Euro Rate 2010

[Dominic Butcher]

Happy New Year to all the forum members, hope you had an enjoyable festive period! (New Year, new topic I thought)

With a bit of luck the £ will have a similar year to 2009, gaining an average of 8%+ over the year. We have seen a good start for 2010 as Sterling has managed to push the European currency to the mid-1.12's. The £ has been helped by news of the UK manufacturing activity growing at its fastest pace in more than two years in December, a survey has indicated.The Chartered Institute of Purchasing & Supply's purchasing managers' index (PMI) rose to 54.1 from 51.8 in November. (A score above 50 indicates growth.) Some analysts think the increase in the PMI is a sign that 2010 could be a better year for the sector which is obviously beneficial to the economy as a whole.

However, during the festive period the £ did fall to as low as 1.1074 vs the € which should act as a gentle reminder that even though we hope for another year of growth it is more than possible for further dips in value. For example the highest we saw the £ vs. € rate in 2009 was 1.1872

If anyone is completing soon and wants to take advantage of the spike we are seeing please feel free to get in touch on ++44 (0)1296 339811 or dominic@escapecurrency.com
 

[Dominic Butcher]

I hope everyone is keeping well on the forum and hopefully this report might make you feel even better!

For everyone that keeps an eye on the rates I'm sure you would have seen the recent rises. Since the 11th January we have seen a rise of 4 cents for the £ against it's European counterpart. That's obviously great news as it makes any purchases in Europe roughly 4% cheaper. This has mainly come about with a positive Bank of England meeting which actually showed unanimous decisions on the main facets of UK economic policy. This demonstrates a unity on how to move the UK forward which hasn't really been seen that often, also talk of inflation capping interest rates has helped the pound gain strength.

I hope tihs heps but if anyone has any questionsp lease feel free to give me a ring on ++44 (0)1296 339811 or drop me an email at dominic@escapecurrency.com 

[Dominic Butcher]

There has been a mixed week for the UK economy as we have received positive news in the fact that we have exited recession with a 0.1% growth in Gross Domestic Product (GDP). This was much lower than expected so many analysts are still expecting the next 12 -18 months + to be very tough for the UK.

However, we have actually seen the £ continue its recent trend by pushing the € higher. Obviously great news for forum members who need to send funds out to Spain on a regular basis or if they are completing soon. The £ has managed to touch 1.16 and is hovering around there at the moment. Hopefully news from the Bank of England next week with regards to quantitative easing will help the rate go even higher. A lot of anaylsts are expecting the current programme of money being pumped into the economy to be stopped which is good news for the strength of sterling. If they do introduce further asset purchases or leave the door open for it to happen in the future it is more than possible that the £ could tumble back.

In the meantime if anyone has any questions or needs any help just give me a ring on ++44 (0)1296 339811 or drop me an email at dominic@escapecurrency.com and I will be more than happy to spend some time answering any queries you may have.