Euro (€) Currency Thread

belfastgirl23

pgt67 wrote: »

Would like some advice on whether or not to get my holiday cash, Euro's, over here, travelling 4th April, or as I have always usually done changed it over there, Mainland Spain. Not talking a huge amount prob around £500.

We do have both Nationwide cards to fall back on, Flex & CC but dont want to rely on them as knowing my luck the machine would swallow it up on the first attempt

No advice on the euro rate but I've never had any trouble with either nationwide CC or Flex card abroad. Far safer than taking cash IMHO

inspector_monkfish

good morning

nice overnight rally up from 1.0650 last night, all the way to 1.0780 around 6.30am

just slipped back to 1.0750 right now

inspector_monkfish

9.30am CPI & RPI
9.45am Merv King & Co speaking

JasonLVC

inspector_monkfish wrote: »

9.45am Merv King & Co speaking

Oh no.

For once, I'd wish King would keep his trap shut.

Lets see now, Merv the Swerve speaks at 9.45, Pound drops against Euro by 9.55

inspector_monkfish

08:17 24Mar09 (GBP) February inflation data awaited

(GBP) UK Feb inflation data, today (09:30GMT), are expected to reveal targeted
CPI inflation falling perceptibly to 2.6% y/y, from 3.0% in Jan, on the back of
a modest 0.3% m/m increase. RPI inflation should record a negative annual rate
of -0.8% y/y on the back of a 0.2% m/m drop, as the effects of the Jan cut in
interest rates bear down further on mortgage interest payments, and housing
depreciation costs continue to tumble. Outcomes that match our predictions
should be broadly neutral for the market considering the consensus forecasts
are in line with ours. A declining RPI inflation rate in particular should be
seen as placing further downward pressure on the future pace of pay
settlements, which already dipped to 2.6% in the 3mths to Feb, and hence wage
growth.

The inflation statistics should reveal evidence of some price restoration
occurring at retail outlets, marking the end of the New Year price discounting.

So, in particular we expect to see perceptible increases in clothing & footwear
and household goods prices. But generally speaking, the inflation profile
should be subdued by the unwinding of last year's oil and commodity price
spikes. Inflation should also be pushed lower by the effects of weakening
demand that should be restricting the ability of retailers to pass on costs to
cash-constrained households which are rapidly losing their jobs and/or
suffering from heightened job insecurity. The decline in CPI inflation
that we expect to see would mean it is moving closer to its 2% target, after
having overshot it for fifteen months. Interestingly, as the year unfolds and
CPI inflation continues to fall, the likelihood becomes one of BoE Governor
Mervyn King having to write a letter to the Chancellor explaining why CPI
inflation is undershooting its target by more than 1%!

But as for RPI inflation, which we expect to depict a 0.2% m/m drop, after
a 1.3% m/m fall in Jan, the expected m/m decline reflects the impact of the Jan
50bps cut in interest rates on the mortgage interest payments component of the
RPI. Also the ongoing decline in house prices should continue to drag down the
housing depreciation cost component of the RPI. These two factors alone should
exert a powerful negative influence on the overall RPI, overwhelming the
effects of price restoration.

Although RPI inflation is not targeted, apart from influencing the path of
pay awards, its behaviour also does have far-reaching implications for govt
coupon payments on index-linked Gilts, as well as on welfare payments such as
state pensions, unemployment benefit and income support, for instance. With
regard to govt I-L Gilt coupon payments, a falling RPI would reduce these as
well as the potential inflation uplift on maturing index-linkers. As for the
welfare and benefit payments, as these are also up-rated using the RPI, this
means 2010 will see much more subdued growth in pension, welfare, & benefit
payments (circa 2.5%, as they probably won't fall in tandem with a likely
strongly negative Sep 2009 RPI inflation rate because of downside stickiness),
after the 5% increase to be seen in Apr 2009.

So, look for falling breakeven inflation rates for the time being, as
nominal Gilts outperform their index-linked counterparts, the more so given
that the BoE is buying conventional Gilts and not index-linkers.

inspector_monkfish

JasonLVC wrote: »

Oh no.

For once, I'd wish King would keep his trap shut.

Lets see now, Merv the Swerve speaks at 9.45, Pound drops against Euro by 9.55

:rotfl:
prob sooner than that :cool: !!

inspector_monkfish

touching 1.08



[08:52 EUR/GBP: Weighed Down by Swiss Bank Supply] London, March 24. Swiss bank
supply is being flagged as a factor in the EUR/GBP fall to an eight-day low of
0.9259. Sell stops were tripped on the break below 0.9275.
0.9285 (yesterday"s low) is now a resistance level. Today"s Asian session top
was 0.9357.

UK inflation figures for February will be unveiled at 09:30GMT. Annualized
RPI is forecast down 0.8%--its first negative reading since 1960, having been up
0.1% in January. Annualized CPI inflation is forecast to fall to +2.6%, from
+3.0% in January. Note that the December and January annualized CPI numbers both
came in higher than expected.

BoE Governor Mervyn King, BoE Deputy Governor Paul Tucker, BoE Chief
Economist Spencer Dale and outgoing MPC members David Blanchflower and Tim Besley
are slated to address the UK Treasury Select Committee from 09:45GMT re: last
month"s Quarterly BoE Inflation Report.

inspector_monkfish

09:00 24Mar09 DJN-DJ EURO-ZONE JAN ADJ CURRENT ACCOUNT DEFICIT EUR12.7B
09:00 24Mar09 DJN-DJ EURO-ZONE DEFICIT WAS EUR7.6B DEC
09:00 24Mar09 DJN-DJ EURO-ZONE JAN PORTFOLIO INVESTMENT OUTFLOW EU3.3B
09:00 24Mar09 EURO-ZONE JAN DIRECT INVESTMENT OUTFLOW EUR19.5B
09:13 24Mar09 DATA SNAP: Euro-Zone Current Account Deficit Widens In Jan

FRANKFURT--The euro zone's current account deficit widened more
than expected in January, as deficits in both goods and current transfers grew
compared with December, data from the European Central Bank showed Tuesday.
The current account was EUR12.7 billion in deficit in January, compared with
a revised deficit of EUR7.6 billion in December.
The outcome was a surprise, as economists surveyed by Dow Jones Newswires had
forecast the deficit would widen to just EUR10.0 billion in January.
The December deficit was revised from an originally reported EUR7.3 billion.

inspector_monkfish

3mins to go
trading at 1.0815

inspector_monkfish

09:30 24Mar09 UK inflation unexpectedly rises in Feb, BoE must explain

LONDON, March 24 - British consumer price inflation rose unexpectedly to 3.2 percent in February, official data showed on Tuesday, forcing Bank of England Governor Mervyn King to write a letter explaining why it remains so far above the 2 percent target.

The Office for National Statistics said retail price inflation eased less than expected to stand flat on the year. That was the weakest reading since 1960, but confounded expectations the measure would fall into negative territory.

Analysts had expected the headline CPI figure to ease to 2.6 percent from 3.0 percent in January.
February's unexpectedly strong figure means that King will have to explain to finance minister Alistair Darling why inflation remains strong and what action the central bank will take.

However, policymakers may view the pick-up in prices as temporary at a time when the economy is slowing sharply.
Indeed some analysts expect consumer price inflation to fall into negative territory later this year as the downturn continues and last year's energy price hikes fall out the statistics.

The ONS said the biggest upward impact on inflation came from food and soft drinks, with the prices of vegetables showing particularly strong rises.
Transport prices also rose by more than a year ago, reflecting a rise in the price of petrol of 3.2 pence per litre between January and February, the ONS said.
Lower interest rates and housing costs, however, helped to push down retail price inflation to zero.