Currency Update: Euroland and US - Where are we at the moment.

Published on 15/09/2011 in Your Spanish Home

There had been a lot of talk about the performance of economies and currencies plus what will be the result of certain austerity measures that could help positive growth. Well a half-cent rally ran out of steam on Monday and the pound lost more than a cent on Tuesday and Wednesday. On Thursday it leapt higher, adding a cent and a half during the London session before coming to a stop. Its net gain on the week was one and a quarter cents and the highest level for nearly three weeks.

News out of the UK stated that the economy was not great and there were rumblings that the economy is stagnating. Sterling's early lack of performance stemmed from feeble UK economic indicators.  There were not many of them and they were almost all weaker than anticipated.  The services sector purchasing managers' index dropped by more than four points to 51.1 in August. It was still in the expansion zone but not by much and it was three points shy of forecast. 

The BRC retail sales monitor showed like-for-like sales down by -0.6% on the year when they should have been unchanged. The Halifax house price index lost 2.6% in the year to August. Industrial production fell by -0.7% between July 2010 and July this year. The only ray of hope - and a dim one at that - was a 0.1% monthly increase in manufacturing production that contributed to annual growth of 1.9%.

Sterling's eventual success came as a result of what the Bank of England's Monetary Policy Committee didn't do on Thursday. There had been concern that the weakness of the economy and the lack of employment growth would encourage the MPC to decide on a second round of asset purchases (quantitative easing). One of the nine members has been pushing the subject since last October. Thus far Adam Posen has been a lone voice but investors were suspicious that others might now have joined him. When the MPC announcement made no mention of a second round of QE there was a relief rally for the pound. The pound to euro now stands at just over 1.15 (as I write this article)

Euro calculatorEven though Britain's economic data might have been a bit lacklustre the Eurozone did not excel itself either. Germany's services PMI was identical to the UK at 51.1 Chancellor of Germany Merkal lost another election in her own constituency no less. The social democrats came in with 36.1% of votes, while Merkal received 23.3% of votes. Merkals election campaign was based on her party handling of crisis in the euroland. The Germans showed they were not happy about bailing out other countries.

In the US president Barak Obama outlined his plans to create more jobs as he talked about a $447 billion jobs package. His planed (£282bn) package of tax cuts and spending plans are aimed at trying to boost the economy. This will include funding for teachers and firefighters – and tax cuts for small businesses. He told congress that politicians needed to act quickly to pass the package. However, some Republicans have already dismissed the plan as a crude attempt to boost the president’s flagging popularity in the run-up to next year presidential election. Is there a possibility of a third round of QE on the cards? Well, we will have to wait until the next FOMC meeting a fortnight’s time.

With the uncertainty in Euroland and in the US combined with consistently moving exchange rates it is important that funds sent abroad receive the best rates ie getting you more money for your money. Using a foreign exchange and international payments specialist like Moneycorp to take care of all your money transfers from one country to another can help. For more information on how Moneycorp can help contact Michael Campbell in the Costa del Sol office on +34 951 319 700 or email and let us know you heard about us on Eye on Spain.  Or check out the website at

Written by: Moneycorp

About the author:

For more information about how Moneycorp can save you money when sending money abroad, please visit the dedicated Eye on Spain/ Moneycorp website.

Right arrow icon Send to friends   Right arrow icon Printer friendly version    Right arrow icon Submit your own article


Only registered users can comment on this article. Please Sign In or Register now.

Comment Using Facebook:

Related articles in this category

20 Home Staging Tips With a Difference

A Week in Spain

Achieving a Comfortable Temperature in Your Spanish Home

Are The Banks Paying Their Community Fees, IBI, Etc?

Bank Guarantee For Renting Your Property

Big Spanish Property Price Drop – Real Case Study

Bills, Bills, Bills

Can't Afford Your Mortgage In Spain? These Are Your Options

Can't Sell? Rent It Out With Option To Buy

Community Commotion

Coping with the limited space of an apartment

Counting The Costa Locking Yourself Out

Currency Update - Eurozone Jitters

Currency Update - Eurozone Jitters Continue Following Spanish Bailout

Currency Update - Is Spain in Trouble?

Currency Update - Sovereign Debt and the Euro's continued fall

Currency Update - What Is Happening To Europe?

Currency Update April 2011

Currency Update August 2011

Currency Update March 2011

Currency Update: Euroland and US - Where are we at the moment.

Demolitions in Spain

Do I Need To Pay Capital Gains Tax In Spain?

E.T Phone Home....but Maybe not from Spain

Entering a Community and the Role of the President

Euro Currency Update July 2011

Euro Currency Update: October 2011

Euro vs Sterling Currency Market Update

Expats Hit Hard By Property Tax Probe

Furnishing Your Property in Spain

Furnishing Your Spanish Property For Holidays Or Rentals

Getting Your Pool Ready for Summer

Home Insurance in Spain

Horizontal Property Act - Part 1

Horizontal Property Act - Part 2

Horizontal Property Act - Part 3

Horizontal Property Act - Part 4

Horizontal Property Act - Part 5

Horizontal Property Act - Part 6

Horizontal Property Act - Part 7

How Do You Value A Property In Spain?

June Currency Review of Euro Vs Sterling - Things Are Looking Up

Long Term Rentals in Spain

Maximising The Value Of Your Property

Mortgage Arrears – Is "Handing Back The Keys" A Solution?

NIE Numbers And Why They Are Important

Protect Your Home in Spain From Insurance Claims This Winter

Ratable Values Are Being Revised In Marbella

Recovering Community Fee Debts From Overseas Owners

Security Is The Key For Your Home In Spain

Some Spanish Property Market Good News?

Spain Ends Monopoly Of Electricity Supplies – Could Your Community Make Savings?

Spanish Property Market Values - What Is The Truth?

Sterling - Euro Reaches New Highs

Swimming Pool Regulations

Target the Spanish

The Day the Don Juan Community Defeated Don Juan

The Impractical Side Of Spanish Architects

The Nota Simple Explained

The Pound And Euro Face Uncertain Times

The Spanish Property Crisis - How long will it last?

The Stirling Euro Yo Yo Effect

There's Something About Spain

Tips On Selling Your Spanish Property The Distressed Way

Top Sales Tips: Get The Best Out Of Your Estate Agent

Top Tips For Insuring Unoccupied Holiday Homes In Spain

TRG for Sellers

Update On The Euro From Moneycorp

Valenica Land Law Abuses Fight For Justice Continues

Weekly Euro Update - 18 May 2010

Weekly GBP Euro Update - 20 July 2010

What is a comunidad de propietarios?

What The Future Holds For The Spanish Property Market

What to Do If Unable to Pay Off a Mortgage to a Bank in Spain?

What's Happening With Aifos?

Where Is The Eurozone Economy Heading?

Why Do So Many Still Put Spain Down?

Why Is My Spanish Property Not Selling?

Why to Insure Your Spanish Home in UK

Wills in Spain - No Will....No Way

Your Property on the Web - Simple!

Click here for a list of all the articles from our magazine 

Spain insurance services

This site uses cookies. By continuing to browse you are agreeing to our use of cookies. More information here. x