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.

Upcoming Events

International Days April – 8 – 9
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Home Expo Lake Mary – April 21
Global Real Estate Council of Orlando Meeting: United Kingdom – April 22
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Moneycorp Realtor Appreciation Party – April 23
BACC Real Estate Summit – April 30

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UK Pound Exchange Rate at 4 Month High Against the Dollar

Saw some more good news from today’s PROPERTY SECRETS about the UK/US Exchange Rate improving.

Sterling reaches four month high on US Dollar

The Pound is continuing to push up on the US Dollar, with another 1.28% gain over the past week taking it up to a rate of 1.621 on the US currency.

The Pound in particular may continue to perform well against the US currency if economic data continues to suggest that the UK economy is coming back out of recession, as data over the past week indicated. Recently, data showing that industrial output grew at its fastest pace in 25 years and that construction activity grew in July has helped to reignite the Pound’s performance.

Against the Euro however, the Pound is continuing to suffer. The Euro picked up heavily two weeks ago when the European Central Bank announced new measures to tackle the Euro-zone debt crisis – the framework of which was approved in Germany’s Constitutional Court last week giving the Euro even more upwards momentum. Sterling is therefore finding itself at around a three month low on the Euro – however this is great news if you have Euros to transfer back into Sterling from any property sales – now would be a good time to book the transfer in.

Going forward, events in the Euro zone and the US are likely to continue to cast the most influence over currency movements. However, some key events in the UK this week may also affect the Pound’s performance. UK inflation figures along with the retail and house price index on Tuesday will cast some influence, followed by the publication of the Bank of England minutes on Wednesday. If the minutes confirm that the outlook for the UK economy is getting brighter, and quantitative easing becoming less likely, the Pound may well receive another boost.

Could be a great time to invest in Florida property!

Let us know if we can assist.

Best!

Bill Cowie

President

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British Homes Group Recommends Moneycorp

Moneycorp, as you may know, specialises in arranging currency exchange and easy currency transfers around the world – including to and from Florida and the UK.

A valuable and convenient service for all Florida villa owners!

Laura and her team at Moneycorp have helped, and continue to help, not only British Homes Group clients, but thousands of people around the UK, and here in Florida, transfer funds between the two locations.

We have always been happy to mention their currency exchange services to anyone with a UK / Florida connection and the need to exchange pounds to dollars or visa-versa.

With a dedicated office in Florida – in addition to their London headquarters – they specialise in currency exchange and international payments.

They can help you transfer your money at the right time, in the right way and when rates are in your favour.

They provide a personal Account Manager with expert market guidance – completely free of charge.

Due to recent changes in the US banking regulations, sending money to and from the USA can be difficult, but Moneycorp can still help.

They have a freephone number that works from the UK or the US so please call…

+1 877 252 8232

…if you have any questions about the current rates and programmes.

Mention code BHG2960 (if you call) to receive the Free Trading Facility feature.

We also have a Moneycorp Account link to set up a trading account online. The free trading facility is applied automatically.

It’s also free to have a Moneycorp Account and doesn’t place you under any obligation to trade or use their services.

All part of our “one-stop shop” service for our many thousands of customers in the UK.

Bill Cowie

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The BRITISH HOMES GROUP Florida
2960 Vineland Road | Info@britishhomesgroup.com or (+1) 407 396 9914

UK Economy Update

Quick update from our colleagues at MONEYCORPS in the UK today:

UK Growth Alert

                                         Actual        Expected       Previous

GDP quarterly (Q1)       0.3%            0.3%           0.2%
GDP annual (Q1)             -0.2%          -0.2%         -3.1%

It always takes a while for the Office for National Statistics to piece together its picture of overall economic performance. That is why it undertakes the cumbersome assessment of Gross Domestic Product (GDP) only every quarter, not every month. Evidence of the task’s complexity was clear when the ONS had to postpone the release of the data because it could not reconcile the numbers.

Today’s figures eventually showed what investors had been expecting all along; the UK economy grew by 0.3% in the first three months of the year. But they also contained a surprise. Earlier estimates for the peak-to-trough decline in GDP had put the figure at -6.2%. Today’s revision updated that figure to -6.4%. There was also confirmation that, in volume terms, the 4.9% fall in calendar 2009 was a record annual drop.

Whilst this data represents just about the most backward-looking statistics in the book (in that they relate to a period that ended more than three months ago) they are the most up-to-date and accurate measure of overall economic performance that is available. Investors therefore set great store by them. They also tend to be optimistic that successive revisions will show an improving picture. In that respect, today’s numbers were a disappointment, prompting a knee-jerk sell-off for the pound.

Very quickly, however, reality kicked in and the pound set off higher. Other than that figure relating to the 2008-09 recession overall, the numbers were no worse than analysts had predicted and were better than the equivalent statistics for the euro zone (subject to revision). From here on in, the questions will centre on the impact of Chancellor Osborne’s austerity budget. Will it, as some fear, derail what is clearly a fragile recovery?

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Regards,

Bill Cowie
www.BritishHomesGroup.com

UK/US Currency Update April 2010

BRITISH HOMES GROUP

April 15, 2010

From our colleagues at Moneycorps:
 
“The Pound benefitted from strong data released last week, including better growth estimates, rising house prices, and strong manufacturing statistics. Recent Sterling volatility concerning a possible hung UK Parliament was somewhat alleviated with the announcement of Britain’s general election, to be held on the 6th of May.
 
Uncertainty over these elections will still likely bring volatility as government agencies lean toward either the Tory or the Labor Party views for addressing Britain’s budget crisis. The result of this debate, basically whether to continue or to halt government spending post-election, will determine the success of the economic recovery. Although Sterling has indeed broken the trading range seen over recent weeks, looming fears leading up to the election should keep pressure on the currency.
 
Yesterday’s better-than-expected trade balance figures out of the UK, a £6.3 billion February deficit against the forecasted £7.3 billion deficit, was a vast improvement to the £8 billion deficit reported the previous month. With the lowest UK deficit reported since August, Sterling moved above the 1.54 GBP/USD technical barrier.
 
With the most US jobs created in three years in the month of March, it is natural that consumers are becoming more comfortable spending. Yesterday’s announcement of a widened trade deficit in the United States revealed economic growth, with a push from Americans purchasing more foreign-made goods, the highest demand since 2008. Watch for US unemployment & housing data being released this week.”
 
Recent Trading Range: $1.48 – $1.55

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