Today's Currency Market Focus
GBP: Another dive down
EUR: Is the ECB warming us up?
USD: Pause in rally
GBP: Another dive down
The Pound dropped to a five-month low against the Euro yesterday as fears of a ‘no deal’ Brexit are on the rise.
With less than 8 eight months to go until Britain leaves the EU, nerves are fraying.
Last week the Bank of England stated that the risks of a no deal situation are “uncomfortably high”.
Adding to this, Liam Fox, the Trade Minister, said this week that the odds of exiting without a deal were “60-40”.
The uncertainty of Brexit is overshadowing any UK economic news. Let’s hope the fear mongering is a negotiation bluff with the Europeans.
EUR: Is the ECB warming us up?
The European Central Bank (ECB) has been criticised for being behind the curve.
Admittedly, the last financial crisis hit the EU harder than most, so they are understandably a cautious bunch.
However, yesterday the ECB announced that the recent acceleration in wage growth in the EU could foreshadow higher future inflation. Hints like this often precede a change of policy.
If the economic numbers continue to pick up, then the ECB may well have to play catch up with the other big central banks.
USD: Pause in rally
The Dollar took a breather yesterday. Traders attributed the slight dip to the absence of any news.
To recap, the Dollar has been rising on fears of global trade wars, so a lack of news is a reason to sell.
Looking beyond the trade wars, the economic picture in the US continues to point to solid growth coupled with tight labour conditions.
This is a recipe for further rate rises this year, which will help underpin the Dollar.
There a light economic calendar in the first half of the week but President Trump could always liven things up.
![Key Currency](/images/stories/blogimages/Cle_France_Key_Currency.jpg)
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 8th August 2018 at 14:30
£1.00 GBP = 1.1100 EURO
£1.00 GBP = 1.2870 USD
£1.00 GBP = 1.7381 AUD
£1.00 GBP = 1.9094 NZD
£1.00 GBP = 1.6806 CAD
£1.00 GBP = 17.2689 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.
Concerned about Brexit? download our "Buyers Guide to Brexit" PDF document.
For everything you need to know about French property visit www.clefrance.co.uk