Expat currency news – pound weakened by treasury’s autumn statement
If you have a foreign currency transfer coming up, securing a competitive exchange rate can make a big difference on how much you receive. [Contributed by TorFX]
While the type of international money provider you use can impact the exchange rate you secure, with some currency brokers undercutting the rates offered by banks by up to 90 percent, picking the right time to move your money is also important. Having a little knowledge of how currencies are performing makes all the difference and our brief currency update gives you the information you need to make a move at the right time.
So, what happened last week?
The major pound-moving event of the last week was the announcement of reduced spending cuts and the scrapping of tax credits in Chancellor George Osborne’s Autumn Statement and spending review. As cuts appeared less harsh than some had been expecting, this initially gave the pound a strong boost against rival currencies. This boost, however, was soon lost as finer details of the revised budget emerged.
Pound to euro exchange rate: GBP/EUR ends the week lower, down from 1.4268 to 1.4211
If you had GBP 100,000 to transfer to Europe, your money would have been worth EUR 142,680 at the start of last week but EUR 142,110 by the end — a difference of EUR 570.
Pound to US dollar exchange rate: GBP/USD ends the week lower, down from 1.5192 to 1.5090
If you had GBP 100,000 to send to the US, your money would have been worth USD 151,920 at the beginning of the week but USD 150,900 at the end, a little over USD 1,000 less.
Pound to Australian dollar exchange rate: GBP/AUD ends the week lower, down from 2.0998 to 2.0887
At the start of the week, your GBP 100,000 would have been worth AUD 209,980 but by the end would only fetch AUD 208,870 — a decrease of more than AUD 1,100.
Pound to New Zealand dollar exchange rate: GBP/NZD ends the week lower, down from 2.3137 to 2.2956
At the beginning of last week, GBP 100,000 would have given you NZD 231,370 but at the end of the week would only achieve NZD 229,560, giving you NZD 1,810 fewer.
So, what can you expect to happen in the week ahead?
Well, the pound could potentially gain against the euro, US dollar, Australian dollar and New Zealand dollar if the UK’s latest Purchasing Managers Indexes (PMI) show that the domestic manufacturing, construction and services industries expanded in November. A growing service sector in particular would suggest that the UK economy is getting stronger and could improve the appeal of the pound.
On the other hand, slowing expansion would not be good for the health of the local economy and would make the pound weaker. If you have a GBP/EUR, GBP/USD, GBP/AUD or GBP/NZD exchange rate transfer coming up, you may want to keep an eye on how the PMIs print.
The UK’s manufacturing PMI is due for release on 1 December at 9:30am GMT, while the services PMI is due out on 3 December at 9:30am GMT.
Contributed by TorFX
TorFX is a specialist currency broker that offers far better exchange rates than you are likely to receive from a high street bank.