The main event of the week for the euro was the widely anticipated decision from the European Central Bank (ECB) to cut their interest rates by 0.25 to 1%. As has been the case in recent months, it was as much the accompanying statement and sentiment of the members regarding future actions that drew attention. One member described the cut as ‘appropriate taking into account all available information’ which has been a clue in previous statements that there will be no intended change to this rate for some time. Further action from the ECB involved the purchase of €60bn ‘euro denominated covered bonds’ which will aim to support the mortgage lenders. Finishing the week on the front foot the euro has simply not capitulated as many analysts had predicted would happen at the beginning of the year.
The increase in risk-appetite in the markets has boosted many of the high-yield currencies. The Australian dollar is at its strongest level against sterling in several years and with increasing demand for commodities suggesting this is not likely to change very quickly.
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
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