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IMF and World bank cause much volatility to global exchange rates with their comments. Sterling however has strengthened against the Euro and the CHF (Ben Amrany)
Sterling focus
Sterling exchange rates has rebounded this morning from yesterday’s low by half a cent against the Euro. Against all the majors that we trade the Euro and the Swiss Franc are the only
two currencies that the pound is up against. The spike against the EUR & the CHF is great news but the reason for the rest of our losses seems to be down to the IMF. They have commented this morning that the global economic recovery is weakening. More alarming is that out of all the developed economies it has stated that the UK economy could be in for the biggest decline with our GDP expected to shrink by 0.4% this year. Sterling in general has not been affected first thing but today’s data may now have a greater effect on the pound.
Today’s Data to watch out for.
After last week’s batch of negative data we will be hoping for some positive news to come out over the course of this week to potentially give sterling a slight boost. Starting at 9.30 this morning we have industrial and manufacturing data along with our Trade balance figures. Looking closely at the figures we are expecting a decline over all sectors. However if the figures come out better than what is expected we may see a boost for sterling exchange rates.
Following these reports we then have a GDP estimate for the last three months by the NIESR (National institute of Economic & Social research) which will be released in the afternoon. This report is different to the official ONS (Office for National Statistics) GDP figures but can still cause the pound to significantly strengthen or weaken. I would be very wary around the decision and if you have a currency requirement to carry out you may be wise to look at securing your currency in between the morning and afternoons data. You may contact me at [email protected] if you require sending money overseas and are looking to make a saving over your bank or any other broker that you are currently using.
World Bank’s Comments boost the USD
The IMF seem to be echoing comments by the world bank. They they lowered their 2012 growth forecast for the world’s second largest economy China. The international lender estimates that economic activity in China will expand by 7.7%, as opposed to its previous estimate that GDP would grow by 8.2% this year. Although these figures are far greater than any western economy the decline in their GDP is a concern.
This has caused the USD to significantly strengthen against a range of currencies as investors have once again fled to the Dollar as the safe haven of choice. In fact the USD has now strengthened to its best level against the pound in a month.
Yesterday was a bank holiday in the states and today there is no data to note. However tomorrow could be key for those with a Dollar requirement. After trading closes in the UK there will be a release of the Fed’s Beige book. This is a report on the current US economic climate. Recently the data to come out of the US has been very positive with growth in many sectors.
A limit or maybe more importantly a stop loss order may be wise as our lines will be closed during this release. I personally feel that over the course of this month the pound will be trading in the late 1.50’s against the USD and if this is a concern for you then you may just want to trade before tomorrow night’s release.
A little about us
All of my clients that have found me through this website started reading our posts purely because they wanted more information regarding exchange rates and how to get a better deal than what their bank would offer them. Myself and my fellow authors at www.poundsterlingforecast.com work for one of the largest currency brokers in the UK. We have been in the industry for a culmination of 39 years so our extensive knowledge is second to none. We strive to make you a saving over all the banks and the savings can be up to 4%.
If you are reading this site and you have a requirement to buy or sell any major currency you must get in contact to see if we can make you a decent saving on your hard earned money. Surely a quick comparison can do you no harm.
If you would like to compare our rates with that of your bank for international transfers please do email me with your details at [email protected] Just address it to Ben and I will come straight back to you.
I look forward to hearing from you.
Ben Amrany
2012-10-09 16:40:21
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