contact your trader today on 01872 487 500.

If you don't yet have an account please request a free quote and we’ll look after you from there.

Have a great day,

Geoff Lambourne - Direct Dial me on 0044 (0)1872 487 470.

Current rates: 

Wednesday 18th April 2018 at 10:30

£1.00 GBP = 1.1468 EURO

£1.00 GBP = 1.4182 USD

£1.00 GBP = 1.8290 AUD

£1.00 GBP = 1.9399 NZD

£1.00 GBP = 1.7856 CAD

£1.00 GBP = 17.0027 ZAR

Need to Send Money Abroad?

At Clé France, many of our customers have a need for currency exchange.

We are pleased to have partnered with Key Currency to offer our customers favourable exchange rates on international currency transfers.

Key Currency is an award-winning currency exchange specialist, Key Currency Limited is authorised and regulated by the Financial Conduct Authority as an Authorised Payment Institution (Financial Services Register No. 753989) and experienced in executing high-volume transactions.

As a Clé France website visitor, you qualify for preferential exchange rates when you transact through Key Currency.

Save money on your foreign currency transfers

Key Currency can save you money by offering more competitive rates of exchange than retail banks.

Clients can typically save you 3-4% of the total transaction value, which can result in significant cost savings.

All client funds are held in segregated accounts with top-tier banks keeping your money safe and secure.

Download our "Buying A Property in France" Guide PDF document now.

For everything you need to know about French property visit www.clefrance.co.uk 

GBP: Sterling leads the way

Sterling finished last week on a high - up against nearly all the majors. It ended at 10-week highs against the Dollar and 11-month highs against the Euro. 

It was the move against the Euro that really stood out as GBP finally broke out of the range it’s been stuck in since last May; having failed to break above 1.15 on three previous occasions. 

However, as we pointed out last week the timing is strange as the UK economy has hit a little bit of a soft patch. Could it be that Sterling’s rally is due to the repatriation of investor dividends – a longstanding seasonal pattern that happens every April – rather than a fundamental shift?

EUR: Out of step, out of puff

As we have noted above, the Euro finally lost the tug-o-war with Sterling which has been going on for months (felt like years). 

It hasn’t come as a complete surprise as the Euro has struggled to maintain last year’s upward momentum. 

The minutes from the European Central Bank (ECB) showed that EU policymakers are still a long way off considering the possibility of raising interest rates. With other central banks beginning to tighten, the Euro looks out of step. 

Strong economic data will only boost the Euro if investors believe it can change the stance of the ECB. 

Not a lot scheduled for today but German and Eurozone ZEW Surveys (measures economic sentiment) are both due out tomorrow. 

USD: Dollar steadies after Syria strikes

The dollar firmed up this morning following the military strikes on Syria over the weekend.

President Trump posted “Mission Accomplished” on Twitter which indicated that the conflict may be over (for now).

Friday’s University of Michigan sentiment index was lower than forecast, but investors still believe the Fed will not waiver and continue to increase US interest rates – unless of course there is an outbreak of military or trade warfare.

Thanks For Reading, What Next?

To discuss current exchange rates and currency purchasing strategies, please contact your trader today on 01872 487 500.

If you don't yet have an account please request a free quote and we’ll look after you from there.

Have a great day,

Geoff Lambourne - Direct Dial me on 0044 (0)1872 487 470.

Current rates: 

Tuesday 17th April 2018 at 11:00

£1.00 GBP = 1.1575 EURO

£1.00 GBP = 1.4320 USD

£1.00 GBP = 1.8415 AUD

£1.00 GBP = 1.9502 NZD

£1.00 GBP = 1.8004 CAD

£1.00 GBP = 17.2418 ZAR

Need to Send Money Abroad?

At Clé France, many of our customers have a need for currency exchange.

We are pleased to have partnered with Key Currency to offer our customers favourable exchange rates on international currency transfers.

Key Currency is an award-winning currency exchange specialist, Key Currency Limited is authorised and regulated by the Financial Conduct Authority as an Authorised Payment Institution (Financial Services Register No. 753989) and experienced in executing high-volume transactions.

As a Clé France website visitor, you qualify for preferential exchange rates when you transact through Key Currency.

Save money on your foreign currency transfers

Key Currency can save you money by offering more competitive rates of exchange than retail banks.

Clients can typically save you 3-4% of the total transaction value, which can result in significant cost savings.

All client funds are held in segregated accounts with top-tier banks keeping your money safe and secure.

Download our "Buying A Property in France" Guide PDF document now.

For everything you need to know about French property visit www.clefrance.co.uk 

Sterling has rocketed to a 11 month high against the Euro. 

If you need to sell GBP STERLING to buy EURO – now could be a great time to take advantage of Sterling’s spike. 

We can also lock-in a rate for you today, even if your international transfer or payment is not for a while.

Sterling soars to 11-month high

Please get in touch with myself or a member of my team today to discuss limiting your exposure. 

Click here for a quick quote today

Or speak to a dealer now on +44 (0) 1872 487 500.

Thanks for reading,

Geoff Lambourne - Direct Dial me on 0044 (0)1872 487 470.

Current rates: 

Thursday 12th April 2018 at 17:00

£1.00 GBP = 1.1561 EURO

£1.00 GBP = 1.4244 USD

£1.00 GBP = 1.8364 AUD

£1.00 GBP = 1.9314 NZD

£1.00 GBP = 1.7926 CAD

£1.00 GBP = 17.1221 ZAR

Need to Send Money Abroad?

At Clé France, many of our customers have a need for currency exchange.

We are pleased to have partnered with Key Currency to offer our customers favourable exchange rates on international currency transfers.

Key Currency is an award-winning currency exchange specialist, Key Currency Limited is authorised and regulated by the Financial Conduct Authority as an Authorised Payment Institution (Financial Services Register No. 753989) and experienced in executing high-volume transactions.

As a Clé France website visitor, you qualify for preferential exchange rates when you transact through Key Currency.

Save money on your foreign currency transfers

Key Currency can save you money by offering more competitive rates of exchange than retail banks.

Clients can typically save you 3-4% of the total transaction value, which can result in significant cost savings.

All client funds are held in segregated accounts with top-tier banks keeping your money safe and secure.

Download our "Buying A Property in France" Guide PDF document now.

For everything you need to know about French property visit www.clefrance.co.uk 

GBP: Any more reasons to rally?

Sterling recorded its best quarterly performance in nearly three years during Q1 of this year. It’s a well-deserved rally when you consider the progress on Brexit and talk of imminent rate hikes. 

However, this morning’s UK manufacturing PMIs is a reminder that the economy is not exactly booming. In fact, the construction sector is in recession and large swathes of retailers and restaurants are struggling to stay afloat. 

Tomorrow we get the all-important Services PMI. Services represent two-thirds of the economy, so it will be a good test for Sterling’s strength.

EUR: Reassuringly dull

The EU has done well so far to stay out of Trump’s ‘trade wars’. It’s giving the Euro a newfound safe-haven status. 

The gains from geopolitical rotation helped offset a poor showing yesterday from German retail sales which came in quite a bit lower than expected. It’s the latest in a series of surprisingly soft German data. 

This morning we’ve also seen the EU’s latest inflation reading (Consumer Price Index) come in less than forecast. Yet more evidence that the European Central Bank can sit back and do nothing.

USD: Tit for tat

Trade tensions between the US and China continue to be the main event in global financial markets. 

Yesterday a rebound in the Dow Jones helped bring some confidence back but it looks to be short lived. 

Today China has announced a raft of retaliatory tariffs with plans to impose up to 25% tariffs on 106 American products. 

And you can probably guess what’s going to happen next…Trump will come back even harder. For now this escalating battle between the world’s two biggest economies will overshadow any near-term economic news. In terms of currency markets, this will weigh on the Dollar and lead to greater risk aversion with emerging market currencies also set to be hit. 

To discuss current exchange rates and currency purchasing strategies, please contact your trader today on 01872 487 500. 

If you don't yet have an account please request a free quote and we’ll look after you from there.

Have a great day,

Key Currency.

For everything you need to know about French property visit www.clefrance.co.uk 

GBP – Break to the upside… finally

It’s been a long time coming but GBP/EUR finally broke out of its narrow trading range.

For the last 6 months GBP/EUR has been trapped between 1.11 to 1.14, but yesterday Sterling managed to bust through the ceiling.

It’s a result of a combination of things. Firstly, there’s been progress on Brexit with the EU and UK agreeing a transition deal on Monday. Secondly, the Bank of England (BoE) meeting yesterday saw two members vote to increase rates immediately. 

However, after an initial burst Sterling gave up some of its gains as the BoE reiterated that rate hikes would be “gradual”.

For those that have been frustrated by the level of GBP/EUR, make sure you are registered and ready to take advantage of the improved exchange rate. We are watching rates continuously throughout the day and can target levels for you. 

EUR – Behind the curve

There’s no doubt the Eurozone is doing well economically. The numbers have been buoyant for some time. This was reinforced yesterday by the the latest Economic Bulletin from the European Central Bank (ECB), which was upbeat.

But after many years of poor economic growth and high unemployment, the European Central Bank (ECB) is showing no signs of increasing rates.

As we know, currencies are a relative measure. So when the UK, US and China have all begun to increase interest rates, it weakens investor appetite for the Euro.

As the saying goes: in a world that’s moving forward, standing still is moving backwards.

USD – Trading blows

Yesterday the Federal Reserve (Fed) raise rates as expected for the first time this year. More importantly, the Fed forecast a steeper path of hikes in 2019 and 2020 due to an improving economic outlook.

President Trump also announced tariffs on $50 billion of Chinese imports. The Chinese are not impressed and are now expected to retaliate with a little 'plan' of their own.

The greater risk is whether this kick offs a trade war begins between the world’s two largest economies. Wide-ranging tariffs will lead to higher US inflation and lower Chinese growth, so neither country or currency would benefit.

Overall, the Dollar was weakened as investors reacted more to the tariff news than the Fed meeting.

It’s been an eventful week with some major moves in exchange rates.

We can look to take advantage of these upside moves or structure a plan to help mitigate your risk.

Current rates: 

Friday 23rd March 2018 at 10:40

£1.00 GBP = 1.1431 EURO

£1.00 GBP = 1.4093 USD

£1.00 GBP = 1.8276 AUD

£1.00 GBP = 1.9469 NZD

£1.00 GBP = 1.8220 CAD

£1.00 GBP = 16.6491 ZAR

Need to Send Money Abroad?

At Clé France, many of our customers have a need for currency exchange.

We are pleased to have partnered with Key Currency to offer our customers favourable exchange rates on international currency transfers.

Key Currency is an award-winning currency exchange specialist, Key Currency Limited is authorised and regulated by the Financial Conduct Authority as an Authorised Payment Institution (Financial Services Register No. 753989) and experienced in executing high-volume transactions.

As a Clé France website visitor, you qualify for preferential exchange rates when you transact through Key Currency.

Save money on your foreign currency transfers

Key Currency can save you money by offering more competitive rates of exchange than retail banks.

Clients can typically save you 3-4% of the total transaction value, which can result in significant cost savings.

All client funds are held in segregated accounts with top-tier banks keeping your money safe and secure.

Download our "Buying A Property in France" Guide PDF document now.

For everything you need to know about French property visit www.clefrance.co.uk