Dear Charles,
Weekly currency note:11th November 2005
Overview
Sterling strengthened slightly against the Euro but
weakened further against the US$. The Euro has moved to
the top end of its recent tight range and may well
represent a buying opportunity. The US$ is testing 1.73.
If this is breached we could see a lot lower very
quickly.
Why is currency management so important?
If you had bought US$100,000 at the beginning of September
at 1.85ish it would have cost you £54,054. If you bought
it today it would cost you nearly £3,500 more.
What else could you have done with that £3,500? It pays
for a lot of flights to the US.
That is why a currency strategy is so important. It removes
all the risk, the stress and the strain. You know exactly
what amount you need in sterling. The figure will not change.
No more sleepless nights..
Open an account today by calling me on 0870 285 0364 or fill
out our online quotation form
at: http://www.smartcurrencyexchange.com/smartquotation.htm
The Euro vs. the £
The Euro started the week at 1.481ish and is currently 1.485ish.
There are no obvious reasons for this week’s strength and it
may well prove to be an excellent buying opportunity.
As noted previously, there has been no clear trend in the
Euro/sterling exchange rate for the last few months - just a
broad trading range of 1.44 to 1.50. This range has tightened
in the last few weeks to 1.46 to 1.485. We are now at the top
of this range.
Just so you know, currencies such as the Cypriot £ and the
Hungarian Forint, which are planning to move to the Euro in
due course, are closely aligned to the Euro. Therefore they
tend to “track” the Euro. Sometimes they do have a life of
their own but they do tend to come back into line sooner
rather than later.
If you need to BUY or SELL EUROS now is a good time to discuss
your options, so call me on 0870 285 0364 or fill out our online
quotation
form at: http://www.smartcurrencyexchange.com/smartquotation.htm
The US$ vs. the £
Last week it was 1.750.It is now 1.739. US$1.73ish is a key level
and we wait to see if the US$ can breach this level. It made a
couple of half hearted attempts to do so during the week.
Further interest rate increases, which are now expected to exceed
original predictions given the high level of inflation in the USA,
are lending further support to the US$. However, we still have to
be wary as the twin deficits of budget and the balance of payments
[which is still growing] as these mean that the USA is very
dependent on external parties buying dollars.
Momentum, purchasing parity and rising interest rates support my
inclination for further strengthening in the US$ but I could be
very wrong.
The Dirham and the US$ are closely tied. Therefore as the US$ moves
so does the Dirham.
If you need to BUY or SELL USD, call me on 0870 285 0364 to discuss
your options or fill out our online quotation form
at: http://www.smartcurrencyexchange.com/smartquotation.htm
The Aus $ vs. the £
The Aus$ has strengthened slightly over the week from 2.387 to
2.375ish Overall the Aus $ still appears to be in a strengthening
trend.
Although the negative sentiment surrounding the Aus$ has increased
in recent weeks it is likely to take its lead from the US$. A
retesting of the 2.27 level seen in July could be on the cards.
If you need to BUY or SELL Australian Dollars, call me on
0870 285 0364 to discuss your options or or fill out our
online quotation form
at: http://www.smartcurrencyexchange.com/smartquotation.htm
The Can$ vs. the £
The Can$ was 2.07 at the start of the week to 2.07 at the end.
Minimal action as per last week.
The Can$ is very strong at the moment. Justifiably so as the economy
seems to be booming and its commodities are in much demand [and I
talk to a lot of people who are emigrating to Canada]. Interest rates
may be increased to combat inflation lending further support to the
Can$. They also have a positive balance of payments as opposed to
the USA and Australia.
The current level “is very significant” and for the Can$ to strengthen
further will take some effort. However, if it does so then we could
see a very rapid appreciation.
History would still favour a return in the Can$ to 2.20 plus but
timescales are difficult if not impossible to estimate!
If you need to BUY or SELL Canadian Dollars, call me on 0870 285 0364
to discuss your options or fill out our online quotation form
at: http://www.smartcurrencyexchange.com/smartquotation.htm
If you would like to discuss a currency not mentioned in this note,
the latest movements, secure an exchange rate or discuss your
particular situation, please feel free to contact me on 0870 285 0364
Lastly, we’re always working to improve the service provided by
Smart Currency Exchange, so if I can produce information in a
better format or make it easier to understand, of if you want
me to clarify what a particular term means, please send me your
questions, suggestions and/or comments
to Charles@SmartCurrencyExchange.com
Think Smart,
Charles Purdy
Director
Phone: 0870 285 0364
Fax: 0870 285 0365
http://www.SmartCurrencyExchange.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
“The UK’s 1st (and Only) Currency Exchange Service Dedicated
Exclusively to Overseas Property Buyers”
To get your complimentary reports go to:
www.SmartCurrencyExchange.com/freereport.htm
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Disclaimer
As ever these are my musing as to how I see the various markets
going. They should not be taken as fact. The market does what it
wants to do. I have no crystal ball and as ever I 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!
If you no longer wish to receive communication from us:
http://autocontactor.com/app/r.asp?ID=46056571&ARID=120377
To update your contact information:
http://autocontactor.com/app/r.asp?c=1&ID=46056571
No comments:
Post a Comment