Brexit – Sterling down US Dollar continues upward

In a recent blog article from Currencies4You, Brexit fears weighed heavily on the Pound last week, while the US Dollar went up again.

Currently 1 UK Pound = 1.39 dollars.

MAJOR CURRENCIES IN DETAIL:

GBP – With the date for the EU referendum now firmly set, Brexit concerns remain the main driver for Sterling. Boris Johnson and other prominent Tory leaders broke off with David Cameron’s campaign for the UK to stay in the EU. This was enough to spook currency markets and Sterling tumbled to its lowest levels against the US Dollar since the depth of the 2008 financial crisis.

USD – Stronger-than-expected economic data out of the US boosted the US Dollar against every other major world currency.

Durable goods orders in January fully unwound their December decline. Core capital goods orders rose by 3.9% on the month – this is a useful proxy for capital expenditures. The January rebound should allay any recession fears.

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Bank of England Indicates Interest Rate Hikes Still Far Off

Bank of England Indicates Interest Rate Hikes Still Far Off

Bank of England appears to be still far from raising interest rates, after its policymakers showed more unanimity than expected Thursday in keeping the key borrowing rate at a record low.Amid concerns over low inflation and slowing growth in Asia, the Bank of England’s policymakers voted 8-1 to leave the rate at 0.5 percent for a 78th consecutive month and opted not to pump more money into the economy.

The near-unanimity surprised investors and analysts, who had expected two or even three policymakers to seek a rate increase. The pound fell sharply on the news, to $1.5482 from $1.5630 earlier.

The prospect of a longer period of low interest rates tends to weaken a currency.Governor Mark Carney said that the Bank of England is “drawing closer” to a rate increase as Britain’s economic growth remains among the fastest among advanced economies.

But when remains an open question.”The exact timing of the first move cannot be predicted in advance; it will be the product of economic developments and prospects,” he said. “In short, it will be data dependent.”But Thursday’s decision suggests that the Monetary Policy Committee believes that moment may be far off — particularly given the low inflation numbers. Carney said inflation’s brief dip below zero was “the most striking development in the U.K. in the past year.”

Source: Bank of England Indicates Interest Rate Hikes Still Far Off – The New York Times

Moneycorp News

Some News and Information from our friends at Moneycorp USA

Currency Update

Strong Dollar Pegged Back By Fed Announcement

The US dollar continued to be the currency of choice for 2015 with strong performances against most of the major currencies throughout March. However, the recent Federal Reserve announcement has pulled back recent gains of the dollar.

The dollar tumbled toward its biggest one-day decline against the euro since March 2009 on Wednesday after the Federal Reserve scuttled some investors’ expectations for rising interest rates. The Fed also announced that growth estimations for the year had been lowered. Prior to the announcement it seemed that the EUR/USD rate was heading towards parity in rapid fashion.

While the recent news out of the US has given respite to the euro, albeit short term, the same could also be said for the pound. While the pound has been performing well against most major currencies, (recently touching a 7 year high against the euro), it has fallen well short against the rampant dollar.

The GBP/USD rate fell to below 1.50 for the first time since July 2013. The forecast in the short term is determined by 3 major factors: the Bank of England’s stance on when rates are likely to rise, UK Inflation Report and Retail Sales data for February. Uncertainty over an interest rate rise and poor financial data could see the rate head towards 1.45.

BACC – Orlando City Soccer

Moneycorp’s Kelly Cutchin, Iva Slavtcheva and Tiffany Hartmann attended the British American Chamber of Commerce networking event at Orlando City Soccer headquarters. It was the perfect venue as history was recently made with the start of Orlando’s first professional soccer team!

EB5 Conference

Account Managers, Ligia Root and Brian Bernal attended the EB5 Conference in Lake Buena Vista. They met a number of immigration attorneys and gained more knowledge of the visa process.

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Global Real Estate Council of Orlando Meeting: United Kingdom – April 22
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BACC Real Estate Summit – April 30

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