Stronger Pound Against Euro Works In Favour Of British Buyers
Despite the pressure placed on the UK pound through the Bank of England's quantitative
easing policy, sterling is now becoming stronger against the euro rising to 1.22, with the market expecting that to rise still further.
The hike in the UK currencys value against the euro has lowered the cost of buying property across the eurozone, including popular destinations like Spain, Portugal, France and Cyprs.
Foreign exchange experts UK Forex comments:
Euro:
The single currency was boosted against both the GBP and USD by a strong German IFO number on Friday. Given the ongoing and well publicised troubles facing the economies of peripheral Europe, it was important that this business sentiment index from the Eurozone engine room came in firm and so a 9 month high in the release was well received by euro bulls. The common currency also benefitted from investor optimism that the second day of the IMF meeting in Washington would bring a renewed vigour amongst members to agree a larger funding package to help in the event of a sovereign default. The latter was especially pertinent on a day where Spanish 10-year bond yields briefly traded above the all-important 6% level - a strong sign that the market is still uncomfortable with the Iberian nation's financial predicament. This week there will be a lot of attention paid to the Eurozone PMI reports that are due for release and we expect continued focus on political risk as the French elections continue. GBP/EUR opens this morning at 1.2235.
United States Dollar:
A much stronger than expected UK retail sales figure sent cable shooting through well documented resistance around the 1.6100 level on the way to a multi month high of 1.6149 on Friday. Retail sales were shown to have increased by 1.8% in March, a consequence of the unseasonably warm weather prompting consumers to reach into their pockets. The number came in at its highest level since January 2011, also helped in no small part by the fuel strike that never was, which pushed car fuel sales up by 5% as concerned motorists hit the petrol pumps in their droves. There were no economic releases from the US on Friday, leaving the market to focus on the ongoing IMF and G20 meetings but better than expected economic data released elsewhere, including UK retail sales and German IFO, meant that risk appetite was well supported and subsequently the greenback was pushed lower against most of its major counterparts. Friday capped off five consecutive days of gains for GBP/USD, and it could be a choppy week ahead for the pair with Q1 GDP releases from both the UK and US due in the days ahead. GBP/USD opens this morning at 1.6090 following some mild profit taking in Asian trade.
Aussie and Kiwi Dollars:
AUD/USD and NZD/USD were boosted on Friday by improved global risk sentiment and traded to highs of 1.0385 and .8190 respectively. Both commodity currencies have been sold early on this week however as some political uncertainty in Holland and France starts to weigh a bit on risk. Australian data released overnight also showed that the countrys producer price index fell by 0.3% in the March quarter vs. expectations for a rise of 0.5%. It means expectations are now gathering pace for an imminent RBA rate cut and so Australian CPI will be an important print later tonight. Meanwhile HSBC flash Chinese PMI released early this morning has also indicated that industrial activity in China is stabilising. The April index printed at 49.1, still below the 50 level which is most often associated with a contraction in activity. As such both AUD/USD and NZD/USD open at 1.0315 and .8130 whilst GBP/AUD and GBP/NZD are slightly higher at 1.5605 and 1.9800.
by: Mike Jones
Christmas Math Activities Watches Shopping Online Income Protection Insurance - A Good Thing To Complete Experiencing The Lure And Lore Of South India Tours Rush Tickets - Rush Using Summer Tour As Inspiration For Next Album Chronic Pain Management For Cancer Patients Some Unexplored tourist destinations in Kerala Home Insurance Tips And Information For You Advantages of an Online MBA Tips to Remember When Buying Designer Sunglasses Online by:Levi Strauss Smile! Online courier services are here to help Women - How To Make the First Move Cheap Kicker CVR with Reviews