Smart Weekly Currency Note - 17th July 2009

Smart Currency Exchange - Weekly Currency Rates

Weekly Currency Interbank Exchange Rates 17th July 2009

Currency Rate Last Week Rate This Week EURO 1.163 1.156 US$ 1.618 1.632 CAN$ 1.884 1.824 AUS$ 2.089 2.038 NZD 2.587 2.539 AED 5.950 5.996 CHF 1.759 1.758 ZAR(Rand) 13.339 13.144 Charles's Thoughts: Sterling continued on what has been a frustrating and rather uneventful past fortnight and traded in a relatively narrow range against most major currencies including the USD and the euro. UK Inflation data at the start of the week indicated only what the Bank of England (BoE) have told us to expect over recent months with the target of 2% being undershot marginally. However, a steep rise in unemployment over the month of June kept sterling under pressure throughout the middle of the week with little else in terms of significant market data releases later on in the week. On Friday the International Monetary Fund (IMF) compounded matters for sterling with comments regarding the vulnerability of the UK economy due to its dependence on the fragile and publicly supported financial sector. Green shoots are simply not enough for sterling at the moment. The US$ lost marginal ground through the week against sterling and the euro, thanks to a mixed bag of market data releases. US industrial production figures disappointed but an improvement in retail sales (largely supported by the recent rise in the price of oil) kept the US$ treading water and minimising losses. This was all in spite of an improvement business sentiment and risk appetite, which would usually see the US$ make more substantial losses, generated by a positive run in global equity markets with most attention going to the surprisingly large profits of companies such as JP Morgan. The Eurozone produced very little significant market data this week other than an inflation report which was much in line with expectation. However, in this quiet week the euro also benefitted from the rise in equity markets worldwide and made modest gains against the US$ and sterling. Industrial output figures for the Eurozone demonstrated a marginal increase on the previous month but there are more noticeable signs of a sustained down-turn for the rest of the year and most of 2010 when studied more broadly. There was no major news in the markets regarding the high-yield and/or commodity backed currencies. 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 (+44 0207 898 0541) 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 (if calling from outside the UK, please use +44 0207 898 0541) web: http://www.SmartCurrencyExchange.com

Smart Currency Exchange | 1 Lyric Square | Hammersmith | London | W6 0NB | UK © 2005-2009 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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