Tag Archives: rate

Fitch upgrades China’s growth rate due to strong export recovery & global demand

Ratings agency Fitch revised China’s GDP growth rate projection from 8% to 8.4% on Thursday, citing strong export recovery and global demand.

The country’s economic rebound to 6.5 percent in the fourth quarter of 2020 was described as “a remarkable achievement in the context of the pandemic.” Fitch said it reflected China’s success in containing the virus, as well as strong investment growth and a boost to net trade as exports rebounded very rapidly from mid-year and services imports collapsed.

China is the only major economy that is starting to normalize macroeconomic policy settings, where the fiscal deficit is being scaled back and credit growth is slowing as the economic recovery matures, said Fitch’s chief economist, Brian Coulton.
Also on rt.com China’s foreign trade reviving global recovery, experts say
The agency has also updated its forecast on the global GDP growth – from 5.3% in its December’s projection to 6.1%. It said the main driver of the global forecast revision was the much larger than expected fiscal stimulus package recently passed in the United States.

The $ 1.9 trillion stimulus represents more than 2.5% of global GDP, according to Coulton. “The pandemic is not over, but it is starting to look like we have entered the final phase of the economic crisis,” he said.

For more stories on economy & finance visit RT’s business section

RT

Pound euro exchange rate set for ‘optimistic’ BoE outlook amid ‘UK’s economic recovery'

The pound to euro exchange rate has been fighting to get above the 1.17 mark in recent weeks, as positivity mounts about the UK’s ongoing roadmap out of lockdown. Today, the Bank of England’s Monetary Policy Committee is due to meet, which could result in some change for the pound.
Though it could see GBP shaken, and possibly even lose some of its current strength, one expert suggests it may also spark an “optimistic note” about the UK’s “economic recovery”.

The pound is currently trading at a rate of 1.1675 against the euro according to Bloomberg at the time of writing.

Michael Brown, currency expert at Caxton FX spoke with Express.co.uk to share his insight into the current exchange rate.

“Sterling-euro remains well-confined to the recent ranges, once again rejecting an attempt to move above the 1.17 handle yesterday, though also finding buyers fairly rapidly around 1.1650,” he said.

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“Amidst an expected rapid recovery and rising bond yields, investors will be keeping a close eye on the Bank of England’s policy decision tomorrow, which could trigger currency volatility in the afternoon.

“For now GBP/EUR is circa 7 percent higher than six months ago.”

So, what does this mean for travel money?

For now, Britons are not able to jet off on holiday under the current lockdown rules.

However, as Boris Johnson’s roadmap out of lockdown continues to move ahead, some overseas leisure travel could resume from May 17.

While it might be tempting to switch your travel money while rates are decent, one travel money expert has pointed out this might not be the wisest idea.

James Lynn, co-CEO and co-founder of travel card Currensea, explained: “It may be tempting to take out foreign currency in anticipation of a future holiday, while the exchange rate is favourable.

“However, I would advise against this. Market movements are often more marginal in reality than they appear.

“’

“Once we are allowed to travel again, this will signify the end of the COVID bump and I anticipate this will mean the pound has improved even more significantly than the level it is at today.”

For those who need to travel for essential reasons, many high street travel money firms are offering exchanges online.

The Post Office Travel Money is offering a click and collect service for its customers.

It is currently offering a rate of €1.1266 for amounts of £400 or more, and rates of €1.1488 for amounts of £1,000 or more.

Pound euro exchange rate ‘in poor fashion’ while ‘backing away’ from 1.17 handle

After a period of increase for the pound to euro exchange rate, sterling has begun the week “in fairly poor fashion” according to one financial expert. Though there are few major developments anticipated to shake the exchange rate in the next few days traders are said to be keeping a close eye on the upcoming “Bank of England (BoE)” decision due on Thursday.
The pound is currently trading at a rate of 1.1610 against the euro according to Bloomberg at the time of writing.

Michael Brown, currency expert at Caxton FX spoke with Express.co.uk to share his insight into the current exchange rate.

“Sterling started the week in fairly poor fashion against the common currency, backing away from resistance around the 1.17 handle, this morning trading closer to the 1.16 mark,” he said.

“The move appeared to have little in the way of fresh narratives around it, and likely owed to the fairly broad-based sterling weakness that was evident yesterday.

READ MORE: Holidays: France, Italy, Spain, Greece and Portugal latest FCDO advice

“So far, the central bank has followed a similar stance to the Fed in interpreting the jump in yields as a natural response to a healthier economic outlook, particularly given the UK’s rapid vaccination rollout relative to other nations.

“Nevertheless, with government borrowing expected to continue soaring this year, sharply rising long-term borrowing costs, tightening financial conditions, could be detrimental to the economic recovery and verbal intervention by the BOE may be needed to try and calm bond markets.

“GBP/EUR continues to lurk near the €1.17 handle, over 1% stronger month-to-date, but currently experiencing resistance around this zone.”

So, what does this all mean for travel money?

Currently, Britons can not jet off on leisure holidays under the ongoing lockdown rules.

However, hope has been spared that some international travel could resume as soon as May 17 if Prime Minister Boris Johnson’s “roadmap” out of lockdown goes as planned.

Many travel firms, including easyJet, have already reported a spike in bookings since the PM’s announcement.

While it may be tempting to switch travel money in advance, particularly while the pound sits close to the 1.17 mark, one travel money pro has warned this may not be as lucrative as you first assume.

James Lynn, co-CEO and co-founder of travel card Currensea, explained: “It may be tempting to take out foreign currency in anticipation of a future holiday, while the exchange rate is favourable.

“However, I would advise against this. Market movements are often more marginal in reality than they appear.

“’

“Once we are allowed to travel again, this will signify the end of the COVID bump and I anticipate this will mean the Pound has improved even more significantly than the level it is at today.”

Pound euro exchange rate ‘just shy of 1.17 mark’ but BoE ‘fireworks’ may force change

The pound to euro exchange rate hasn’t moved much over the weekend, still nearing the 1.17 mark. One financial expert has warned sterling has little “fresh impetus” to push further this week.
However, the Bank of England (BoE) is set to announce its March policy on Thursday, which could cause “fireworks”.

The pound is currently trading at a rate of 1.1664 against the euro according to Bloomberg at the time of writing.

Speaking exclusively to Express.co.uk, Michael Brown, currency expert at Caxton FX shared his insight into the current exchange rate.

He said: “Sterling begins the week practically unchanged from where it ended the last, just shy of the €1.17 mark, and lacking fresh impetus to push on a break that barrier.

READ MORE: Benidorm: Express readers divided over appeal of Spanish resort

One way this may happen is with the introduction of vaccine passports or, as the EU has suggested, a “digital green pass” storing a traveller’s vaccination information.

So far, this has not been confirmed, yet many Britons have already booked up their holidays for later in the year.

It may be tempting to exchange travel money while rates are particularly favourable.

However, one travel money expert has warned this might not actually be a wise decision.

James Lynn, co-CEO and co-founder of travel card Currensea, explained: “It may be tempting to take out foreign currency in anticipation of a future holiday, while the exchange rate is favourable.

“However, I would advise against this. Market movements are often more marginal in reality than they appear.

“’

“Once we are allowed to travel again, this will signify the end of the COVID bump and I anticipate this will mean the Pound has improved even more significantly than the level it is at today.”

Despite this warning, according to research from money.co.uk, website traffic searching for pound euro exchange rates have increased by 143 percent.

James Andrews, personal finance expert at money.co.uk said: “With Greece announcing it will open its borders to tourists from mid-May and exchange rates rising over the last few days, it’s very tempting to grab the first deal you see that looks decent.

“However, no matter how good one particular deal looks, you always need to compare offers to make sure you’re not wasting your money – the best deals will have a good exchange rate with the lowest additional charges like delivery fees.

“Take your time, and compare a wide range of providers before you make your purchase”

The Post Office Travel money is one high street brand which offers travel money exchanges.

The Post Office is currently offering a rate of €1.1215 for amounts of £400 or more, and €1.1436 for amounts of £1,000 or more.

Covid vaccine: Diabetics offered jab that reduces transmission rate by half

However, if it doesn’t come through, Professor Powis urges you to “get on that booking system” by contacting your local GP centre.

“We want to get through the top nine groups by April,” he said, meaning the over 40s should be vaccinated from that point forward.

However, Professor Powis is aware that vaccinations “are always dependent on supply”.

“We have more supply coming in the next week or two,” he said, but admitted “we will see up and downs with supply”.

Pound euro exchange rate: Sterling still ‘yet to break above’ 1.17 handle against the euro

However, Mr Brown was on Wednesday hopeful that sterling could be likely to climb further in the coming days.

He said: “The pound continues to benefit from the UK’s impressive covid vaccination programme and hopes that it will lead to a faster economic reopening.”

George Vessey, UK Currency Strategist at Western Union Business Solutions, also gave his analysis on Wednesday.

He explained: “Central banks like the US Federal Reserve and the Bank of England have downplayed the rise in bond yields thus far, whilst the European Central Bank (ECB) is likely to at least verbally intervene, or possibly increase asset purchases this Thursday to cool the bond market rout.

“Investors are becoming more optimistic about the global economic rebound,” Mr Vessey added.

Pound to euro exchange rate 'promising' as GBP on 'steady ascent' – travel money latest

Vessey added: “GBP/EUR could edge closer towards fresh 13-month highs as Euro demand continues to fade.”

Looking at the week ahead, he said: “On the data-docket this week, Friday is a short-term indicator day – the UK reveals monthly GDP results, industrial & manufacturing production, and the trade account.”

Vessey continued: “Volatility in bond markets has sent shockwaves through equity and FX markets over the past few weeks, but the bond sell-off should be contained with strong verbal reiteration from central bankers in the coming days.

“The successful vaccination story so far, coupled with easing lockdown measures are both boosting inflation expectations as investors bet on pent-up consumer demand driving prices higher during the economic recovery cycle.”

India’s unemployment rate drops to pre-Covid levels

The Centre for Monitoring Indian Economy (CMIE) said on Thursday that the nation’s unemployment rate stood at 6.9 percent last month, which is much lower than the 7.8 percent clocked in February 2020.

“The unemployment rate has recovered to its pre-lockdown levels. However, recovery in the labor force participation rate and the employment rate remain significantly lower than their levels before the lockdown,” the CMIE said in its weekly analysis. 

According to the data, the labor participation rate was 40.5 percent in February 2021. That’s slightly lower than the 40.6 percent recorded in January 2021 and 42.6 percent in February 2020. “This means that the proportion of working age people who are employed or are unemployed and are actively seeking employment has declined,” the CMIE said. 

Meanwhile, the employment rate dropped to 37.7 percent in February compared to 39.4 percent in 2019-20. “The slide in the employment rate over the last three years continues. The rate has recovered from the steep fall earlier in fiscal 2020-21. But it has merely reverted to its trend of a steady fall that was established before the lockdown.” 
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The CMIE further said that the count of the employed has declined quite sharply in the period. According to its research, some 405.3 million persons were employed on average during July-February of the previous fiscal year. To compare, around 395.2 million persons were employed during the corresponding period of the current year.

“So, the post-lockdown period is characterized by a 2.5 percent fall in employment and 6.2 percent fall in the count of the unemployed. This translates into a 2.8 percent contraction of the labor force,” the CMIE added.

For more stories on economy & finance visit RT’s business section

RT

Pound euro exchange rate ‘treads water’ before ‘market moving’ Budget – travel money tips

Chancellor Rishi Sunak is set to announce his latest Budget today, explaining how he will provide support for the nation as it emerges from its third national lockdown in the coming months. While traders anticipate the news, the pound continues to hold its position above the 1.15 mark against the euro.
However, it is likely to see some changes as news of the Budget plans emerge.

The pound is currently trading at a rate of 1.1551 against the euro according to Bloomberg at the time of writing.

Michael Brown, currency expert at Caxton FX, spoke exclusively to Express.co.uk to share his insight into how the current exchange rate.

“Sterling continues to tread water in the mid-1.15s, with the early part of the week having brought little for investors to get their teeth into,” he explained.

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“One may assume that today’s Budget could be a market mover, and there is a possibility that it will be; however, past Budgets have never been a huge event for the FX space, and with so much appearing to have been leaked in advance, the majority of announcements are probably priced in already.

“Final services PMIs are also due, though can be safely ignored.”

According to George Vessey, UK currency strategist at Western Union Business Solutions, GBP investors are “unnerved” by the approaching news from the Chancellor.

“The highlight anticipated UK Budget will be announced by Chancellor Rishi Sunak, with all eyes on how the government will support businesses and households through the pandemic whilst unveiling plans to balance public finances in the future,” he said yesterday.

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“Sterling is sliding though, dogged by the threat of new virus variants and general risk appetite waning.

“Talk of tax increases is likely unnerving GBP investors too as a shift in fiscal strategy too soon could create an unnecessary headwind for the recovery.

“Alongside the Budget, Mr Sunak is expected to publish a review of expected proposed changes to make the UK a more attractive place for entrepreneurs to take companies public – competing with the likes of New York, Amsterdam and Frankfurt.”

He continued: “Solid manufacturing expansion in Europe is helping the bloc’s recovery and is a positive sign for the expected growth rebound.

At the moment many Britons are unable to travel under the currency lockdown restrictions which state travelling for leisure is “illegal”.

However, with the Global Travel Taskforce set to be reinstated within the coming months, there is hope ahead for holidays.

easyJet and Skyscanner have already reported a surge in bookings for the summer months after the Prime Minister suggested some international travel may go ahead from May if the Global Travel Taskforce deems it safe and possible.

In anticipation, some hopeful holidaymakers may be looking to take advantage of the current rates and swap money in advance.

James Lynn, co-CEO and co-founder of travel card Currensea, explained: “It may be tempting to take out foreign currency in anticipation of a future holiday, while the exchange rate is favourable.

“However, I would advise against this. Market movements are often more marginal in reality than they appear.

“’

Pound euro exchange rate ‘calmer’ and ‘firmer’ ahead of Rishi Sunak budget speech

The pound to euro exchange rate has began the week on a much “calmer note”, following a “chaotic trade to end last week”. Sterling is currently trading above the 1.15 handle and is heading towards Chancellor Rishi Sunak’s Wednesday Budget announcement on a “firmer” foot according to one expert.
The pound is currently trading at a rate of 1.1577 against the euro according to Bloomberg at the time of writing.

Speaking exclusively to Express.co.uk Michael Brown, currency expert at Caxton FX shared his insight into the current exchange rate.

He said: “After somewhat chaotic trade to end last week, the pound finds itself on both calmer and firmer footing this morning, once more trading above the 1.15 handle, as attention begins to shift to Wednesday’s Budget.

“Today’s manufacturing PMI data shouldn’t bother the market too much, with attention more focused on leaks ahead of Chancellor Sunak’s aforementioned speech.”

READ MORE: Pound to euro exchange rate plummets amid ‘awful time’

“You must not travel, including abroad, unless you have a legally permitted reason to do so.

“It is illegal to travel abroad for holidays and other leisure purposes.”

Furthermore, under current lockdown rules many high street travel money retailers remain closed.

Luckily, some of them are offering online click and collect services, including the Post Office Travel Money.

On its website, The Post Office Travel Money says customers can “order euros online – collect in two hours from your nearest branch or get next-day delivery.

The Post Office Travel Money is currently offering rates of €1.1097 for amounts of £400 or more, €1.1259 for amounts of £500 or more and €1.1316 for amounts of £1,000 or more.

With Prime Minister Boris Johnson suggesting some international holidays could be given the go ahead from May 17, some Britons might be considering buying travel money while the rates are favourable.

However, one expert has warned this is not necessarily a good idea.

James Lynn, co-CEO and co-founder of travel card Currensea, explained: “It may be tempting to take out foreign currency in anticipation of a future holiday, while the exchange rate is favourable.

“However, I would advise against this. Market movements are often more marginal in reality than they appear.

“’

“Once we are allowed to travel again, this will signify the end of the COVID bump and I anticipate this will mean the Pound has improved even more significantly than the level it is at today.”