Smart Weekly Currency Note - 7th November 2008

Smart Currency Exchange - Weekly Currency Rates for Overseas Property Buyers

Weekly Currency Interbank Exchange Rates 7th November 2008

Currency Rate Last Week Rate This Week EURO 1.271 1.234 US$ 1.618 1.577 CAN$ 1.956 1.866 AUS$ 2.449 2.345 NZD 2.784 2.675 AED 5.945 5.794 CHF 1.879 1.854 ZAR(Rand) 15.810 16.044 Charles's Thoughts:  The Bank of England's move to slash interest rates in the UK this week from 4.5% to 3% was surprisingly well received by the markets and it is hoped the decision will shock the flagging UK economy back into life. Despite rates being at their lowest for 53 years, there were suggestions following the announcement that further cuts may be on the cards in the early part of the new-year. Much of this speculation is owing to the fear of inflation coming in under the Bank of England's targeted 2% in the coming months. However despite the news of the aggressive cut in rates being seen as a positive move for the UK economy, sterling fell to new record lows against the euro on Friday morning and closed the week marginally lower against the US$. The economy was sited as the main factor behind how the US electorate voted this week, according to exit polls. So having made history by electing Barack Obama as the new 'leader of the free world' the pressure from the American public will undoubtedly mount for the new president elect for a clear plan of action for steering the US out of the financial crisis. A slight shift to the left politically in a time where de-regulation has been largely blamed for the global economic crisis should be something as a positive for Senator Obama. However, consistently grim US market data and low consumer confidence will test the performance of the US$ which has drawn so much strength from the investors seeking risk aversion and for having to return funds home. The European Central Bank also cut their rates this week. A rather more conservative cut of half a percent to 3.25% that was largely expected did little in terms of market movement for the euro. Concerns parallel to those of the UK regarding the potential undershooting of inflation targets have left some to speculate that rates could well be reduced further in the next few months. The Reserve Bank of Australia also made a larger than expected cut in interest rates this week. Cutting from 6% to 5.25% the markets' reaction was positive enough to see the Australian dollar strengthen against most major currencies in the immediate aftermath. However, the commodity backed and/or high yield currencies in general have continued their trend to weaken along with the worldwide demand for commodities. 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 transactions go so smoothly. As promised, our account was opened within hours. Your traders were pleasant and efficient, and each transaction was very much at the exchange rate I expected...ie 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 rate noted above. But note this is based on the inter bank rate so the actual cost will be slightly more. Charles Purdy Smart Resources Currency Strategy Worksheet Need help creating a Currency Strategy? Download our Currency Strategy Worksheet: http://www.smartcurrencyexchange.com/downloads/CurrencyStrategyWorksheet.pdf Currency Report Have your read our 10-page Currency Report that outlines the top 3 mistakes that overseas buyers make when exchanging and transferring their money overseas? Get the report here: http://www.SmartCurrencyExchange.com/downloads/ThreeMistakes.pdf Currency Quotation Are you interested in a currency rate for Euros, US$'s, CYP, NZD, or any other currency, please fill out our Smart quotation form at: http://www.SmartCurrencyExchange.com/smartquotation.htm Smart Currency Exchange Limited

email: Charles@SmartCurrencyExchange.com free phone: 0808 163 0102 web: http://www.SmartCurrencyExchange.com

Smart Currency Exchange | 1 Hammersmith Grove | Hammersmith | London | W6 0NB | UK © 2005-2008 Copyright  Smart Currency Exchange Ltd THIS PUBLICATION DOES NOT CONSTITUTE ADVICE WITHIN THE TERMS OF THE FINANCIAL SERVICES ACT (OR ANY SUBSEQUENT REVISIONS, ADDITIONS, OR AMENDMENTS). Disclaimer Exchange rates can move very quickly. The above rates are the interbank rates and valid at a moment in time. The interbank rate is the rate at which the banks deal with each other in the foreign exchange markets. Suggestions should not be taken as advice or fact. The market does what it wants to do.  We have no crystal ball and as ever we suggest that if an exchange rate works for your budget then don't try and wait for an even better exchange rate, as Murphy's Law says the rate will go against you and cause you maximum trouble!

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Smart Daily Currency Note - 7th November 2008

Smart Currency Exchange - Daily Currency Rates for Overseas Property Buyers

Free Daily Inter Bank Currency Exchange Rates 7th November 2008

Currency Rate EURO 1.230 US$ 1.579 CHF 1.848 CAN$ 1.882 AUS$ 2.354 Comments:  A shock cut of 1.5% in interest rates from the Bank of England yesterday saw sterling wobble briefly but then recover to just above its opening levels against the euro and the US$. The move to bring rates to their lowest levels in 53 years, with many expecting a cut of either half or three quarters of a percent, drew surprisingly little reaction from the markets. Since the general rule of thumb would be to see sterling weaken off the back of an aggressive cut in rates, the fact that the markets reaction was to the contrary and somewhat muted gave further testimony to the chaos and uncertainty of global markets. However, the pound is still in near-record low territory against the euro and losing ground against the US$. We await non-farm payroll figures to be released later today in America which will give guidance on how the US economy is doing and how difficult a job Barrack Obama has taken on. Note:  All rates are mid market inter bank and indicative at the point of publication.  To get an initial estimate of the cost of a property simply DIVIDE the price of the property by the appropriate currency rate noted above.

email: Charles@SmartCurrencyExchange.com free phone: 0808 163 0102 web: http://www.SmartCurrencyExchange.com

Smart Currency Exchange | 1 Hammersmith Grove | Hammersmith | London | W6 0NB | UK © 2005-2008 Copyright  Smart Currency Exchange Ltd THIS PUBLICATION DOES NOT CONSTITUTE ADVICE WITHIN THE TERMS OF THE FINANCIAL SERVICES ACT (OR ANY SUBSEQUENT REVISIONS, ADDITIONS, OR AMENDMENTS). Disclaimer Exchange rates can move very quickly. The above rates are valid at a moment in time. Suggestions should not be taken as advice or fact. The market does what it wants to do.  We have no crystal ball and as ever we recommend that if an exchange rate works for your budget then don't try and wait for an even better exchange rate, as Murphy's Law says the rate will go against you and cause you maximum pain!

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GB


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Smart Daily Currency Note - 6th November 2008

Smart Currency Exchange - Daily Currency Rates for Overseas Property Buyers

Free Daily Inter Bank Currency Exchange Rates 6th November 2008

Currency Rate EURO 1.233 US$ 1.593 CHF 1.857 CAN$ 1.866 AUS$ 2.343 Comments:  Following a day of mixed market data yesterday, sterling closed relatively unchanged against the euro and marginally up on the US$. The mixed UK data consisted of weak - but no weaker than expected, industrial production figures, disappointing manufacturing production figures but higher consumer confidence for the month of October than was previously expected. The rule book is out at the moment and standard market reaction to events such as an interest rate cut does not have the usually predictable outcome of weakening the respective currency. The market is perhaps more concerned with future growth rates and so as with the Australian dollar earlier in the week, a cut from the Bank of England today could well provide a much needed boost for the pound. Note:  All rates are mid market inter bank and indicative at the point of publication.  To get an initial estimate of the cost of a property simply DIVIDE the price of the property by the appropriate currency rate noted above.

email: Charles@SmartCurrencyExchange.com free phone: 0808 163 0102 web: http://www.SmartCurrencyExchange.com

Smart Currency Exchange | 1 Hammersmith Grove | Hammersmith | London | W6 0NB | UK © 2005-2008 Copyright  Smart Currency Exchange Ltd THIS PUBLICATION DOES NOT CONSTITUTE ADVICE WITHIN THE TERMS OF THE FINANCIAL SERVICES ACT (OR ANY SUBSEQUENT REVISIONS, ADDITIONS, OR AMENDMENTS). Disclaimer Exchange rates can move very quickly. The above rates are valid at a moment in time. Suggestions should not be taken as advice or fact. The market does what it wants to do.  We have no crystal ball and as ever we recommend that if an exchange rate works for your budget then don't try and wait for an even better exchange rate, as Murphy's Law says the rate will go against you and cause you maximum pain!

---

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Smart Daily Currency Note - 5th November 2008

Smart Currency Exchange - Daily Currency Rates for Overseas Property Buyers

Free Daily Inter Bank Currency Exchange Rates 5th November 2008

Currency Rate EURO 1.231 US$ 1.580 CHF 1.844 CAN$ 1.836 AUS$ 2.300 Comments:  The build up to the US election seems to have drawn attention from consistently weak US market data and although the US$ fell marginally against the pound and the euro, the US$ is still showing strength. Reactions to the results of the election and the direct implications on the US$ may not show on the markets instantly but the policies installed by the new 'leader of the free world' will be scrutinised over the first 100 days in office. Against the euro Sterling fell further still yesterday and came close to hitting its all time low of earlier this year. There is a growing sense of anticipation towards the meeting of the members of the Bank of England on Thursday and anything less than a half percent cut in interest rates could well be seen as an under-reaction to the steep down-turn in UK productivity. The Reserve Bank of Australia made a larger than expected cut of three quarters of a percent in interest rates on Tuesday Morning which has lifted the Australian dollar against most currencies as the move was seen as a necessary action to limit the effects of a pending recession. Note:  All rates are mid market inter bank and indicative at the point of publication.  To get an initial estimate of the cost of a property simply DIVIDE the price of the property by the appropriate currency rate noted above.

email: Charles@SmartCurrencyExchange.com free phone: 0808 163 0102 web: http://www.SmartCurrencyExchange.com

Smart Currency Exchange | 1 Hammersmith Grove | Hammersmith | London | W6 0NB | UK © 2005-2008 Copyright  Smart Currency Exchange Ltd THIS PUBLICATION DOES NOT CONSTITUTE ADVICE WITHIN THE TERMS OF THE FINANCIAL SERVICES ACT (OR ANY SUBSEQUENT REVISIONS, ADDITIONS, OR AMENDMENTS). Disclaimer Exchange rates can move very quickly. The above rates are valid at a moment in time. Suggestions should not be taken as advice or fact. The market does what it wants to do.  We have no crystal ball and as ever we recommend that if an exchange rate works for your budget then don't try and wait for an even better exchange rate, as Murphy's Law says the rate will go against you and cause you maximum pain!

---

SCE/OGC

1 Hammersmith Grove
London, London
W6 0NB
GB


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Smart Daily Currency Note - 4th November 2008

Smart Currency Exchange - Daily Currency Rates for Overseas Property Buyers

Free Daily Inter Bank Currency Exchange Rates 4th November 2008

Currency Rate EURO 1.243 US$ 1.578 CHF 1.849 CAN$ 1.868 AUS$ 2.340 Comments:  Reports to suggest that the UK and its economy will be among the worst affected by the credit crisis weakened sterling against almost all major currencies yesterday. Sterling closed more than 2% lower against the euro and ever closer to new record lows. Sterling also closed around 3% down against the US$. This was in spite of poor US economic manufacturing data which showed demand falling further over the month of October. There is growing speculation that the Bank of England may well be looking to cut interest rates by a full 1 % on Thursday and this has been another factor in seeing sterling losing ground. Note:  All rates are mid market inter bank and indicative at the point of publication.  To get an initial estimate of the cost of a property simply DIVIDE the price of the property by the appropriate currency rate noted above.

email: Charles@SmartCurrencyExchange.com free phone: 0808 163 0102 web: http://www.SmartCurrencyExchange.com

Smart Currency Exchange | 1 Hammersmith Grove | Hammersmith | London | W6 0NB | UK © 2005-2008 Copyright  Smart Currency Exchange Ltd THIS PUBLICATION DOES NOT CONSTITUTE ADVICE WITHIN THE TERMS OF THE FINANCIAL SERVICES ACT (OR ANY SUBSEQUENT REVISIONS, ADDITIONS, OR AMENDMENTS). Disclaimer Exchange rates can move very quickly. The above rates are valid at a moment in time. Suggestions should not be taken as advice or fact. The market does what it wants to do.  We have no crystal ball and as ever we recommend that if an exchange rate works for your budget then don't try and wait for an even better exchange rate, as Murphy's Law says the rate will go against you and cause you maximum pain!

---

SCE/OGC

1 Hammersmith Grove
London, London
W6 0NB
GB


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