Eurozone GDP figures shortly preceded this week's other important European economic news of an interest rate cut by 0.5% to a new record low for the single currency. However, with the interest rate decision and the GDP figures both coming in as expected, the euro simply maintained a steady value against most major currencies including sterling and the US$. Inflation, or a lack of it, still remains a major concern for the European Central Bank as forecasts suggest that the future months will be running under the target rate of 2%. This will almost certainly lead to further cuts in euro interest rates if correct and will test the euro's resilience in the middle stretch of 2009.
Among the high-yield and/or commodity backed currencies, the Reserve Bank of Australia decided this week to buck the recent global trend of lowering interest rates to instead hold their interest rate at 3.25%. The news was positively received and lead to gains on the following day's trading, and all in spite of recent news that the Australian economy had contracted in the fourth quarter of 2008, the first time it has done so in eight years.
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
