08/31/2010 Dollar Strengthening as Investors Avoid Risk
Similarly to last week, currency movements in all major currencies this week are likely to be dominated by economic news coming out of the USA.
There is a continuing trend of poor US data bringing down currencies seen as risky – particularly the Euro, and pushing up currencies seen as ‘safe’ including the Japanese Yen and US Dollar itself; news from the US is continuing to be seen as a key indicator of the global situation in general which means that negative economic data from the nation is ironically not bringing down the Dollar but is making property prices cheaper.
US data this week will therefore be important with a large amount of news releases from consumer confidence on Tuesday, mortgage applications on Wednesday, jobless claims on Thursday and earnings data on Friday. For those purchasing property in the US, a strengthening Dollar means it may be best to fix an exchange rate in advance. Alternatively, it is possible to speak with a currency broker and set a realistic target rate of exchange so that you can be informed when this is achieved.
The Pound is experiencing volatility as the hype around the slowing UK recovery grows. Sterling has begun the week by dropping against the US Dollar and Euro following a report by the National Federation of Housing which suggests that UK home owners will experience another four years of negative equity. Manufacturing and construction data on Wednesday and Thursday may bring more movement.
For further advice or how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Ernie Enver of Currency Solutions on +44 (0) 207 740 0000 or by clicking HERE to leave an enquiry.
P4P Comment
With dollar strengthening, it's time to buy one of our American foreclosed properties, which are renovated and tenanted. The rent will be paid in the appreciating US dollar.
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