Transferring your Money Abroad: Weekly Currency ReportFebruary 13, 2015 1:43 pm
The GBP gained this week to a six week high against the USD. This is after the Bank of England’s governor Mark Carney raise the Central Bank’s forecast for UK growth. This is great news for anybody looking to buy stocks and shares overseas or for people looking to purchase a house. This change in rate will also benefit anybody looking to pay for a holiday or wedding in the USA at the moment. The GBP is still remaining strong against the EUR which is good news for people who are purchasing a property in Europe.
The EUR has fallen against the GBP on a seven year low this month. The former chairman of the U.S Fedral Reserve has predicted that Greece will be forced to exit the Euro. His comments came after the Greek Prime minister told parliament he would ask fellow Eurozone members for an emergency short term bridging loan which would allow Athens more time to negotiate a new debt deal.
This week’s headlines see a lot of talk on ‘Currency Wars’. This is where countries don’t try to take down other nations currencies but instead they will cut the value of their own currencies. As a result this makes their products cheaper and therefore a higher demand. When one currency falls another currency has to go up which has been the USD. However, a strong dollar makes US exports less attractive as consumers are finding the products more expensive to buy. If you haven’t already converted your USD/GBP now would be a good time as the currency appears to be falling against the GBP once again. The USD remained strong against the GBP since June 2014 up until last week.
Swedish Krona falls as riksbank cuts rate below zero. Central Banks are now open all hours to fight against currency wars. Sweden joined Switzerland in experimenting with negative interest rates in hope that this may kick-start economic growth. The central bank has cut its rates from 0% to a negative 0.1%. The SEK has hit its lowest since April 2009 against the USD.
Categorised in: News
This post was written by Kayleigh Driscoll