Market News Archive

05 July 2010

Foreign Currency Exchange markets react to budget

The new coalition government'™s budget was the primary focus in June and aggressive measures outlined by George Osborne to cut and reduce the huge national debt were welcomed by the financial markets pushing Read more

03 June 2010

Is this the beginning of a sustained recovery for sterling

May was certainly a roller-coaster of a month for the value of sterling. On some days we witnessed exchange rate swings in excess of 2%. To put this into context Read more

05 May 2010

What affect with the election have on currency exchange rates?

Clearly, Thursday's general election is the key factor affecting exchange rates this week and sterling has maintained a steady stance against most major currencies Read more

01 April 2010

What affect did the budget have on currency exchange markets?

Okay I am determined not to turn this currency commentary into political report. However we cannot hide from the fact that as a consequence of a looming general election (latest June) the value of sterling has been under pressure. Why? Well with political uncertainty comes Read more

09 March 2010

Politics affecting currency exchange market

Despite an upward revision of Q4 GDP sterling has lost considerable value against most currencies. The UK economy is estimated to have grown by 0.3% for the 4th quarter compared with Read more

03 February 2010

Pound hits five month high in currency exchange markets

Whilst the Christmas champagne may be a little flat by now, we learned a couple of weeks ago that the UK is finally out of recession, which might be Read more

12 January 2010

How has Sterling performed in foreign currency market

The final figure for Q3 GDP was released in December and unfortunately for sterling the UK economy contracted -0.2% causing the pound to weaken on the day. The market expectation Read more

01 December 2009

Foreign currency market update

Whilst the UK is the last remaining major economy still in recession the latest figures show GDP contracted by 0.3% which is 0.1% less than first thought. Also, earlier in the month Bank of England kept interest rates on hold at 0.5% and introduced an additional Read more

03 November 2009

Sterling ranges in Foreign Currency Exchange markets

October was a mixed bag for sterling as reports early in the month suggested a weak pound in the run-up to Christmas with the Telegraph talking about Read more

05 October 2009

How long will sterling remain weak in currency exchange markets?

If we are to believe recent business surveys then the recession in the UK appears to be coming to an end, and most economists are predicting modest growth in Q3. As you will be aware the Bank of England Read more

07 September 2009

Sterling makes (small) comeback in Foreign Currency Market

This first week of September has seen sterling claw back some of the losses sustained in August. Unfortunately, the pound weakened sharply early last month following an announcement from the BoE (Bank of England) that Read more

14 August 2009

GBP currency exchange rates effect of recession

In our last report monthly report we mentioned the recession in UK could be W rather than V shaped, which I know is a little technical but this will effect the value of sterling in the currency exchange markets. For example last week Read more

16 June 2009

Currency Exchange '“ Kaka's Transfer Makes Waves in Currency Exchange Markets

Brazilian footballing hero, Kaka, recently transferred to Real Madrid for an astronomical £56m and there was indecision as to whether this represented a record fee due to the currency exchange market. The pounds strength in the currency exchange market has dropped since the previous record transfer of Zidane. Read more

11 June 2009

Foreign Currency '“ Pound Improves on Back of Housing Market

The strength and weakness of a currency is invariably intrinsically linked to the strength of their property market and recent positive signs surrounding the UK property market has given sterling a boost in the foreign currency exchange markets. Read more

03 June 2009

Large gains for sterling in the Foreign Currency Exchange markets

The last time I wrote a currency exchange market commentary there was a vast amount of doom and gloom in the media about how poor the UK economy was. Now we have the reverse and the Governor of the Bank of England, along with other MPC Members, are trying to dampen down expectations that we are seeing signs of a recovery. Read more

28 May 2009

Property Investment in Central and Eastern Europe hit by Foreign Currency Fluctuations

It goes without saying that foreign currency fluctuations have had an impact on most markets and the same is true of the previously thriving property investment market in central and eastern Europe. Speaking to experts is the best way to be aware of foreign exchange fluctuations. Read more

11 May 2009

Looking at the Pretenders to the Throne in the Foreign Exchange Market

The American dollar has long been considered one of the fundamental cornerstones of the foreign currency exchange market but its position has slipped of late and other currencies are beginning to stake their claim to be foreign currency top dog. Read more

04 May 2009

Postive housing data pushes sterling higher in currency exchange market

April was another roller-coaster month in the currency exchange market where we saw 3 month highs for sterling against both the euro and US dollar following positive economic data from the housing market. Read more

27 April 2009

Pound Reaches 3 Month High on Currency Exchange Market

Those in the UK have long been awaiting positive steps for the pound in the currency exchange market and after it was predicted that house prices were beginning to level out, the pound experienced a 3 month high in the foreign currency market on April 15th, 2009. Read more

06 April 2009

Foreign Currency Exchange: Brits Looking to Sell their Homes Abroad

It has been impossible not to notice the comparative strength of the euro in the current foreign currency exchange market. According to a report on This is Money, many Brits owning homes abroad will aim to cash in on the euro's strength by selling the properties abroad. Read more

06 April 2009

Foreign Currency: The Dollar Going No Where Fast

Foreign currency is, of course, very much in the public eye at present given the state of the economy on a global scale. Recent suggestions emanating from China for a global currency have been met with a lukewarm reception in foreign currency circles. Read more

06 April 2009

Is the smart money on Slovakia in the foreign exchange market?

Given the current state of the economy, savvy investors are looking for new locations which may represent a good prospect in relation to the foreign exchange market. Slovakia may be one such location according to a report on This is Money. Read more

31 March 2009

Foreign currency exchange potential reaction to G20

Okay so we are all aware the UK is currently in recession, the question everyone wants to know is how bad and long it will be? If we are to believe the International Monetary Fund (IMF) then Read more

02 March 2009

How will the latest measures affect foreign currency markets?

As expected the BoE (Bank of England) reduced interest rates by 50 basis points early February and many economists predict a further reduction of 25-50 basis points in the coming months. The base rate is now at 1%, a new record low. Read more

02 February 2009

Will low interest rates affect currency markets?

Writing these reports does sometimes feel like deja vu in the sense that the Bank of England (BoE) made history again last month. This time cutting the base rate by 50bps to 1.5%, which is the lowest level since the Bank was established 315 years ago. Read more

01 January 2009

Has sterling been oversold?

As expected the Bank of England (BoE) slashed interest rates again in December following a 1.5% cut in November. The Monetary Policy Committee (MPC) agreed on a further 1% cut reducing the UK base rate to 2%. Sterling suffered some big losses following the cut recording new lows against both Read more

01 December 2008

Bank of England surprises currency markets?

In our commentary last month we indicated that the Bank of England may cut the base interest rate more aggressively than the 50bps forecast and indeed they did. However what we did not see coming was the announcement of a 150bps cut, and I hasten to add nor did the majority of market analysts. This pushed UK interest rates to 3%, their lowest level since 1955 Read more

02 November 2008

Foreign currency roller-coaster

It has been another roller-coaster month for sterling as GDP data released showed that the UK economy contracted by 0.5% in Q3 compared with the previous quarter. This is the first contraction since Q2 1992 and the biggest quarterly fall since Q4 1990. Read more

01 October 2008

Pound holds up well in currency market

It is fair to say recent market events have completely overshadowed economic data releases. It all started with the failure of Lehman Brothers and the Fed having to prop up insurance giant AIG. Then HBOS, the UK's largest mortgage lender was forced to be bought by Lloyds TSB following aggressive short selling of HBOS shares. Subsequently, Read more

31 August 2008

Foreign exchange market overview

As expected, the Bank of England left interest rates on hold this week and we will have to wait two weeks to find out how they voted and whether the committee remained split on their decision. Last month seven of the nine members voted to keep rates on hold with one member voting for a cut and one for a hike. Mervyn King, Governor of the Bank of England has also spoken about the Read more

31 July 2008

Foreign currency exchange market braces for UK interest rate cuts

The Bank of England has a tough task to steer the UK economy through these choppy waters. This month the Monetary Policy Committee (MPC) felt that despite high inflation, interest rates should remain at 5%. The minutes of the meeting show this was not a straight forward decision... Read more

30 June 2008

Pure FX - Foreign Exchange Market Commentary - June 2008

The Bank of England (BoE) is in a difficult position with inflation set to accelerate towards 4% in the coming months, and economic growth slowing. Rising inflation would usually lead to the BoE increasing interest rates whilst they would normally be cut to stimulate economic growth. Read more

30 May 2008

Pure FX - Foreign Exchange Market Commentary - May 2008

I think it would be fair to say that one of the main economic factors recently has been the ever increasing price of oil. Why should this affect currency values? Well at the moment in the UK our economy is slowing but inflation remains above the 2% target, which is mainly down to high food and energy prices. Read more

30 April 2008

Pure FX - Foreign Exchange Market Overview - April 2008

Sterling has continued to struggle this month and given recent economic data it is difficult to see which sector will provide the UK currency with the support that it needs. Interest rates were cut by 25 basis points earlier in the month with MPC voting split three ways, although so far the banks have been unwilling to pass this reduction onto consumers. Read more

31 March 2008

Pure FX - Foreign Exchange Market Overview - March 2008

It has been an interesting month and sterling remains under pressure. The Bank of England voted to keep interest rates on hold at 5.25%. This was forecast, however the minutes indicate a cut in interest rates is just around the corner. Another major factor to sterling weakness was speculation that HBOS was in a precarious financial position. Read more

29 February 2008

Pure FX - Foreign Exchange Market Overview - February 2008

Underlying confidence has remained fragile this month with persistent unease over the financial sector. The nine members of the Bank of England'™s (BoE) Monetary Policy Committee (MPC) voted unanimously for a rate cut with one member, David Blanchflower voting for a 50 basis point reduction. Read more

31 January 2008

Pure FX - Foreign Exchange Market Overview - January 2008

It has been an interesting month for economic news and since Christmas sterling has been under pressure, caused mainly by the credit crunch in the US, continuing issues with Northern Rock and whether the wider UK economy will begin to suffer as a consequence. One of the first main economic indicators for the New Year was news that the Bank of England decided to keep interest rates on hold. Read more