Currency Rates

EURO/GBP - 1.150
US$/GBP - 1.617
CHF/GBP - 1.692
CAN$/GBP - 1.721
AUS$/GBP - 1.800

Comments: Whilst the UK delivered positive growth for the first time in nearly 2 years, this growth came in disappointingly lower than expected. With forecasts for at least 0.4%, the news that the economy had expanded at 0.1% clearly shows that the economy is struggling to recover at any momentum. After talk of recovery over the last few weeks, investors have to assess the risk of a renewed downturn. It is worth noting that the third quarter figures (which were similarly poor) have been revised upwards ever since their release, so we may see a similar situation here – but that doesn’t help repair the damage done to sentiment surrounding sterling. After dropping by a cent against the euro and US dollar sterling has rallied slightly this morning. Investors will be keeping a keen eye on the CBI’s trade data released today to see what impact poor weather and a VAT hike has on the outlook.

In the Euro zone, German business confidence reached an 18 month high and Greece raised around €8bn in government bonds. However, Greece has had to pay a high interest rate on the debt as it is still seen as a risk. This is at the back of the minds of investors and is compounded by the fact that German inflation data came in a lot worse than expected this morning and still demonstrates the fragility of the recovery and has contributed to the euro’s decline against sterling this morning.

In the USA, all eyes are on the Fed’s interest rate decision. This is expected to remain the same, but the financial markets will be alert to any significant changes in policy at the press release after the announcement. New homes sales data is expected to show a rise, but given the record fall of existing homes in December today’s data may surprise. President Obama delivers the State of the Union address tonight – given his current track record, this has the potential to move markets.

Elsewhere, Japan’s credit rating was downgraded by Standard and Poor’s credit rating agency highlighting the need for the economy to rein in spending and raise taxes. The Australian dollar rose as inflation data came in better than expected.

Remember to minimise the chance of losing money due to adverse movements in the markets by speaking to a currency specialist as early as possible.

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.