| Currency | Rate Last
Week | Rate This
Week | | EURO | 1.261 | 1.257 | | US$ | 1.949 | 1.951 | | CAN$ | 1.962 | 1.945 | | AUS$ | 2.070 | 2.050 | | NZD | 2.541 | 2.533 | | AED | 7.156 | 7.169 | | CHF | 2.032 | 2.053 | | ZAR(Rand) | 15.058 | 14.641 | Charles's Thoughts: Steady week for sterling. This was even after the doom and gloom of the Bank of England's economic forecast which showed increasing inflation and slower economic growth. The worst result possible. The effect of high inflation is that interest rate cuts become less likely. The market feels that we will see only two further 0.25% cuts this year which is hardly going to get the economy moving into overdrive. But at least it makes it clear to everyone the depths of the problems that exist and sterling can only move forward once this is clear to all. The US$ had a steady week as well. Economic news was not great as US production for April was worse than forecast. The feeling/hope in the market is that growth to the US economy will return in the second half of the year. Interest rates were cut aggressively by the Fed in the first part of this year and no further cuts are planned for this year. So we wait to see if the forecast make sense. I suspect not but unless there is a further major hick up in the financial system the worst may be over. Mixed economic news for the €. The German economy continues to move forward strongly whereas the Spanish economy has hit the buffers. Also inflation continued to be at the high end of the European Central Banks target. As such any cuts in Euro land interest rates in this current year are thought to be very unlikely. However, economic problems will increase as the year continues, which may well reduce inflation and then Euro land interest rates would be reduced. However, this is not going to be the short term scenario. So no significant weakness for the € short term. The commodity boom continues and this coupled with the twin UK problems of slowing growth and high inflation meant that the commodity backed currencies gained ground against sterling. Why is Currency Management So Important? Using a bank could cost you £3-4,000 per £100,000 transferred. Buying at the "wrong" time could cost you many £'000's more as rates can move as much as 3% in a very short period of time. Then add in transfer costs that the banks charge for sending and receiving funds and you could be looking at additional costs of £10,000 per £100,000 transferred. By developing a currency strategy and by working with a specialist currency broker these losses could be minimised if not eliminated. Smart Client Testimonial: "Thank you for making our currency transactions go so smoothly. As promised, our account was opened within hours. Your trading team were pleasant and efficient, and each transaction was very much at the exchange rate I expected...ie much better than the tourist rate, not a million miles away from the inter-bank rates and certainly much better than my high street bank could quote. All in all, an easy experience and we will have absolutely no hesitation in recommending your services to any of our friends buying property abroad." Ian Pritchard If you haven't opened a Smart account yet, call me on freephone 0808 163 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. 
Charles Purdy
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