The honeymoon period with the new Conservative government is over.
Sterling enjoyed a brief rally this summer, with a 2% rise against a basket of currencies of the UK’s major trading partners and rose around 9 cents to hover just below the USD $1.60 mark.Sterling has managed to perform relatively well because of the inherent weaknesses of other economies; the Euro was held back (the Greek economic crisis) and the US dollar has been suffering against every other major economy in the world as it struggles to shake itself out of the effects of recession.Now...
The UK National Statistics Office has reported that overseas spending by British holiday makers has dropped by 10%. However, at the same time, spending in the UK by foreign tourists has increased by 4%.
The UK was once regarded as the “workshop of the world”, and exports still account for a substantial portion of UK manufacturing and commercial activities today.
Transacting business overseas is a valuable commercial hedge against adverse market conditions at home as well as a mean of providing highly profitable opportunities to generate business growth.
Shop Around for Best Value Currency Exchange When Leaving the UK
The Euro declined yesterday and extended a monthly loss against the Dollar and the Yen. Sterling / Euro and US Dollar exchange rates The Pound surged above 1.62 against the U.S Dollar yesterday, breaking through significant resistance in the region of 1.6170, as a report showed that consumer confidence rose to the highest level since June. The UK currency also proceeded towards the highest level in 20 months versus the Euro, as the report will reduce speculation that the Bank of England will...
Pound to Euro, US Dollar Exchange Rate: The Pound declined against the majors The Pound declined against the majors yesterday, as the market reacted to the news that the UK economy contracted in the first quarter by 0.2% in the preliminary figures released yesterday morning. The -0.2% result has come as a major shock with the market anticipating modest growth of 0.1% following the recent good run of economic data on services and manufacturing. The sharp decline in construction has contributed...
Aside from the Federal Reserve, the Reserve Bank of New Zealand also has a monetary policy announcement this afternoon. The RBNZ is expected to keep rates unchanged - hard to validate a rate hike when the RBA is planning to ease. Also, the last time the RBNZ met, Governor Bollard said “sustained strength in NZD would reduce the need for further increases in the cash rate.” - So it doesn’t look like rate hikes are in the pipeline until there is more evidence of a recovery....
Here’s a table comparing how the US economy has changed since the last FOMC meeting in March. More weakness than strength 4 sure…