Money Exchange Rates: A Snapshot of Recent Global Economic ActivityMarch 29th, 2012
The analysis of the supply and demand issues that underpin the national economies around the globe and their interaction is integral to the success of the foreign currency exchange traders who provide the money exchange rates for domestic and commercial users alike.
UK factory prices rose just 0.1% from July 2011, which represents the smallest increase since September 2010. Market analysts felt this slowdown in the economy suggested that inflationary pressures were receding. Amid slowing global growth and speculation that the Euro interest rates will be cut, this led to a strengthening of money exchange rates against the Euro with the best exchange rate pound to euro likely to alter dramatically in the next few weeks.
With the Pound gaining against the Euro, eyes turned to the US Presidential address. Whilst early job news led to a small weakening in the US dollar, the speech, with its commitment to tax cuts and job creation led to a strong upsurge in the best exchange rates for us dollars, particularly against Sterling and the Euro. It also brought stability to global demand and boosted a number of those money exchange rates that have significant export links with the US.
As identified across the markets, the relative level of calm exuded by the UK economy amongst a raft of announcements meant a lot of expectation that Sterling will generally strengthen further, although it did drop somewhat against the U.S Dollar.
In recent days, we have also seen an unexpected rise in the Australian unemployment rate to 5.3%, which led to a drop in the best exchange rates for Australian dollars as interest rate cuts were predicted. However, this was reversed somewhat later in the week after President Obama’s speech and the likely improvement in exports to China as a consequence of their factory output rising less than expected and consumer inflation dropping slightly.
All these factors represent only a small snapshot of the activity in the global markets and serve to show the complexity in analysing money exchange rates. Of course, at www.bestexchangeratesuk.com, our associates have the finest market analysts working around the clock to ensure they can provide the best exchange rates uk for our commercial and domestic clients.