The article which can be found here mail online makes a few points that outside of sensationalism hold little validity, a few of which I intend to comment on.

The author of the article or one of his researchers was in contact with me when they came down on ‘fact finding’ tour asking if we knew of any ‘expats’ that were desperate to go back to the UK, which unfortunately for the reporters, we could not help them. And from the article they did not have much luck finding anything of particular interest.

“In the UK we face spiralling national debt, plunging house prices, sky-rocketing unemployment and the return of 50 per cent income tax – but for the British expats on the Costas the situation is even worse.
The Spanish economy is predicted to shrink by 3 per cent this year and one in five people is expected to be out of work – twice the EU average. Home repossessions have doubled, bankruptcies soared, and the bottom is fast falling out of the tourism industry.”

I do not think anyone can argue that the situation is harder on average for everyone, everywhere, but as far as I understand it, recently Alistair Darling has stated that the economy of the UK will contract by 3.6%.
In regards to unemployment, it has always been traditionally high in Spain; with even during its most robust year of growth it was at 8%, nearly twice the EU average. Of course there are more bankruptcies and repossessions that is the state of the economy. And tourism has only decreased by 23%, not bad considering a crisis.

“The broad reasons are well-documented. Barely six months ago, £1 bought about €1.4, but with the exchange rate now at virtual parity, the private and state pensions on which many expats depend – and which are paid in sterling – have lost almost one-third of their value.”

Unfortunately this is true, but even at a one to one exchange, 1€ goes substantially further in Spain than a £1 does in the UK. So those on sterling pensions, although maybe not able to spend as they did before they can still live. As with many of us, you just need to cut back where you can. And I am sorry to say, you cannot always expect the exchange rate to be in your favour.

“At the same time, interest rates on their investments have fallen from around 6.5 to 1.5 per cent. To compound their problems, many are tied into long-term Spanish mortgages at much higher fixed rates, so they are not benefiting from falling interest rates.”

I would be interested to see where this information came from, as a vast majority of mortgages are variable rates here in Spain. In most cases Euribor + anything from 0.5 to 2%. Yes mortgage rates might not be as low now as they are in the UK, that is due to the rates sent in Brussels and the resilience of Spanish banks, which except for one savings banks in central Spain, have not needed to rely on the central government for survival.

“There are now an estimated one million surplus homes on the conspicuously over-concreted costas, many of them purpose-built for the British market, but estate agents are closing down all along the coast.”

The figures in regards to ‘surplus’ homes are not clearly documented. Although currently there are estimated 55,000 surplus homes in the province of Malaga where the Costa del Sol is located. According to most knowledgeable people figures range from 700,000 to 1 million surplus properties in all of Spain.

“And as the only buyers are speculators making audaciously low offers (50 per cent of the asking price is not untypical), the villas and apartments expats bought for optimum prices during the recent property boom – in the belief their value could only go up – have become virtually un-sellable.”

Crap (technical term). Yes people are making low offers, of course. But for properties that are priced correctly for the current market, are selling with only small discounts being made. At the end of the day a property is only worth what someone is willing to offer.

“The picture grows more depressing still when you drive 40 minutes along the coast to the cheap-and-cheerful British enclave of Fuengirola, with its brash, football-themed bars, and cafes serving English pub grub
Strolling along ‘Fish Alley’, a gourmet thoroughfare for British stodge and lager guzzlers, it soon became clear that the glutinous gravy-train has well and truly hit the buffers.”

Amazingly there are quite a few new bars and restaurants opening along fish alley and the surrounding areas. This is a street that consists of only bars and restaurants. Those that appeal only to one segment of the market, and the low end of said market are bound to have difficulties in this climate. On the other hand those that appeal to a wider demographic are, if not thriving, at least surviving.

“Like most of his rivals, he is attempting to lure customers with cut-price meals. ‘This is the REAL deal,’ reads his latest sign. ‘Fresh Icelandic fish, fresh chips and mushy peas – only €7.50.’”

7,50€! Sorry this is vastly overpriced for one dish. Similar dishes can be found for 5€ and 3 course meals for 8€ or so.

“’Business was fantastic at first,’ said Mr Hill mournfully. ‘We only needed to open from 6pm till 10.30pm, and we would get 90 customers. Now we open for 13 hours a day, and we’re lucky if we get 30.”

Again I am  sorry. Anyone with a catering background knows that long opening hours are the norm. Also when located in an area with a lot of competition, you need to differentiate from your competition.

This is no different for anyone looking at selling a product, service or property. You need to be competitive.  If the only offers you are getting are low, maybe your prices are too high?

Regards
Andrew Belles

That way those looking at currency exchanges can go to that blog while those looking at property related articles can stay here So for market reports go to Currency Market Reports

Regards Andrew Belles

US Dollar: The dollar gained against its major rivals yesterday, with the greenback staking its claim as the second safe haven currency after the yen. This was still on the back of the US auto car makers story and concerns whether Washington will let GM and Chrysler go bankrupt. It looks like a mirror image of Monday—risk aversion grew on uncertainty surrounding the fate of the big three auto makers in the US. EUR/SUD held onto its gains from Mon¬day, as the euro remains under pressure from continued weak economic data and a potential interest rate cut tomorrow. This combined with the dollar being the currency of choice for risk averse investors, looks like it may keep the dollar up on the single currency. The dollar did start to give up some gains made on the pound, but we saw a narrow trading range between $1.42 and $1.4330.  Data 15.00: ISM manufacturing, Pending Home Sales and Construction Spending.

Pound: Sterling took full advantage of an under fire euro yesterday, with the pound managing to break back over the 1.08 level. There has now been a gain of nearly two cents on the euro from 1.07 to 1.0871, just reached in this mornings trade. The pound is benefitting from a potential interest rate cut due tomorrow from the ECB. Against the dollar its has been mixed, with an initial decline against the greenback as the safe haven play was back in play for the dollar. Investors ran for the safety net which the dollar seems to offer at present. This morning has seen a move upwards for cable, with GBP/USD breaking back over the $.43 level. The biggest loss for the pound was against the commodity currencies, as investors bought back into more riskier trades, buying higher yielding currencies where returns are higher than in their home countries. The G20 starts in London to¬day, continuing into Thursday, so currency markets will remain volatile, with remarks by world leaders expected to have an impact on the majors. Data 09.30: PMI Manufacturing expected 35 from 34.7, BoE Housing Equity Withdrawal expected –5.7B unchanged. Two-day Meeting starts today for the G20 in London.

Euro: The euro is lower today against its major rivals, with EUR/USD seeing the biggest decline. We did see some initial gains for the single currency in the morning session yesterday as book squaring took place ahead of the fiscal year end. Equity markets did manage to rebound and appetite for risk revived, despite more gloomy eco¬nomic developments. Dealers describe yesterdays afternoon decline in the euro against the dollar, yen and pound as a momentary safe-haven play given the US auto sector woes. We will probably see further euro-selling if the European Central Bank gives out any clear signals (during its planned policy meeting Thursday) that it will adopt quantitative easing, just like the UK & US. The ECB is widely expected to cut its interest rate by half a percentage point to a record low of 1%. Data at 09.00: E/Zone Unemployment Rate expected 8.3% from 8.2%

General:
We saw commodity currencies rally yesterday as market participants took the opportunity to enter into riskier trades. A higher return on investment saw gains for the Australian dollar & New Zealand dollar. We also saw gains for the Norwegian Kroner and Canadian dollar, as both currencies do benefit when commodity prices rise.

Mid-prices

GBP/USD                        1.4344
GBP/EUR                        1.0876
EUR/USD                        1.3178
GBP/JPY                         141.29
GBP/AUD                        2.0806
GBP/NZD                         2.5734
GBP/ZAR                         13.697
GBP/CHF                         1.6416
GBP/CAD                        1.8152
GBP/SGD                        2.1844
GBP/THB                         50.75
GBP/HKD                        11.123

These rates are for indication purposes only.

This information has been supplied by Voltrex. For further information contact: enquiries.spain@voltrexfx.com

US Dollar: The dollar had a mixed day yesterday, posting losses against the pound but still managed to continue its bull run on the euro. The greenback started to slide against sterling after better than expected economic data from the UK helped push up the pound across the board, as the dollar lost nearly one and a half cents on the pound to trade at an intraday low of $1.4258. The loss was confounded as the US President made a speech on the state of its auto industry. A warning that they cant depend on an unending stream of taxpayers dollars came from President Barack Obama. He gave GM 60 days and Chrysler 30 days to get their house in order, and did also say the best chance for success for either company may be bankruptcy. This saw the dollar continue to weaken in afternoon trade. The greenback did manage to continue to make some gains on the euro, as we saw the dollar hit a near two week high of $1.3112. This was helped by weak data from the E/zone and a potential rate cut by the ECB this week. The dramatic fall in equity markets did nothing to help the fall of the buck. Data 14.00: Consumer Confidence expected 28 from 25. Speakers 13.00: fed’s Stern.

Pound: Sterling had a fairly good day on Monday, managing to stem the losses against the dollar, and take some losses back, combined with an impressive run against the euro. The day started positive for the pound, with mortgage approvals posting a rise to their highest level in nine months in February. This alongside the noose of the dilemma facing the US auto car industry saw cable rally an impressive one and a half cents to hit an intraday high of $1.4276. This has continued this morning as we have seen data in the form of UK consumer confidence unexpectedly rise for the second straight month in March, pushing cable over the $1.43 level. Sterling’s performance against the euro also looked bullish, as we saw the pound rally nearly a cent to trade over the 1.08 level. This was helped by dovish comments in the eurozone on its economy and weak economic data in the form of business and consumer confidence in the 16 nations that use the euro. No data. UK Hosts the G20 summit starting tomorrow, with world leaders beginning to arrive today.

Euro: The euro was under pressure from all sides yesterday, as a wrath of weak economic data and dovish comments from ECB members saw the single currency lose ground on its major rivals. The euro was still weakening against the dollar until the story broke regarding the US auto industry story, when the euro started to make back some of those losses. The stem was not halted against the pound however, as better than expected data from the UK helped boost sterling against the euro, with EUR/GBP hitting a two week low of 0.9240. The data from yesterday was not good reading, with business and consumer confidence in the 16 nations that use the euro weakening further to reach a record low in March. Comments from European Central Bank Governing Council member Axel Weber didn’t help the euro, stating Germany will not see a recovery in its economy until 2010. This combined with a potential interest rate cut by the ECB this Thursday are weighing heavily on the single unit. Data at 09.00: E/Zone CPI Estimate YoY expected 0.9% from 1.2%.

General:
Japan’s jobless rate hit the worst level in more than three years, data released this morning stated. This has weakened the Japanese currency against its rivals, with the dollar and sterling posting gains.
Ireland was stripped of its AAA credit rating and downgraded to AAA+ by S + P, while being warned that it could drop further if Dublin fails to get its public finances under control. This also hurt the strength of the euro.

Mid-prices

GBP/USD 1.4270
GBP/EUR 1.0785
EUR/USD 1.3245
GBP/JPY 140.10
GBP/AUD 2.0740
GBP/NZD 2.5054
GBP/ZAR 13.709
GBP/CHF 1.6322
GBP/CAD 1.7874
GBP/SGD 2.1674
GBP/THB 50.49
GBP/HKD 11.056
These rates are for indication purposes only.

This information has been supplied by Voltrex. For further information contact: enquiries.spain@voltrexfx.com

US Dollar: The USD continued to trade higher against the pound this morning into the early 1.44 area, and within tight ranges against the Euro at 1.3540. The US economy shrunk by less than expected in the last quarter 0f 2004. The figure came out at –6.3% better than the -6.5% expected but worse than the initial estimate of –6.2%. Jobless claims in the US were slightly worse than expected at 652k against 646k expected. Traders reported that the USD is unlikely to continue falling, because many short-term-focused investors are refraining from dealing actively ahead of an event-rich next week including the G20 meeting and ECB/UK rate decisions. “Short-term players wouldn’t be able to trade actively today because we have a plenty of events that could set a long-term trend for the currency market,” said Hiroshi Maeba, a senior dealer at Nomura Securities. Data: 12:30pm Core PCE Price Index exp 0.1% prev .01% Personal spending exp 0.2% prev .06% Personal Income exp -0.1% prev 0.4% 13:55pm Revised UoM Consumer Sentiment

Pound: Sterling has continued to struggle against the Euro and USD in the last few days moving into the low 1.06 area this morning and 1.44 against the USD before the current account deficit figure due at 9.30am. A recent survey published in the Telegraph showed that 1 in 10 people in the UK want an end to the public spending boom of the labour years. April is likely to prove a critical month for the Government with the Budget announced later in the month. The financial district in London known as the city is preparing for a busy week– an agreement has now been reached on many of the steps that can help restore global economic growth through enhanced international coordination, and on further measures to be recommended to the leaders at the London Summit on 2 April according to http://www.londonsummit.gov.uk. Data: Current Account exp –5.B

Euro: The euro remained inside its recent tight range against the dollar yesterday, but did make gains on the pound. EUR/USD traded between $1.35 – $1.36, while the single currency took over 1% off sterling to trade at an intraday high of 0.9411. Analysts say that considering the U.S. Federal Reserve’s quantitative easing, the euro is unlikely to stay down for long, as the ECB is unlikely to be as aggressive as the U.S. central bank. “In an environment of economic deterioration, zero percent interest rates, quantitative easing, fiscal stimulus, large trade and current account deficits, ballooning budget deficits and a need to make U.S. assets cheaper and create some inflation…a weaker dollar is a logical conclusion,” said technical strategists at Citigroup. They say the euro’s next move is toward $1.39. The euro, meanwhile, was almost flat against the yen and higher against the dollar. Dealers said the euro could strengthen in the days ahead thanks to players’ recovering risk appetite. Yet any moves could be quite volatile because of the much-awaited ECB policy meeting next week. The European Central Bank looks like it may cut interest rates further next week, if the string of dovish comments shortly before the Governing Council meeting are any guide. Expectations of the ECB’s next move have shifted dramatically over the last week with markets now seeing a 98% chance of an April rate cut after giving it only a 38% chance last Thursday. Data: Industrial new orders exp—5.7% prev –5.2%

General:
Falling Oil Supply Risks a Price Rise
US reveals sweeping regulatory overhaul
The dollar fell against the yen in Asia Friday because Japanese exporters sold the greenback

Mid-prices

GBP/USD 1.4394
GBP/EUR 1.0639
EUR/USD 1.3522
GBP/JPY 141.08
GBP/AUD 2.0580
GBP/NZD 2.5042
GBP/ZAR 13.6224
GBP/CHF 1.6243
GBP/CAD 1.7713
GBP/SGD 2.1720
GBP/THB 50.663
GBP/HKD 11.1535

These rates are for indication purposes only.

This information has been supplied by Voltrex. For further information contact: enquiries.spain@voltrexfx.com

US Dollar: The US dollar saw a traumatic day in the markets yesterday as a huge drop in the strength of the greenback was seen amid confusion over US Treasury Secretary Tim Geithner’s comments. Geithner initially appeared willing to entertain a Chinese proposal that an international currency supplant the US dollar as the key global reserve currency, but later added “the dollar remains the world’s dominant reserve currency and I think that’s likely to continue for a long period of time.” The probability of the US actively talking the dollar down re¬mains remote, but it has left some doubt in investors minds.  The reaction of this was to see the dollar drop over two cents against sterling in the space of minutes, from $1.4548 to trade at $1.4738, then re-tracing back to $1.4591 more or less straight away. A similar story was seen against the euro, with an initial  sell off of the dollar of two cents, but again, almost immediately we saw the retracement back by a cent to trade around $1.3510. Data 12.30: GDP4Q expec.–6.6% from –6.2%, Personal Con. –4.4% from –4.3%. Speakers 14.00: Geithner

Pound: It was not sterling’s day yesterday, and that doesn’t even take into account the huge swings we saw on cable on the back of comments by the US Treasury Secretary. After decent gains for the pound earlier in the week, we were hit with dire economic data in the form of the CBI data, showing sales volumes at UK retailers declined rapidly in March and much more than expected, as economic recession and depressed consumer con¬fidence continued. The survey’s retail balance fell to –44 from –25 in February. Market participants had been expecting the balance to slide to –35. This saw the pound sold off against the euro and dollar. Sterling gave up a whopping two cents on the euro, from 1.0896 to hit an intraday low of 1.0669, recovering slightly this morning to trade at 1.0753. Cable didn’t fair much better as we saw over two cents given up on the dollar, to hit an intra¬day low of $1.4515. In the middle of this, we saw the huge wobble on the dollar after US Treasury Secretary’s comments saw the dollar sold off aggressively, with a swing of two cents both ways within minutes of each other. Data 09.30: Retail Sales MoM expected –0.4% from 0.7%, YoY expected 2.5% from 3.6%.

Euro: It was a fairly good day for the euro yesterday with gains made on the dollar and sterling. And this didn’t even take into account the wobble which the dollar had on the single currency half way through yesterday’s trading. There was a gain of one and a half cents on the greenback, to hit over $1.36, and in the middle of that, was a surge against the dollar for EUR/USD to hit an intraday high of $1.3648, which was immediately given back after the US Treasury Secretary corrected his comments on the value of the dollar.  It was an impressive day for the euro against sterling, as we saw over 2% gained on the pound, to hit an intraday high of 0.9373. This was despite weak economic data from Germany in the form of the Munich based Ifo institute report,. This showed the index dropped from 82.6 in Feb to 82.1 in March, the lowest since the pan-German survey began in Jan 1991. Be aware however that sentiment towards the single currency remains weak as investors believe the ECB will likely cut interest rates by 50-75 basis points at its meeting on April 2nd. Data 09.00: Italian Trade Balance & E/Zone M3 YoY.

General:
Romania has joined the long list of countries in Eastern Europe to tap emergency aid from the International Monetary Fund (IMF), securing a €20bn package to help cover an avalanche of foreign debts due this year. This is hot on the tracks after we saw the Czech government virtually collapse the previous day
Oil prices rose overnight to $53.31/barrel as optimism remained about the economic recovery in the US.

Mid-prices

GBP/USD                        1.4605
GBP/EUR                        1.0765
EUR/USD                        1.3566
GBP/JPY                         142.81
GBP/AUD                        2.0810
GBP/NZD                         2.5239
GBP/ZAR                         14.752
GBP/CHF                         1.6359
GBP/CAD                        1.7920
GBP/SGD                        2.1992
GBP/THB                         51.54
GBP/HKD                        11.319
These rates are for indication purposes only.

This information has been supplied by Voltrex. For further information contact: enquiries.spain@voltrexfx.com

US Dollar: The dollar is generally higher this morning as equity markets calmed down after their strong rally on Monday/Tuesday, enabling the US dollar to gain back some lost ground in its sharp retreat last week. The dollar had fallen to $1.4779 on the pound, but has recovered over a cent to trade at $1.4626 this morning. The initial fall was after inflation data in the UK showed a surprise rise, pushing the dollar to its weakest level against the pound since February 10th. Against the euro, the dollar has recovered well, taking over two cents of the single currency to trade at $1.3431 this morning. Global markets seem to be in consolidation as investors wait to see if positive reaction to the latest US rescue plan continues. Looking ahead to today we have key data due in the form of New Home Sales and Durable Goods orders, all expected to be fairly weak. Data 12.30: Durable Goods Orders expected –2.0% from –5.2%. 14.00: New Home Sales expected 300k from 309k, MoM expected –2.9% from –10.2%.

Pound: Sterling jumped in the markets yesterday as UK inflation data proved stronger than expected in February and the governor of the bank of England Mervyn King said the currency’s recent fall hadn’t been engineered and he could see no reason why it should go any lower. This morning the pound is trading at $1.4626 against the dollar, slightly down from its six week high yesterday of $1.4779. Sterling also shone through against the euro, as we saw over two cents taken off the single currency to hit a nine day high of 1.0917.The inflation data showed that UK February consumer price index rose by 0.9% on the month earlier and by 3.2% year on year, well above the expectations of a 2.0% increase on the month and a 2.5% advance on the year. The markets are likely to interpret the surprise upside on inflation as reducing the need for quantitative easing and, by extension, will see it as sterling positive. We also saw tensions rise yesterday between the Governor of the BoE and Gordon Brown, as Mervyn King warned that Britain could not afford a second economic stimulus in the Budget. Data 09.30: Retail Sales MoM expected –0.4% from 0.7%

Euro: The euro has recovered slightly this morning against the pound and levelled off against the dollar, after the bashing it took in the currency markets yesterday. We saw the euro give up over 2% on sterling, hitting a week low of 0.9160, currently trading at 0.9180. This was after a surprise jump in UK inflation and comments from the governor of the BoE which supported the pound. The euro also lost ground on the dollar, as a halt in the recent rally in equity markets gave support for the greenback, with EUR/USD losing over two and a half cents to trade at $1.3445 this morning. Also, speculation is growing that the ECB may cut interest rates by as much as 50 basis points at its meeting next week, keeping players away from buying the single currency. No data.

General:
The economic crises sweeping Central and Eastern Europe has claimed a third victim in a month after the Czech government lost a vote of no confidence on Tuesday night in a dram that risks setting off a fresh round of investor flight from the region.
Oil prices are lower on profit taking after rising to four month highs on hopes of a US economic recovery.
Nymex crude is currently trading at $53.98 per barrel.

Mid-prices
GBP/USD    1.4642
GBP/EUR    1.0890
EUR/USD   1.3415
GBP/JPY    142.79
GBP/AUD   2.1113
GBP/NZD    2.6250
GBP/ZAR    14.023
GBP/CHF    1.6532
GBP/CAD    1.8027
GBP/SGD    2.2118
GBP/THB    51.82
GBP/HKD   11.3221

These rates are for indication purposes only.

This information has been supplied by Voltrex. For further information contact: enquiries.spain@voltrexfx.com

• Stock markets soar as risk sentiment retracts

• Yen and dollar sold off across the board

• Sterling sees gain on euro and US dollar

• New Zealand and Australian dollars continue to make gains

US Dollar: US stocks soared on Monday, dragging down the dollar after Treasury Secretary Tim Geithner detailed his pro¬posals for public-private partnerships to deal with toxic assets in the financial system and prominent investors vowed to take part in the programme. This pushed investors to sell the lower yielding and ’safe haven’ curren¬cies such as the US dollar and yen, and buy more higher yielding currencies, namely the euro, Aussie and Kiwi dollars, and to an extent, the pound. The dollar gave up nearly three cents against the pound to trade over $1.47 and nearly two cents against the euro to hit $1.3677. The dollar did gain against the yen, as the Japanese currency became the whipping boy currency for the day. The stock markets rose, with a gain for the S+P of over 7% and the Dow gaining over 6% and oil pushing higher, all combining to put pressure on the greenback.  Data 14.00: House Price Index MoM expected –0.8% from 0.1%. Speakers 14.00: Bernanke & Geithner.

Pound: Sterling was sitting pretty yesterday as we saw another dramatic day in the currency markets. There was always going to be big moves with the anticipation of US Treasury secretary’s announcement on how the US was going to deal with the so called ‘toxic assets’, and the markets didn’t disappoint. A surge in investor confidence saw stock markets rally, oil up, gold up and a sell off for the buck, with the pound being one of the main benefactors. Cable gained nearly three cents to multi month highs of $1.4736. We also saw sterling rise against the euro, with an impressive gain of nearly two cents to trade close to 1.08. This was also helped by the fact the Germany is now calling for its economy to contract by 4.5% instead of 2.25% in GDP, and the president of the ECB say¬ing the interest rate could go lower. Data 09.30: CPI YoY expected 2.6% from 3.0% & BBA Loans for House Purchase.

Euro: The euro surged against the yen and dollar yesterday, as it benefitted from the US move for helping with toxic assets. A gain of nearly two cents was posted as the single unit hit close to $1.37. The euro didn’t fair to well against the pound, as sterling also rallied on the back of the dollar move. We saw the euro fall nearly 2% to hit 0.9278 this morning. The euro seemed to be under pressure itself after Germany called for its economy to con¬tract by 4% to 4.5% this year, from an assumed contraction of 2.25% in GDP earlier. There was also news that the president of the European Central Bank said yesterday that the bank’s main policy rate could go lower as the 16 nation eurozone grapples with the global economic downturn. Data at 09.00: E/Z Purchasing Managers Index

General:
• After a bruising nine months as a punching bag for global currency markets, the Australian dollar is tak¬ing steps to regain its previous status as an outperformer. If US dollar weakness in the past week or so persists and market confidence grows in the Federal Reserve’s quantitative easing policy, then the Aus¬tralian currency may hold around current levels and could rally some more.
• China’s central bank on Monday proposed replacing the US dollar as the international reserve currency with a new global system controlled by the IMF.

Mid-prices

GBP/USD                        1.4670
GBP/EUR                        1.0772
EUR/USD                        1.3602
GBP/JPY                         143.78
GBP/AUD                        2.0805
GBP/NZD                         2.5704
GBP/ZAR                         13.756
GBP/CHF                         1.6477
GBP/CAD                        1.7936
GBP/SGD                        2.2086
GBP/THB                         51.75
GBP/HKD                        11.3582

These rates are for indication purposes only.

This information has been supplied by Voltrex. For further information contact: enquiries.spain@voltrexfx.com

• Cable breaks back over $1.46 as the greenback is sold off

• US plan to remove banks toxic assets from their books weighs on dollar

• Aussie and New Zealand dollars gain as commodities rally

• Norwegian Krone takes advantage of higher oil and risk appetite rise

US plan to remove banks toxic assets from their books weighs on dollar
Aussie and New Zealand dollars gain as commodities rally
Norwegian Krone takes advantage of higher oil and risk appetite rise

US Dollar: Friday saw the dollar ease its slide against the majors, as the fallout from the US Federal reserve’s quantitative easing decision eased slightly, but the dollar is still weaker this morning. The greenback has now weakened enough for two key levels to be broken on the pound and euro, with $1.46 and $1.37 be broken respectively. Although the Fed’s quantitative easing announcement late Wednesday sent the dollar reeling, currency trading had calmed down as markets wait for the evidence that the exercise will work in terms of improving credit conditions and helping bring an end to the US recession. Looking ahead to this week, we have the final figure for fourth quarter gross domestic product, which is expected to show a steeper drop in US economic activity than previously reported. Data on February home sales will also be reported, while more retailers will post quarterly results. Data 14.00: Existing Home Sales MoM expected –0.9% from –5.3%. Speakers 14.00: Fed’s Rosengren.

Pound: The rise in risk appetite late last week helped sterling’s position against not only the dollar, but also put a stop for the pound’s decline against the euro. With cable breaking back over the $1.46 level, a gain of seven cents has been posted since last Wednesday, with investors selling the buck and buying more so called ‘”riskier” asset, helping boost the pound. This move helped the pound gain over a cent on the single currency, as GBP/EUR hit 1.0654 this morning. The move into so called riskier assets has not been good news for the pounds position against all currencies, as sterling’s position against the higher yielding Aussie and Kiwi dollars slipped, with commodities rallying. The pound has however kept its fairly strong position against the Canadian dollar, despite a gain in Oil prices. It seems the Canadian dollar was dragged down by a sell off for the greenback. No data.

Euro: The euro has continued its rise on the dollar this morning, confounding its gains made late last week. EUR/USD has now broken over the $1.37 level, with investors opting to buy riskier assets with higher returns, which has benefited the single currency. This has however, seen a slight fall against the pound with over 1% lost since last Wednesday, hitting 0.94 this morning. Looking ahead, focus s for the markets will be on the US’s administration’s plans to deal with toxic assets within banks. The focus will be on Geithner’s press conference. The euro is possibly moving up ahead of this. Traders expected downside for the euro to be contained, and more gains possible if risk aversion ebbs further. Data at 10.00: E/Z Trade Balance Jan.

General:
• The Aussie and Kiwi dollars have both benefitted from the rise in risk appetite, as we see investors move funds out of currencies and more into commodities, such as gold and crude oil, in reaction to the trend towards printing money in most major economies. The pound has lost ground on the back of this.
• The Norwegian Krone has also been a beneficiary of the Fed’s move, cashing in not because of the improvement in risk appetite that took place after the Fed’s announcement, but also because of a rise in crude oil prices. Crude oil has now rallied back over the $52.00 per barrel.

Mid-prices

GBP/USD      1.4601
GBP/EUR     1.0626
EUR/USD     1.3701
GBP/JPY      139.61
GBP/AUD     2.0821
GBP/NZD     2.5642
GBP/ZAR     13.727
GBP/CHF     1.6288
GBP/CAD     1.7729
GBP/SGD     2.1929
GBP/THB     51.21
GBP/HKD     11.2706

These rates are for indication purposes only.

This information has been supplied by Voltrex. For further information contact: enquiries.spain@voltrexfx.com

US Dollar: The recent weakness seen by the USD triggered by the Federal reserve’s decision to adopt aggressive quantitative easing on weds evening continued yesterday morning pushing sterling up from 1.4269 around 8am to a high of 1.4567 by mid afternoon and from 1.3476 to 1.3736 against the Euro in the same timeframe. Yesterday saw the Euro stage the largest one-day rally ever against the USD. There is now expectation for the USD to suffer from an increase in global risk appetite from such large easing in US monetary policy and a likely rise in inflationary concerns longer term. The method of quantitative easing comes after similar exercise in Japan and more recently in the UK. Some traders “are left wondering whether the FED is taking this action because they fear the ongoing slowdown could be even worse than currently expected—and they are getting their retaliation in first” said IG Index strategist David Jones. US stocks futures are lower this morning, after markets fell Thursday as such banks as Citibank gave back of the week’s gains. Unemployment claims came in at 646k yesterday, lower than the expected 652k but remain high near 5.5 million. Data: FED Chairman Ben Bernanke speaks at 16:00pm

Pound: Sterling remains in good shape this morning against the USD at 1.4542 as USD weakness continues to pin up the current  exchange rate. The pound has also recovered from overnight weakness against the Euro trading back above 1.06. Spencer Dale, chief economist of the Bank of England commented that nothing in most recent data had caused him to revised last month’s forecast suggesting that “a substantial amount of the total contraction we’re going to see has come through” . This outlook was justified by highlighting the effects of a large number of interest rate cuts, aggressive quantitative easing, lower commodity prices,  the pound’s fall and banking bail-out, a stimulus, that was “significantly greater than that seen at comparable points in previous recessions”. Chancellor Darling refused to say that the prime minister should apologise for Britain’s economic collapse and instead highlighted “What will help all of us is if we put forward measures to strengthen and improve our regulatory regime that will help us get through this downturn and recover as quickly as possible” Lets hope sterling recovers in the same way. No data due

Euro: The European currency is down slightly against the USD, yen and sterling this morning but some market participants predict the EUR continuing to rally against the USD. The Euro should remain well supported in the current market but there will be a heavy influenced by expectations over Euro-zone interest rates leading up to early April when the ECB meet again on the 2nd of April. Some market participants are questioning why the ECB are keeping interest rates relatively high after drastic cuts made by the UK and US. The fact remains economically the economy is showing continues signs of being under pressure. Germany has been hard hit by the global downturn due to its reliance on exports, the German Finance Ministry said today, adding that there are no signs for a turnaround yet. This is not being helped at all by such a strong Euro. Data: Industrial production forecast –3.8% prev –2.6%. Italian unemployment rate, forecast 7% prev 6.7%.

General:
Canadian dollar – The loony has now weakened off against sterling in a move that has mirrored what has happened with the USD
• Gold – Spot gold slipped after rallying more than $30 overnight, falling $7.30 to $951.70 a troy ounce
• Oil – Oil prices are lower this morning but stayed around $51 a barrel

Mid-prices

GBP/USD                        1.4537
GBP/EUR                        1.0630
EUR/USD                        1.3670
GBP/JPY                         137.47
GBP/AUD                        2.1014
GBP/NZD                         2.5837
GBP/ZAR                         13.9797
GBP/CHF                         1.6262
GBP/CAD                        1.7922
GBP/SGD                        2.1926
GBP/THB                         51.293
GBP/HKD                        11.2652
These rates are for indication purposes only.

This information has been supplied by Voltrex. For further information contact: enquiries.spain@voltrexfx.com

US Dollar: The dollar was taken to the woodshed and beaten like a dog in late trade yesterday. The actions of the FOMC caught the market somewhat by surprise. The FOMC said it would buy $300bn in longer dated Treasury’s over the next six months, along with another $850bn in mortgage-related debt, in a bid to improve credit markets and pull the US economy out of its hole. Looking at what happened, it seems quantitative easing is at present, currency negative—as it was for sterling, yen and the Swiss franc. However, an alternative expla¬nation is that with last night’s move, the Fed had finally gotten ahead of the curve and this will boost confidence of a recovery later this year, hurting the greenback with an increase in risk appetite. The dollar gave up a whop¬ping five cents against the euro bang on 18.00 last night, and is still trading at those levels. We also saw  the dollar dramatically fall against the pound, breaking back under the $1.40 barrier, to trade at $1.4230, a two and a half cent drop. With the US easing monetary conditions this aggressively, it comes to everyone’s mind that there will be a greater supply of dollars, thus, there could be more inflation risks and more dollar weakness. Data 14.00: Leading Indicators expected –0.6% from 0.4%.

Pound: Sterling can be forgiven for not knowing where to look this morning after the whirlwind moves by the Fed last night. In a tale of two halves, we saw a dramatic boost for cable, as we shot back over the $1.40 levels and then some, hitting a near two week high to trade at $1.4238. Buyers of euro’s look away now, as it was completely the opposite for the pounds moves against the single currency, with sterling giving up over two cents to trade at a seven week low of 1.0551. The pound didn’t help itself with shocking unemployment data released, showing the amount of people now not in work has moved over the 2 million mark. The number of people sign¬ing on for jobless benefits jumped at its fastest rate since 1971. Some city economists forecast that unemploy¬ment us set to spiral much higher, to about 3.3mil, levels not see even during the 1980’s recession. For now, the euro remains well supported against the pound, as it is also benefitting from the move away from dollars and into a higher yielding currency. This is keeping GBP/EUR under pressure.
Data 09.30: Public Finances & Public Sector Bet Borrowing. 11.00: CBI Industrial Trends.

Euro: Risk appetite sent the euro to its best level against the dollar since January 9th in late US trade yester¬day, and also to a seven week high against the pound. The move by the Fed to aggressively buy Treasury’s was seen as a green light for players to buy much less risk sensitive trades, selling the dollar and buying the euro. The single currency built on its gains made overnight on the back of tumbles in US interest rates and the Fed’s announcement of plans to buy up to $300bn of long term Treasury securities in the next few months. The euro has slipped some from its multi months highs against the dollar and yen in Asia this morning, as players took profits after its surge driven by stepped up US monetary easing.
Data at 10.00: E/Zone Industrial Production MoM expected –3.8% from –2.6%.

General: Sure to attract some attention today is a FT article titled Norway’s Krone: the new safe haven currency? The crux of the piece is that the Norway unit could well be the least ugly currency at present, as the Chf, Jpy and now the Usd appear to have lost their safe haven status. One banker interviewed lauded the NOK as the best currency in the world and cited stabilising oil prices, a C/A surplus and little perceived chance of a default, relatively strong Q4 growth of 1.3% y/y and the fact that Norway is not expected to experience a major downturn in 2009, nor have to resort to QE.

GBP/USD                        1.4277
GBP/EUR                        1.0591
EUR/USD                        1.3474
GBP/JPY                         136.49
GBP/AUD                        2.1028
GBP/NZD                         2.6209
GBP/ZAR                         13.82
GBP/CHF                         1.6278
GBP/CAD                        1.7753
GBP/SGD                        2.1652
GBP/THB                         50.68
GBP/HKD                        11.0665

These rates are for indication purposes only.

This information has been supplied by Voltrex. For further information contact: enquiries.spain@voltrexfx.com

Why use Voltrex Foreign Exchange?

Voltrex Foreign Exchange will save you money and in addition to providing with a more personal and efficient service than your bank. As a foreign exchange specialist the volume of currency trades and lower operating costs allows them to pass significant savings onto their clients. At Voltrex Foreign Exchange, Leigh Payne is the dedicated dealer who will guide you through the whole procedure from start to finish. Significant savings will be realised on your currency exchanges as Leigh will keep you informed of market activity which could improve your FX transaction.

How do I begin trading with Voltrex Foreign Exchange?

Opening an account is free and holds no obligation to trade. Once open you are in a position to secure rates by telephone or over the internet. Once a rate has been agreed between Leigh and yourself an immediate confirmation of the deal contract will be emailed to you. You may email or return by fax or post the onward payment details of your currency.

How long does it take to transfer my funds abroad?

For the major currencies same day and next day transfers are usual. Voltrex uses priority SWIFT method for all transfers which mean quick and safe transfer of funds worldwide. As with all bank to bank transfers, the time it takes to receive the funds in the beneficiary account is also dependent on the receiving party.

What rate will I be offered?

The rates that our dealers access are live ‘interbank’ prices (the price at which one bank sells to another). Real-time aggregation of prices from multiple sources means competitive rates can be passed onto our clients. As an internet and telephone based service, we do not have the large overheads of high street FX retailers.  Thus, we are able to offer more competitive prices than the typically quoted high street banks, building societies and bureau de change operators.

Can I fix an exchange rate now for a future purchase?

Yes, an exchange rate can be fixed for up to 2 years in the future. This means that you can determine exactly how much you need to spend on a future purchase without having to worry about fluctuations in exchange rates. This type of contract is called a called a Forward Contract. Please contact Leigh Payne for more details.

How do I pay for the currency contract?

Funds must be credited to the Voltrex client account that corresponds with the currency being sold.  CHAPS, BACS or internet payments are accepted. Payment is required within two working days in the case of both Spot Contracts and Forward Contract margin. The balance of Forward Contracts should reach Voltrex no later than the maturity date of the contract. We do not have the facility to accept payments by cash or Cheque.

What happens if my circumstances change? If for any reason you no longer require the currency that has been forward purchased, it may be sold back to the market prior to its maturity date. This will cancel the requirement to take delivery of the currency.

For further details you can contact: enquiries.spain@voltrexfx.com