Lanzarote Relocation

Hi All,

Here is an update of what’s been happening in the Currency Markets throughout October with the Euro.

UK’s August manufacturing and industrial production figures revealed that more companies than usual had taken the traditional summer break for maintenance leaving the monthly figures down 2% or more and the annual declines at over 11%. Despite manufacturing representing the minority component of GDP (Gross Domestic Product), this carried more weight in the midst of the sterling gloom. As expected, the Bank of England was careful not to risk a full scale run on the pound by suggesting another extension of quantitative easing was likely but they may have to confront this dilemma in coming months.

The highest RICS (Royal Institution of Chartered Surveyors) reading since May 07, told us a net 22% of surveyors had seen a rise in house prices in their area, another sign of strength for the housing market from this key leading indicator. The BRC (British Retail Consortium) retail survey posted a 2.8% rise in like-for-like sales in October and the UK unemployment data confounded the doomsayers by showing a slowdown in the jobless numbers. But GBP/EUR drew little comfort from this data, or from a fall in the German ZEW survey, posting a new 7 month low at 1.0610.

GBP/EUR climbed steadily to post 1.11 mid month as markets awaited confirmation that the UK economy had emerged from recession……..The shock disclosure that we were in fact enduring the longest post war recession, at 6 consecutive quarters, after a contraction of 0.4% in Q3, dumbfounded every economist polled ahead of the figures and clearly the Bank of England’s own forecasts. It prompted several economists to suggest that there were serious errors in the figures and that upward revisions would eventually declare a belated end to the downturn in Q3. On this news Sterling fell immediately two and a half cents to 1.0850.

Last week data showed that Eurozone consumer prices ease in October for a fifth straight month, unemployment ticks up to 9.7%.

Current Central Bank Rates:

Europe: 1.00% – European Central Bank (next meeting 5^th November)
UK: 0.50% – Bank of England (next meeting 5^th November)

GBP/EUR Highs & Lows of October:

High: 1.1222
Low: 1.0625

A movement of: 5.62%

Difference this would make on £200k

High: €224,440
Low: €212,500

A difference of: €11,900

Whilst FX isn’t the most thrilling of subjects, the sooner you begin to think about your money transfers, the more likely you are to make your money go further.

The details expressed in this transmission and accompanying documents are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. HiFX plc accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information. HiFX is a limited company registered in Spain. Registered
number: B92699743. Registered office: C/Azaleas 51, Bajo Dcha, 29660 Nueva Andalucia, Marbella, Malaga, Spain

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