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By ASP

Any one with a Sterling exchange requirement should be keeping a keen eye out for the release of the BoE minutes today at 9:30 which is likely to be pivotal to Sterling strength or weakness in the short term. Even though there hasn’t been and interest rate hike and we are unlikely to see one this year my focus would be on the BoE stance on Quantative Easing. QE is now backed by some as the only stimulus package that hasn’t been fully explored in the UK.

To discuss your requirment and how you can limit your exposure to sporadic market movements please contact me on asp@currencies.co.uk

By ASP

The Eurozone outlook has worsened today as Italy has had its credit rating cut by Standard and Poor’s (S+P). S&P cut Italy’s rating by 1 from A to A+ and stated the reason for the downgrade was the “negative” outlook for the country admidst fears over its ability to reduce state spending. This a long with poor growth outlooks has shaken investors confidence and i’m sure the full affects are still to be felt over the coming weeks. If you are looking at buying or selling Euros currently it has never been more important to speak with an expert. Greece has the possibility of defaulting on its debt soon however if the IMF release the next tranche of the Greek bailout it is likely to cause more Euro strength.

To find out what contracts are available to you to minimise your currency exposure and ensure you get the best rate of exchange please feel free to contact me on asp@currencies.co.uk

By ASP

The Bank of England, ECB, Federal Reserve, Bank of Japan and Swiss National Bank have all agreed to offer unlimited dollar liquidity to the failing European banks. This kind of offering will obviously cause large movement on the currency markets in the short term however my real fear is the cost this pledge will have to trading levels on non EUR pairs. For example analysts predict GBP/USD rate is likely to be pushed to 1.55 and in my mind could even be pushed to 1.50 over the coming weeks.

If you have any upcoming USD requirements and want to protect yourself from adverse currency movements please contact me on asp@currencies.co.uk to discuss how forward contracts and limit orders could cover your risk.

By ASP

This week we have seen poor data for the pound and this continued yesterday when we saw worse than expected retail figures. These figures showed no growth year on year and backs up all the other evidence of poor growth, high inflation and higher unemployment. I expect to see this trend of poor data continue as we have the Nationwide release of UK consumer confidence on Monday. With all of this poor data I find it very hard to beleive consumer confidence will have increased and with public sector strikes planned for later this year it is looking very bleak for the UK.

By ASP

UK unemployment rose by 80,000 to 2.51 million from the 3 months to July. Critics have been saying that the government’s plan to but spending instead of borrow isn’t going to solve the problems facing the UK. I personally feel the only option to get the UK growth moving is for the Bank of England to stand in and push another round of QE. Although it will cause weakness in the short term, with the weaknses in the Eurozone i feel we will be much better off as a result. I’m keen to get your feedback, to give me your thoughts please contact me on asp@currencies.co.uk