Currency | Rate Last
Week | Rate This
Week | EURO | 1.477 | 1.486 | CY£ | 0.849 | 0.852 | US$ | 1.955 | 1.958 | CAN$ | 2.258 | 2.280 | AUS$ | 2.490 | 2.480 | NZD | 2.840 | 2.783 | CHF | 2.347 | 2.389 | ZAR(Rand) | 13.843 | 13.722 |
Charles's Thoughts: All the very best for a happy and prosperous 2007. I wonder if sterling will be as strong in 2007 as it was in the second half of 2006. Interest rates have been a key support. The belief is that the next interest rate move in 2007 will be up rather than down given inflation and economic performance. It is worth remembering though that sterling has the same problems as the US$ with the UK suffering from large deficits for both balance of payments and budgets. Once interest rates start to fall then we could see a quick fall from grace. The US$ had a torrid year hitting 15 year highs against sterling in December. Everything was against the US$ with interest rate increases being put on pause, a weakening economic performance, the twin deficits as per the UK and a "keenness" for countries such as Russia and China to diversify their reserves out of US$'s. Could 2007 be as bad. Maybe but when the US catches a cold the rest of the world is very susceptible to getting an even worse cold! So don't assume it's a one way bet. The ECB will continue to increase interest rates in the first half of 2007. As such this will lend support to the Euro and as such we could see the Euro push back to 1.45 against sterling. Germany is beginning to move forward and as a major economic power house in the world will have a major influence on the Euro The Canadian $ continues to weaken as it follows the US$. The US is its major export market. The New Zealand dollar is benefiting from high interest rates and the carried trade with the yen. This may be short lived as rates will have to reverse at some stage. Why is Currency Management So Important? The number of clients who booked forward at 1.48 plus was very encouraging. They obviously realised how important it was to eliminate currency risk. And as we stand now they have also gained. So, they have achieved certainty with regard to their costs and they have made a gain against if they had to buy the currency now. Smart Client Testimonial: "Just a quick eMail to Thank You for all your help in transfering the Euro's to Spain for me. An excellent service with helpful staff you have a receipe for success. You treated my amount of money as important as larger sums I am sure you handle. I shall recommend your services to anyone asking." Martin Rowland, London SW1 If you haven't opened a Smart account yet, call me on freephone 0808 153 0102 or fill out our online Account Form at: http://www.smartcurrencyexchange.com/application.htm How much will a Property Cost? To estimate the cost of a property simply DIVIDE the price of the property by the appropriate currency rate noted above. But note this is based on the inter bank rate so the actual cost will be slightly more.
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