November Currency update

The euro had a tough week, losing three cents to the US dollar and nearly a cent to the pound. After several weeks of positive progress the euro ran into a wall on Thursday when statistics showed unemployment at a record high of 12.2% and inflation falling off a cliff at 0.7%. Investors suddenly clicked that the European Central Bank (ECB) was worrying about the wrong thing; inflation instead of deflation. They looked at the monetary stimulus being cranked out by the central banks in Japan and the States, where unemployment is appreciably lower and inflation is above 1%, and wondered how long it would be before the ECB had to lower its benchmark “refinancing” interest rate.

Additionally, Monday morning’s round of euro zone manufacturing sector purchasing managers’ index (PMI) readings was slightly unhelpful to the euro: Spain, Italy, Germany and pan-Euroland all delivered positive figures between 50.7 and 51.7 but France spoiled it with a 49.1 (anything over 50 implies growth and under 50 implies contraction).

The ECB meets on Thursday but no change in interest rates is expected. Markets will be looking for any indications of possible future ECB policy easing and ECB President, Mario Draghi, is likely to face questions on currency economic conditions. The EUR is looking weak against Sterling which has been supported by the improving UK economy.

By contrast the dollar had a good week, strengthening by three cents against the euro and by two and a half against the pound. After its six-weekly monetary policy meeting the Federal Reserve surprised investors by not hinting at a delay to the end of its $85bn-a-month stimulus programme. They decided this must leave the door open to the wind-down beginning before the end of the year. Friday’s stronger-than-expected purchasing managers’ index helped feed that notion.

For more information about these and the other options that are available to help send money to and from France as efficiently as possible call the experienced and friendly team at Moneycorp. You can call straight through to the trading floor on 0044 20 7589 3000 and quote “Sextant” to benefit from great rates and first transfer free (usually £15 over the phone and £9 online).


What next?

Call +44 (0) 20 7589 3000 (Open 7:30am – 7pm Monday to Friday UK Time)

> Open a Currency account today

> Request a call back

> Ask questions about Currency Exchange

Moneycorp are Sextant French Properties preferred currency partner and have been selected due to their great rates, great service and great solutions. These are some of the reasons they have transacted over two billion pounds for their clients.

Moneycorp has been in the business of moving money between countries and currencies for over 30 years and offers money-saving foreign exchange to customers ranging from blue-chip businesses to private individuals. We make money transfers simple and help you to manage foreign exchange rate movements.

Moneycorp also offer a number of different contract options for Sextant clients including a forward contract where you can fix a rate of exchange for a period in the future using just a small deposit, perfect to help take the risk out of the currency markets and budget for your French property purchase.

Tags: ,

This entry was posted on Tuesday, November 5th, 2013 at 7:51 pm and is filed under Currency exchange, Finance, French Property, Money transfer . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Leave a Reply

Join our Newsletter!

For latest news and advice about buying property and living in France. Type in your email to subscribe.