Dear Charles,
Weekly currency note: 2nd December 2005
Overview
Sterling had a good week against the Euro moving back
up to the top of its recent trading range. This of
course happened following an increase in Euro land
interest rates. Just proves that sometimes it is better
to travel than arrive! The US$1.73 level is being tested
but this time from below. May be time to buy either of
these currencies.
Announcement
If you’re interested in buying a property in Cyprus
there is the 1st ever Cyprus Property Exhibit [no entry
cost] at the Alexandra Palace (London) next weekend
(10th & 11th December). On Saturday, the hours are
10am to 8pm and Sunday 10am to 6pm. For more
information call 020 7272 8355 or 0777 159 8933.
I’ll be there along with some other Smart Currency
specialists, so if you’re going to attend, let me know
and we can meet up.
Why is currency management so important?
A two cent movement in either the US$ or the Euro may
seem small but when you have a reasonable amount to change
it can easily add up. If you were changing £100,000 and you
got your timing right then you could gain £1,000 to £2000.
If you have time on your side make sure you develop a currency
strategy and benefit from changes in exchange rates.
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 1.462ish and is currently 1.480ish.
Last week was the time to sell. Now we are heading back to the
top end of the tight trading range and I suspect if you have an
upcoming Euro requirement you should buy sooner rather than later.
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 approaching
the top end 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 1.714.It is now 1.733. As noted, US$1.73ish is a
key level and we wait to see if the US$ breach of this level can
be sustained. As you can see it is being tested.
Further interest rate increases, which may or may not exceed original
predictions, 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 2.333 to
2.315ish The Aus$ is tracking the US$ and 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 2.00 at the start of the week and 2.01 at the end.
The Canadian $ is very strong at the moment. Interest rate rises
in December are being mooted.
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].
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. This would mean a whole new world for
the “loonie” as the Can$ is known. Interesting times.
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
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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!
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