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
