Currency Rates
EURO/GBP - 1.149
US$/GBP - 1.616
CHF/GBP - 1.693
CAN$/GBP - 1.698
AUS$/GBP - 1.776
Comments: Sterling rose yesterday again and breached the €1.15/£1 level for the first time since August as unemployment figures came in far better than expectations. The number of unemployment claims dropped by 15,000 against an expected drop of 3,000 and the rate of employment unexpectedly dropped to 7.8%. This was clearly positive, but the markets were digesting a speech from Mervyn King in which the governor outlined that he expected inflation to rise well beyond 3% and then drop off as the economy expands. Whilst the data is encouraging, it is clear following the release of the minutes of the last Bank of England meeting that the Bank will look to take a steady approach and complete the emergency funding plan before looking at rate rises.
German service and manufacturing data improved very slightly this morning, but this was the lowest rise since this measure returned to positive last year and as a result demonstrates that the Euro zone recovery is faltering. Similar news is expected from other economies in the region and this will continue to weaken the euro.
The US dollar is expected to strengthen as investors look for safer assets as China’s growth and inflation came in higher than expected. This raised concerns that the country would look to tighten monetary policy to curb a potential bubble. This is clearly a worry for those with riskier investments, and adds to demand for the traditionally safe US dollar.
Elsewhere, Australian motor vehicles sales increased by 17% since last year further raising expectations of an interest rate hike in the next Australian central bank meeting. In New Zealand, retail sales came in 0.8% higher for December beating analysts expectations. As a result this is expected to see both currencies strengthen.
Note: All rates are mid market inter bank and indicative at the point of publication.
To get an initial estimate of the cost of a property simply DIVIDE the price of the property by the appropriate currency rate noted above.
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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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