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By Leigh Smith

This morning Rightmove released their house price index data, showing a month on month fall of 2.2%. This has had an immediate impact on Sterling exchange rates, showing a 0.1% fall against the Canadian Dollar, and 0.25% versus the US Dollar.

By Leigh Smith

Good news this morning for anyone looking to buy US Dollars or Canadian Dollars as Sterling exchange rates have improved across the board this morning.

The main factor influencing the cost of sending money overseas has been a report from credit rating agency Moodys; stating that the UK are in no threat of losing their AAA credit rating. They commented that the UK has a high degree of financeability and debt affordability.

By Leigh Smith

Yesterday, Chancellor of the Exchequer Alistair Darling addressed the House of Commons with his pre-budget report. This was seen to be the main influencer of Sterling exchange rates, and in turn the cost of sending money overseas or selling foreign currency. But what did the report contain?

The main positive seen for the Pound was news that there would be no windfall tax on bank profits, on the back of this alone we saw Sterling rally during the early stages of the report.

However, Darling announced that National Insurance contributions will rise in April 2011, on top of the increase already released in last year’s report. Value Added Tax (VAT) will revert back to 17.5% from January 2010. Banks will be charged a one off 50% tax levy on all bonuses paid out over £25k. These three key policies were all seen as negative measures and heaped pressure on the Pound, even though they look set to raise over £13.5bn for the Government. The problem being this amount will only cover public spending, and not cut the debt deficit.

By Michael Vaughan

Sterling has continued its weak run against the US and Canadian Dollar falling 0.5% against the greenback (USD) and falling over 1% against the loonie (CAD).

Sterling has fallen following the pre-budget report this afternoon in which Alistair Darling outlined his plan for reducing the UK’s current deficit and public spending. He was also forced to admit that the recession in the UK had been worse than he predicted last year and said the economy would shrink by 4.75% in 2009 compared with his Budget estimate in April of 3.5%.

By Leigh Smith

All eyes today will be on the Chancellor’s pre-budget report. Alistair Darling will address the nation and set out out he plans to solve the UK’s debt problem. There is talk of a windfall tax on banker’s bonuses, increasing the rate of capital gains tax to 20%, and a reduction in corporation tax to 25% in the long term to encourage inbound investment from the continent.

Whatever is released today, it is hard to believe that Alistair Darling will come up with a solution that has yet to be thought of. Therefore there is the very real chance we could see the form witnessed this morning, losses for Sterling accross the board, continue throughout the day. It would be worth keeping in touch with one of our award winning brokers to explain how you can protect your rate of exchange.