Friday, September 01, 2006

Smarts Weekly Currency Note - 1st September 2006

Smart Currency Exchange - Weekly Currency Rates for Overseas Property Buyers
Weekly Currency Interbank Exchange Rates
Currency
Rate Last
Week
Rate This
Week
EURO
1.480
1.484
CY£
0.848
0.852
US$
1.888
1.897
CAN$
2.095
2.098
AUS$
2.474
2.485
NZD
2.964
2.913

CHF

2.341
2.348

ZAR(Rand)

13.088
13.748

Charles's Thoughts: Sterling had a steady week against the Euro and US$. Still close to year highs and the rest of the world seems to be looking at us using rose tinted glasses and seeing a vibrant economy plus high interest rates. Difficult to believe that this is the reality if you live here! We are coming out of the holiday season so trading volumes will pick up.

The US$ is still in its range of 1.88-1.90. We must be into our fourth week of this very narrow trading range and as I have said before it is difficult to determine which direction we will break out but one day we will and I suspect it will be significant. At the very least hedge some of your requirements for dollars.

The Euro was steady. We are pushing at highs which we have approached 6 or 7 times in the last 18 months. Only once have we broken through and that followed the NO vote by France and the Netherlands on the Constitution. An exceptional event. More downside risk than upside potential for sterling vs. the Euro. It seems a good time to buy.

The rand has shown weakness on the back of poor economic figures. If we see a rebound from Gold then we could see a quick reverse. Other high yield currencies have been stable.

Why is Currency Management So Important? Exchange rates never do what you want them to do. The rate is moving in your direction, all economic information seems to indicate that this will continue for the foreseeable future but suddenly (and instantaneously) the market reverses on you. All you see flash before your eyes are £ signs. This is why it is vital to set a budget/target exchange rate which is realistic and grab it when it is available. The rate may continue in your direction but experience has taught me that although annoying for this to happen it is a lot less painful than an actual loss.

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

How much will a Property Cost? To estimate the cost of a property simply DIVIDE the price of the property by the appropriate currency rate noted above.

Smart Currency Exchange Limited

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Disclaimer
Exchange rates can move very quickly. The above rates are valid at a moment in time. We have no crystal ball and we recommend that if an exchange rate works for your budget then don’t wait for an even better exchange rate - Murphy’s Law says the rate will go against you and cause you maximum pain! Suggestions should not be taken as advice or fact.

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