by Damian -
Today has been a very quiet day in terms of economic data for both the UK and Europe.
As it is a quiet day it is also a good day to consider trading pound euros. A number of other currencies are also at milestone highs including the New Zealand Dollar (2.5yr high), Swiss Francs (3.5yr high) and the Swedish Krona (5.5yr high).
Overnight data revealed that London house prices fell for the first time in almost two years this month as declining demand led to a weakening of the property market across Britain. The survey along with other reports shows that the London housing market is slowing sharply after values surged by about a quarter over the past year.
In Europe Mario Draghi may find a falling currency can’t buy much of an economic recovery. Economics textbooks say that should lift Europe’s struggling growth rate by boosting exports and speed inflation by raising import prices.The euro has dropped toward a two-year low against the dollar since the European Central Bank president boosted stimulus earlier this month. We have also seen the pound euro touching near twenty month highs.
In the US the third estimate of Q3 US GDP will likely get attention. Data this week showed August’s new-home sales in the world’s largest economy were the strongest since 2008. An increase in interest rates by the Fed may reduce the attraction of higher-yielding emerging-market assets.
MORNING MARKET RATES:
Please contact me to discuss SPOT pricing, FORWARD pricing or alternatively placing MARKET ORDERS at pre-desired rates.
P.S. WHY NOT TAKE ADVANTAGE OF THE STRONG GBP AND LOOK AT SECURING EUROS ON A FORWARD CONTRACT FOR UP TO 2 YEARS IN ADVANCE. WE ONLY REQUIRE A 3% GBP DEPOSIT TO SECURE A RATE GIVING YOU PEACE OF MIND AGAINST RATE FLUCTUATIONS.