Why did the Euro suddenly lose value against the Pound this week?

November 12th, 2010  

There’s a great deal going on at the moment. The G20 meeting wouldn’t normally gain much of my attention. However, on this occasion, I see the Americans and the Chinese competing to see how far they can throw their toys out of the pram. All because each country accuses the other of deliberately lowering their currency values to help domestic production and exports.

Now picture the Euro zone members gladly catching all of the toys and selling them on Ebay for a reasonable price.

The Euro zone has gained out of other’s squabbling, while managing to hide some dark facts that will loom out of the shadows later on and give anyone in it’s way sufficient concern to run in the opposite direction as quickly as they can.

There’s a bank in Ireland who has debts of around 20% of the gross domestic product, the Portuguese and Spanish economies have been down graded, The Greek economy is hanging on by its fingernails, to mention just a few. In fact the only economy in Europe that seems to be doing well is Germany’s.

Despite all of this negative news, the euro has managed to appear as a better option than the dollar for the investors. The more euros that they have bought, the higher the value has risen.

However, the euro fell from grace against the Pound in the last few days, as it would appear that the governor of the Bank of England has finally woken up to the fact that his statements can actually have a dramatic effect on the Pound’s value. He mentioned that it’s likely that the inflation rate will be persistently above target over the next few years. That was enough to tip the balance for the pound against the euro.

Will the euro stay weak against the pound? Opinion among fx dealers is that the Pound is looking like a better bet in the long term and that the current strength of the pound will be short-lived, but will remain close to the current levels for some time.

FX-Global Currency Exchange News Report

October 20th, 2010  

Daily Foreign global currency exchange News: 19th October, 2010 As we write this morning it is expected by the fx-foreign exchange traders that the European stock markets will open marginally lowers, as market traders have a degree of caution to earnings from some of the top US corporations. As the market closed yesterday, the dollar had [...]

Update on the Euro Rates

October 11th, 2010  

Is this a good time to sell euros and buy pounds or dollars?

Over the last week, the Pound has lost just under 5% of its value against the Euro. It would seem that the US Dollar has fallen out of favour as the “safe haven” currency, and the Euro has become the new darling of the currency world.

In the fragile and fickle world of currency exchange, situations like this rarely remain static for long. The euro has its own problems lurking in the shadows. Spain’s fiscal rating was downgraded, a bank in Ireland has debts equivalent to about 20% of Ireland’s gross domestic product, Portugal has sold government bonds to satisfy debts and Greece is so far in debt, and we have pushed that fact so far under the carpet that we have ceased to notice it any more. So, it’s likely that the euro will start to lose against the euro again soon.

If you are dependant on an income that is derived in Pounds, but you need to change it to Euros before you can use it, then you will be wondering how you can stop these losses from happening to you.

For private individuals, your sterling transfers may be something regular like a monthly pension payment, or part of a wage. For businesses, operating in Spain, but billing some clients in Pounds, 5% can be a large part of your profit.

How can you make sure this doesn’t happen to you in future.

If you make regular transfers from pounds to euros, and you see an exchange rate that suits you. Then you can agree to buy euros at that point, but only pay a 10% deposit. Then, every time you need to make the transfer, you simply pay the currency dealers the amount that you need to transfer on each occasion until the total amount of the currency deal is used up.

Using the current situation where we reached 1.22 just a couple of weeks ago, and the GBP/EUR is about 1.14 now.

For example:

• You have £5000 to change to euros.
• You agree to buy a “time option forward currency contract” at a rate of 1.20.
• You send just £500 to the currency company to hold that rate for an agreed time period. (In this case it’s 9 months.)
• You have then fixed that rate to 1.20 for an amount up to £5000, over a 9 month period and can make any number of transfers until you have used your £5000 limit, or you run out of time.

If the rate then drops to 1.14, as it has, you can sleep at night, safely in the knowledge that your income won’t have just dropped by almost 5%. Using this example, that’s a drop of £250 that you can avoid.

Exactly the same principal applies to businesses that buy goods overseas.

Call FX-ForeignExchange, for an informal chat about how you can stop losing money when making overseas transfers. 0044 (0)1480 458400 or use our “Call Back Form” here.

Euro has fresh doubts cast over its value

September 21st, 2010  

Daily global currency exchange update: 20th September, 2010 We report on the current global currency exchange movements and offer our clients the very best global currency exchange rates available. Our speciality is the ability to offer competitive time option forward currency contract rates. If this is not the most recent daily global currency exchange news report, view the most recent [...]

Technorati Tags: Australian Dollars, buy, euros, pound sterling, sell, swiss franc, us dollars

Dollar falters against other currencies

August 4th, 2010  

The US Dollar has just started to slide in value against other major currencies. Time for action.

If you have USD, this could be the time to sell dollars and buy into GBP, Pounds Sterling, or Euros.

GBP: USD. In May 2010, the USD was worth $1.43 to £1. It was trading this morning a £1.5970 to £1.

 However, the Dollar has started to slide back already. It has lost 2 cents in a week. Good time to sell dollars? Likely!

 

EUR:USD. In december 2009 you could buy €1.50 for every $1. during 2010, the EUR strenghened against the Dollar to around €1.21 to every $1. recently, the dollar has strenghened against the euro to around €1.32 to $1.

Today, it looks like the dollar is weakening.

The main message?

• If you have a large amount of Dollars… do something! If you want to buy your currency ahead of time, you can. With just a 10% deposit, you can fix the usd rate now, and pay the balance at a fixed point in future but keeping the current rate.
• If you want to buy Dollars, talk to one of our currency dealers and they will set a rate at which they will contact you so that you can buy your Dollars at the best price possible.

The easiest way to look at this is; if you need to change your money at some point and you need to achieve a certain amount, then you have these options:

1. Exchange all of your Dollars at today’s rate. This is called a SPOT Contract. It ensures that you fix the rate today and you get your money transferred, to where it needs to be, in good time.
2. Exchange some of your Dollars and risk the exchange rates going in your favour by the time you need to have the rest of the money changed. This is HEDGING in its simplest form. It does mean you can sleep at night, safe in the knowledge that you’ve made sure you don’t lose too much if the rates don’t go your way.
3. Exchange your Dollars, at today’s exchange rate, with just 10% deposit. Then pay the balance when you need the money in the future. This is called a FORWARD Contract. This is the way that most of my clients are now exchanging their money. By paying just a 10% deposit, our clients can relax, safe in the knowledge that they have the right amount of money for their property purchase.

Of course, this doesn’t just apply to Dollars. It applies to any tradeable currencies.

Please contact a dealer here and let them know what you would like to do.

Quote me the best currency exchange rate

1. Your Name(required)
2. Email(valid email required)
3. Daytime contact number(required)
4. Convert from which currency?
5. Convert to which currency?
6. How much would you like to convert
7. Message

 

cforms contact form by delicious:days

Daily currency updates? Please subcribe

August 1st, 2010  

We provide a daily rates of exchange update delivered to your inbox via our feed. If you want to susbcribe to our live bank rates daily update, please enter your email address here:

FX-Foreign Exchange support a NO SPAM policy. You will receive simple unsubscribe instructions on the bottom of every email we send you.

Technorati Tags: daily currency rates updates