July’s currency update

Despite the unfolding drama in Ukraine and Gaza it was another relatively uneventful week in the foreign exchange market. The losers were the Canadian and New Zealand dollars, both of which suffered as expectations of interest rate increases were marked down. The leaders were the US dollar and the safe-haven Japanese yen, closely followed by the British pound. The euro was in the middle of the mix. It lost half a cent to sterling, three quarters of a US cent and a third of an Australian cent.

There was nothing too worrying about the economic statistics from the euro zone. The -1.1% monthly fall in industrial production was marginally better than investors had been expecting and consumer price index inflation was confirmed at 0.5%. Although both numbers would be considered fairly awful in the normal course of events, investors’ expectations are so low at the moment that mediocre data are welcomed with relief.

Investors did have a bit of a problem with the results of ZEW’s survey of economic sentiment though. Even though confidence in Germany and pan-Euroland was still positive, it has been fading since the beginning of the year. This month’s readings showed a continuation of that downward trend.

There had been the possibility that the European Central Bank president might reveal some new initiative when he made his quarterly presentation to the European Parliament’s Economic and Monetary Affairs Committee (ECON) on Monday but he did not. Sig. Draghi stuck to his mantra that “inflation will remain at low levels over coming months, before increasing gradually in 2015 and 2016”. That prospect does not worry him because “medium to long-term [consumer inflation] expectations remain firmly anchored in line with price stability”.

The International Monetary Fund disagrees. In a critical report published the same day the IMF called for “concerted policy efforts to strengthen the recovery and raise inflation” in the euro zone.  The implication was that the ECB’s current strategy will not be enough to rectify the situation.

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 – 9pm Monday 9am to 1pm Saturday 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.

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This entry was posted on Wednesday, July 23rd, 2014 at 1:35 pm and is filed under Currency exchange, Finance, 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.

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