The FairFX Foreign Currency Exchange Blog

Seeking sunshine? Head to Puerto de la Cruz

Fri, 17 May 2013 09:49:49 GMT

Renowned by some for sun, sea and sangria, the Canary Islands, or more specifically Tenerife has been attracting a young crowd in the last few years. But head to the north coast, about an hour’s drive from the airport to Puerto de la Cruz and uncover a small town, worlds apart from its counterpart in the south.

Historically reserved for the wealthy seeking some sunshine in the winter months, this former fishing village is bustling with nautical history. Walk the cobbled streets and find yourself relaxing on the volcanic sands or dining in one of the traditional Canarian restaurants, serving local cuisine at an affordable price. Situated at the foot of the La Orotava Valley and a stone’s throw away from the Atlantic Ocean, you wont be fighting for a place to lay your towel as this town also hosts an array of botanical gardens, colonial-style cafes and elegant plazas.

If you’re looking for tranquility and culture then look no further as this rural retreat is composed of traditional architecture in quaint colourful houses, historic churches and welcoming locals. Surrounded by a lush green, tropical landscape and offering local food and wine it’s no surprise that Puerto de la Cruz boasts a high rate of return visits.

Flights are relatively cheap depending on provider, with transfers costing as little as £10pp. Hotels vary from small traditional apartments to modern luxuries, complete with private pools at no more that £200 a week for two people. We stayed in a clean modern apartment with an adequate kitchen, balcony overlooking the town and with a two second walk to the pool. Most of the cafés we visited and our apartment had wi-fi, which meant we could easily top-up our cards when we were running low. The staff was more than accommodating, recommending places for us to visit, restaurants to eat out at and local entertainment in the evening – we were told the Spanish Elvis shouldn’t be missed, but after two renditions of Tina Turner we finished our local wine – which I must add was exquisite – and took a stroll along the port.

My partner and I found ourselves eating out every night, as the quality of food for the price was more than justified and we had no problem using our FairFX Euro card. On our first night we ate out at Pomodoro restaurant, encased in the cliff face, serving not only amazing food but also views the mountains and ocean. Throughout the day we would visit the local cafes for a breakfast of fresh fruit, pastries or if you’re in need of something to remind you of home there is the occasional café offering a fry-up. For lunch and dinner we ate fresh seabass with papas arrugadas (wrinkly potatoes) with mojo picón (a garlic and tomato sauce) and vegetables, goats cheese salad and potaje (a traditional stew). We found it was easier carrying a card than trying to work out how much cash to take with us each day, especially as some days the weather reached 30 degrees and we found ourselves not needing to eat so often and instead indulging on a cocktail – it was our holidays after all.

In the day we would sun ourselves at the beach or by the pool, and walk around the gardens and explore the network of tiny side streets. There are local supermarkets which sell toiletries and fresh food for a tiny price, I recommend waiting until you get there to buy any shampoo, shower gel or suncream as you’ll save yourself a small fortune. We also found that everything in Puerto de la Cruz is within walking distance, and if not, then a bus fare would get you anywhere you needed to go for no more than two euros.

Don’t be put off by not speaking the language, we found most people could speak English, and if not they were more than prepared to try. I even picked up some Spanish phrases whilst I was away, but you can get by on ”Hola” (Hello), “Gracias” (Thank you) & “No comprendo” (I don’t understand)!

Since visiting this little slice of paradise I’ve been recommending it to anyone that will listen and if you visit Puerto de la Cruz I hope you enjoy it as much as we did.

Your top 5 summer holiday destinations

Fri, 03 May 2013 11:29:53 GMT

With summer fast approaching we asked some of our customers where they’ll be travelling to for a bit of well deserved downtime.

Florida, United States

A favourite amongst many Brits, you can’t go wrong with Florida for a summer holiday break! With the Cuban-flavours and party vibes in Key West, the exhilarating theme parks in Tampa and the endless beaches in Miami, there is more to do in Florida than one holiday could possibly cover. Which is why so many keep going back for more…

Your entire holiday could easily be spent in Orlando exploring everything that Disney has to offer, not to mention the golf courses but try not to miss the less “touristy” parts of Florida, such as Everglade City where the locals run airboat trips to feed the alligators and regale wide-eyed foreigners with stories of lost limbs and moonshine.

Your US Dollar Card will see you through your entire Florida trip, with more establishments now accepting cards than not. With the well-known US tipping culture, it’s always handy to have cash to hand, so be sure to top up your card and simply draw cash from an ATM when you arrive.

Barcelona, Spain

If you see yourself as a bit of a culture vulture then Barcelona will serve you well. Famous for sun, sangria and Gaudi, you get the best of both worlds here as it hosts both city and beach landscapes. Head to Sagrada Familia or Park Guell to fully appreciate all Gaudi has to offer; don’t be surprised if you spend the whole day here as it really is a beautiful park. Just like London, Barcelona has its own ‘Gherkin’, orTorre Agbar, a 32-storey building which lights up at night and can be seen throughout the city.

Take a walk to Las Ramblas, the heart of the city, for some shopping or a bite to eat at one of its many traditional Catalan restaurants. Close to the port, you’ll find a Mediterranean diet of seafood is commonplace, but if this doesn’t ‘float your boat’ don’t be put off as they also serve a fine selection of fresh salads, fine wines and sweet treats. Being a city at heart, you’ll have no problem using your FairFX Euro Currency Card in restaurants, bars and shops.

Lake Como, Italy

A haven of tranquillity, style and romance, Lake Como sits only a few miles north of Milan, close to the Swiss border. Regarded as the heart of Italy, Como is home to amazing cuisine, a mountainous landscape and a handful of celebrities, including actor George Clooney, Richard Branson and formerly Donatella and Gianni Versace.

We recommend taking the time to visit any of the beautiful little side street cafes for some proper Italian coffee. Take a stroll along the lake and peek into the luxurious fashion boutiques and art houses. For sundowners, do it James Bond style as Como was the filming location for Quantum of Solace and remember to flash your FairFX Prepaid Euro Card to impress the crowd.

Dalyan, Turkey

If you’re looking for a quiet week or two of relaxation then head to Dalayan, situated on the south west of Turkey, a stones throw from the Mediterranean coast. Not only is this tiny piece of paradise home to the carretta carretta (loggerhead turtles) but also the Sultaniye hot springs, mud baths and the ‘cotton castle’, a natural formation of minerals looking uncannily like snow. Once voted the most beautiful beach in the world and with temperatures averaging 27º in the height of summer, you’ll find the local apple tea a refreshing accompaniment to your sunbathing stints.

If you’re after an adventure you can play captain for the day by hiring a boat and taking a trip down the river to see the Lycian Tombs; thought to have been carved out of the rock face in 400BC.

You can use your FairFX Anywhere Card in restaurants, bars and shops, but if you head to the local markets take cash as most of the locals like to deal this way, and it’ll give you a chance to practice your haggling skills. Golden tip: don’t engage in negotiations if you’re not planning to buy it!

Santa Eulalia, Ibiza

When you first think of Ibiza you probably think of a young crown partying long into the night, but like anywhere there are a few hidden gems tucked away.

Santa Eulalia offers a quieter alternative away from plastic sun loungers and sky-high hotel complexes; instead you’ll discover a beautiful unspoilt coastline with a palm-lined promenade. The great thing about Santa Eulalia is that everything is within walking distance; bars, spas, shops and restaurants which serve a wealth of traditional dishes to suit visitors worldwide. You can spend your free time shopping in the plazas for designer souvenirs or head to the craft markets along the promenade lined with street artists and have your portrait painted. If you’re looking for something to do while everyone is at siesta why not hire a boat at the marina and visit one of the private coves, only accessible by sea.

For a lively evening atmosphere that doesn’t involve polyester outfits and Red Bull, head to Calle San Jaime main street to eat, drink and relax.

"Not a FairFX member? Well, if you're looking for the best currency rates - you should be!"

Fri, 26 Apr 2013 08:56:40 GMT

The FairFX Mobile Banking App provides a seamless, user-friendly interface to help FairFX Currency Card owners manage their money with ease.

It's clear from the moment you login that this app has been designed with travelling customers in mind, by avoiding an over-complicated app and focusing on the main customer needs - to view and top-up their balance, and report a card lost or stolen.

The interface uses an aesthetically pleasing graphic of the Currency Card with the corresponding card name, number and expiry date. A useful addition to the main interface is the top bar, which displays up-to-date exchange rates around the world, just to remind you of the great rates you are getting from FairFX!

Got a friend or colleague who is also a Currency Card owner? Need to send them money on the go? No problem. With the FairPay feature you can quickly and easily send money to anybody who also has an account, with a real-time currency conversion as you type in the amount.

Overall the FairFX Mobile Banking App is a must-have for FairFX members who own a smartphone or tablet. Not a FairFX member? Well, if you're looking for the best currency rates - you should be!

Ashley Mosuro
Head of Creative for the Aluminati Network Group
www.mosuro.co.uk

Guest blog - Beijing, the new city that never sleeps

Thu, 25 Apr 2013 14:15:14 GMT

Thursday, 25th April 2013

The thirteen-hour journey from London to Beijing (stopping off in Dubai) is long but exciting for a lone traveller. When I arrive the heat immediately hits me, it seems I’ve been spoilt with the air conditioning facilities on the UK’s public transport. But this is not Europe, this is Asia and unbeknown to my sleepy eyes and tired limbs I’m not quite ready for bed.

Stepping off the coach I am greeted by a number of young students from Beijing Normal University, keen to give me and countless other tourists a taste of truly authentic Chinese cuisine. This canteen styled restaurant is where the locals go to eat and is supposedly the best dining experience in central Beijing. It soon becomes apparent that loyalty and family is important to the Chinese as those working in this restaurant are all in some way related to one another. Everyone looks out for one another here. It’s expected in China, when dining out with a large number of friends and family that you order a range of dishes to create one enormous visual feast of exotic and raw delicacies. Everyone gets stuck in, dunking their raw meats into their own pot of boiling water, kept alight by a single flame. The Chinese takeaway we see back in Britain is almost unrecognisable in Beijing, pig brain, pig heart are some of the more identifiable translations. Although the popular sweet and savoury dumplings filled with pork and vegetables that can be found on almost every street corner more than make up for my lack of recklessness. Food in Beijing is plentiful and affordable with cocktails cheaper and far tastier than anywhere I’ve ever been before.

As day turns to night China’s friendly faces and open armed hospitality is more prevalent than ever. Supermarkets stay open late, as do young children playing in the streets, watched over by their adoring grandparents. Just a short taxi ride away we find a small intimate bar with an open top terrace in an excluded street, this is where they younger crowds come to sing karaoke, a little bit of Bob Dylan and Bob Marley. The pace here is slow compared to the quick streets of London, the locals shuffle instead of walk and somehow they are attentive without ever raising an eyebrow. However like the UK, the traffic in the city never ceases.

The next day we take a coach out of Beijing and I notice for the first time the sheer scale of the city. High-rise city structures made from steel and glass, a powerful reminder of the hard working Chinese ethic. It’s evident just how far China, a super power, has come in its struggle for global supremacy. The tiny apartments compacted into matured buildings; some with little room for windows cower in the shadows of these enormous skyscrapers. But if these locals are in anyway suppressed, as sometimes portrayed in the media, it doesn’t show, everywhere we go they are proud to show off their history, share with us their ancient traditions and celebrations.

Escaping the hectic traffic of inner city Beijing, I take time out to explore Beihai Park. I’ve discovered one of the best-preserved imperial gardens in the world, just northwest of the Forbidden City. Peaceful and reflective, this ‘heaven on earth’ shelters an array of beautiful palaces and Buddhist temples. The garden is a world away from the eerie atmosphere felt during my evening exploring Tiananmen Square. This political hotspot, iconic to many following the 1989 mass student demonstrations gone terribly wrong are now fiercely protected by roaming guards. The exquisite beauty found at The Temple of Heaven and The Summer Palace cannot be justified by words, they are simply better left unsaid and even better left to discover.

My last night in Beijing, the new city that never sleeps was an unforgettable mind altering experience and one I will never forget. A two hour coach ride away to The Red Theatre to see The Legend of Kung Fu was undoubtedly the cultural highlight of my trip. It undoubtedly took years of skilful training to master this heartfelt performance by a group of incredibly talented martial art enthusiasts. The theatrical performance takes you on an emotional journey through one young boy’s passage into manhood aided by hypnotic dream like music and elegant dance, oh and the odd live flying bat thrown in was just a small handful of what lies in wait for you.

Sophie Yorke
FairFX Cardholder
London

Tue, 23 Apr 2013 09:43:00 GMT

FairFX App Nominated of Best Technology Initiative of the Year 2013

Thu, 29 Nov 2012 10:13:44 GMT

The FairFX iOS App has been shortlisted this week for the Best Technology Initiative of 2013 at the Card and Payments Awards.

As well as the award nomination announced on Monday, the App received a write up in the Daily Telegraph on Saturday and is quickly getting recognition from the finance industry for its unique offerings.

The App is the first in the UK to allow customers to manage their prepaid currency cards from their iPhone or iPad. As well as viewing balances, customers can top-up their cards, view mini statements and report their cards as lost or stolen in an emergency.

The FairFX App is also the first to provide an International Money Transfer service where customers can transfer funds from their bank or a credit/debit card, directly to beneficiaries in a range of currencies. They benefit from the competitive rates FairFX offer and there is no need to speak to a broker. The transaction can be carried out at any time of day or night, regardless of time zone making International Transfers easier than ever before.

The awards will take place on February 6th.

Guest Blog from a Guest House in Tuscany

Thu, 04 Oct 2012 14:59:30 GMT

Maureen is a FairPay user, transferring money from the UK to Italy on a regular basis. She runs a guesthouse called La Balconata in the heart of Tuscany - http://labalconata.com/

10 years ago I made the biggest decision of my life by upping and leaving my rural Kentish town and moving to Tuscany.

Leaving my friends, family and beautiful home behind to move to a rundown farmhouse on top of a mountain may sound a little extreme however, it’s now a decade later and I have never been happier.

I have spent the last 30 years working for myself, as a freelance artist producing sculptures for the likes of Royal Worcester and Royal Doulton. Art and specifically sculpting, is appreciated more in Tuscany than back in the UK. It is here that I was first inspired many years ago when I came for a 3 week visit to see how figurines were sculpted and I ended up staying for 3 months.

In that time I learnt more than any evening class could ever teach me, I was truly inspired. Upon coming back to the UK, I was commissioned my first sculpture by Royal Worcester and it spiralled from there into my new living.

Being an artist, there is no such thing as retirement for me. I now juggle my days between tending to the terraces, sculpting and looking after guests here at the house. With help from my sons, we bought the other half of the farmhouse here in Tuscany and now have converted the whole building into a beautiful home and guest house.

Located on the edge of Garfagnana National park and overlooking the valley and town of Bagni Di Lucca, our tranquil little corner of Tuscany is unspoilt and a true area of outstanding natural beauty. We are close to the historic towns of Lucca, Barga and Castelnuovo and there are plenty of opportunities to experience the famous Tuscan cuisine, wines and culture.

I wake to the most beautiful view across the valley every day. I grow my own food on the terraces and get to meet the most wonderful people staying in the guest house throughout the year. I could not ask for anything more...”

Maureen Halson
FairFX FairPay Customer
La Balconata

If you would like to write a guest blog post to promote: your website, charity or small buisiness. Please send over 200 to 600 words and some pictures to guestblog@fairfx.com

Guest Blog Post: Why the Bird flies.

Thu, 23 Aug 2012 15:35:15 GMT

As the song goes, it started with a kiss…

After meeting my Australian boyfriend and enjoying six months or so of dating in London where we both lived, it quickly became clear that he wanted more from me. Not marriage, not a baby but a packed suitcase. After living and working hard in London for six years he had itchy feet and wanted to scratch them with a round the world trip via his Mum’s house for Christmas. It left me with a dilemma that I didn’t think I’d have to confront aged 29 having spent six years of experience climbing the corporate ladder in London.

I’m not sure if it was my love for the Australian or the photo of a beach in Thailand I stumbled upon in a magazine, but it wasn’t long before I’d made my decision to go and the longest mental to do list unraveled itself in front of me. I had a flat to move out of, a job to leave and family and friends to say goodbye to. We also had to resolve a number of financial issues and it was when our banks told us that they didn’t offer any credit or debit card facility to avoid considerable foreign exchange charges that we found out about FairFX and I had a face palm moment wondering why I hadn’t invested in one previously, even for short term travel. But I’ve since learnt that that is the wonderful thing about both travel and hindsight; they open your mind but not always when you expect it.

Since our travels began in October 2011 we have explored three continents, wake-boarded in Malaysia, scuba dived in Thailand, snowboarded in Austria and lived in our favorite city in the world, Amsterdam. Most importantly I survived meeting his (very lovely) Mum for the first time. I’ve also journeyed down a different career path as a copywriter and travel blogger after I started documenting our travels in my blog As the Bird flies…

With not one but two pairs of itchy feet in our relationship now we have no plans to stop travelling anytime soon. There couldn’t be a better time for people to see the parts of the world they want to with technology and the internet making travel easier and more affordable, all you need is a good reason to go and it’s my aim to fill my blog with these.

Frankie Thompson
FairFX Cardholder
As The Bird Flies

If you would like to write a guest blog post to promote: your website, charity or small buisiness. Please send over 200 to 600 words and some pictures to guestblog@fairfx.com

FairFX Staff's Top Travel Tips

Wed, 04 Jul 2012 11:14:01 GMT

We have had some great customers posting their travel tips on the FairFX Facebook group wall and we thought it was about time we returned the favour by sharing some of our travel tips with you for 2012.

The FairFX staff love to get away for a holiday just like anybody else. Here are some of the FairFX team we thought it was about time you met as they share their top travel tips with you for the year ahead:

Currency Fluctuations Creating Opportunities For British Foreign Property Investors

Fri, 01 Jun 2012 14:08:10 GMT

Earlier this week, Global Property Guide released a review of worldwide housing markets revealing rather unsurprisingly that Athens in Greece has seen property prices decline dramatically in the first quarter of 2012.

When the results were cross referenced by FairFX with the currency fluctuations seen over the same year against the Pound, some interesting results have been drawn for potential UK investors in property overseas.

Some country’s properties can be over 20% cheaper for Brits to buy than the same time last year.

For example, Ireland was bottom of the list with property prices falling 18.95% year on year. With the Pound strengthening by 6% against the Euro during the same period, this means a property that was valued at 200,000 Euros last year (or £176,991 at the time) is now only 165,680 Euros (or £138,066) – a total drop in price for a potential UK investor of £38,925 in just one year.

Meanwhile whilst property prices in Brazil have climbed by 25.5% in the last 12 months, due to the Pound strengthening by over 12% against the Brazilian Real; the impact of increased property prices is less severe to British Investors.

Rishi Patel, who runs the FX Blog at FairFX says “Some investors could potentially be put off investing in property abroad due to the Euro crisis at present. However, it is important for investors to look at the property markets of the individual country as well as how the currency is fairing against the Pound. Overall this will give them a much better idea of where they can get the most for their money and get a potential return.

Emerging markets such as India have seen property prices soar due to good economic growth, however the Pound has strengthened against the Rupee significantly over the same 12 months which is good news for investors looking to potentially buy property there.

Locking in great rates - Prepaid leads the way!

Fri, 11 May 2012 15:33:16 GMT

With the continuing bad weather, bleak economy news and waking up to Simon Cowell on the front pages of the papers every day, there is a tiny ray of light for the British public as they can now get more Euros to the Pound than any other point in the last 3 & ½ years!

FairFX and other prepaid providers have continually been mentioned throughout the press this week as journalists push people towards locking in the excellent rates on a prepaid Euro/Dollar card. With mentions in the Mirror, Telegraph and Independent this week, it has been a great week for raising awareness of the FairFX brand.

On the 18th April when the Euro hit 1.20, FairFX had a record breaking day of Euro orders in volume. Since Monday, we have seen even further growth as consumers continue to lock in the excellent rate as the Pound strengthens further against the Euro.

This is good news for prepaid travel providers in general as debit and credit cards do not have the facility to lock in good exchange rates in advance, meaning more consumers are becoming increasingly aware of the many benefits of using a prepaid card for travel.

Another noticeable result of the high Euro rate is that FairFX have seen a significant increase in the number of wire transfers abroad through our international money transfer service, FairPay. Clearly those with properties abroad are keen to pay their bills and mortgages whilst rates are at their best too!

Market Report 4th May

Fri, 04 May 2012 09:54:21 GMT

Sterling rose to a 22-month high against the euro on Thursday as concerns about debt and economic weakness in the euro zone pushed investors towards the relative safety of the UK currency.

Some analysts expected the pound to continue a gradual ascent, leaving it poised to rise towards levels not seen since the the collapse of Lehman Brothers in autumn 2008.

The pound shrugged off a survey showing Britain's dominant service sector grew more slowly than expected in April, which nevertheless suggested the UK economy was faring better than the euro zone. The details also showed firms' optimism rose to a two-year high and hiring picked up pace.

The euro fell as low as 81.03 pence, its weakest level since June 2010, before recovering slightly to 81.26 pence, with traders saying it was propped up by bids ahead of a reported options barrier at 81.00 pence.

Further gains would see the common currency target its 2010 low of 80.67 pence, beyond which would mark its lowest since November 2008.

The euro was helped off its lows after the European Central Bank left interest rates on hold (as expected) with Mario Draghi saying that the euro zone was set to recover this year and dampened expectations of more policy easing.

At 0930 (BST):
GBP/EUR 1.2312
GBP/USD 1.6166
EUR/USD 1.3129

There is a potential for the euro to fall further next week due to the political uncertainty that could be created by weekend elections in France and Greece.

Sterling has performed well since Bank of England minutes for April suggested chances were lessening that the central bank will opt for more asset purchases under its quantitative easing programme, given policymakers' concerns about high inflation.

BoE governor Mervyn King echoed that tone in an interview with BBC radio on Thursday, saying inflation was still too high and that the economy looked set to recover slowly this year after a weak start.
br> Economic concerns remained, however. A survey by mortgage lender Nationwide on Thursday showed British house prices fell in April by 0.2 percent, confounding expectations for a 0.5 percent rise.

Against the dollar sterling was down 0.1 percent at $1.6181, well below an 8-month high of $1.6304 hit on Monday, with analysts saying $1.63 was likely to prove a stiff hurdle.

Local elections took place in Britain on Thursday where voters may voice discontent with the current Conservative-led coalition government and its austerity measures designed to bring down the country's deficit.

News to watch out for:
The main focus today will be on U.S. jobs data, due at 1330 (BST), it is expected to show employers likely added 170,000 workers to their payrolls last month and the unemployment rate to hold steady at 8.2%

Market Report 3rd May

Thu, 03 May 2012 09:30:32 GMT

On Wednesday morning, sterling hit a 22-month high against the euro on after UK construction data exceeded expectations while the euro zone manufacturing sector contracted further and unemployment rose, highlighting the divergence between their economies.

The data fuelled safe-haven demand for the pound, which has rallied strongly against the common currency in recent months as investors diverted portfolio flows from the indebted euro zone to triple-A rated UK government bonds.

The euro dropped 0.5 percent on the day to its lowest level versus sterling since June 2010.

Falling risk appetite boosted demand for the US dollar after poor data in euro area manufacturing output. The weakness in euro area activity is also sending unemployment higher, 10.9% in March with analysts at Barclays suggesting a further rise to 11.4% in Q4.

The US dollar strength pushed GBP/USD and EUR/USD back through 1.62 and 1.32 respectively. GBP/EUR rallied on the euro-negative news to a high of 1.2326

At 9.20 (BST):
GBP/EUR 1.2297
GBP/USD 1.6178
EUR/USD 1.3155

UK construction PMI for April eased from the previous month to 55.8 but beat forecasts of a fall to 54.0. Investors were cheered by the solid figures as a slump in construction output was one reason behind the economy's contraction in the first quarter.

The construction data soothed some concerns about the fragility of the UK economy after manufacturing data disappointed on Tuesday, and raised expectations of a decent PMI reading from the dominant services sector on Thursday.

UK mortgage approvals and consumer credit data also came in above forecasts.

In contrast, euro zone PMI data showed manufacturing declined further, with Italy's reading slumping to 43.8. Meanwhile, while euro zone unemployment rose to 10.9 percent, equalling the record high of 15 years ago.

Spain's borrowing costs are set to rise by more than a percentage point at an auction of three- and five-year bonds on today, with markets watching for signs that its troubled banks are losing their appetite for the country's debt. The sale is the first since Standard and Poor's cut Spain's credit rating by two notches to BBB+ last week and follows data showing the economy has slid into its second recession since late 2009.

News to watch out for:
EUR
12.45 (BST) ECB interest rate decision is expected to remain unchanged at 1%
US
April's U.S. Challenger Layoffs survey will be released at 1230 (BST), which together with U.S. weekly jobless claims numbers at 1330 (BST) will provide pointers for Friday's key April U.S. non-farm payrolls report. April's U.S. ISM non-manufacturing index will be released at 1500 (BST).

Market Report 1st May

Tue, 01 May 2012 09:31:04 GMT

Sterling continued its surge against the euro and US dollar on Monday morning as investors continued to view the UK currency as a safer bet than the ailing euro and a softening U.S. dollar. Some gains were given back late in the session on profit taking.

Some analysts suggest that the pound's gains were becoming stretched, given the UK economy has slipped into another recession which is likely to prevent the Bank of England from tightening monetary policy for the foreseeable future.

Sterling rose to an eight-month high of $1.6304 against the US dollar which after weak U.S. growth data on Friday reinforced expectations of dovish U.S. monetary policy. The pound slipped in the afternoon down 0.1 percent on the day $1.6247.

The pound rose to a 22-month high against the euro with worries over euro zone debt markets, notably Spain, keeping investors on edge over the common currency.

At 9.15(BST)
GBP/EUR 1.2219
GBP/USD 1.6222
EUR/USD 1.3274

For the first time since the start of 2008, bonds were the only investments to provide positive returns amid renewed concern the global economy is slowing and as widening deficits in Europe threaten contagion.

In Europe, growing political opposition to austerity measures forced Italy to delay its goal of balancing the budget by one year to 2014, joining Spain in missing fiscal targets amid a worsening recession. French President Nicolas Sarkozy may be toppled in a May 6 vote and the Netherlands will hold elections in September after the cabinet resigned over spending cuts and tax increases.

News to watch out for:
UK
Manufacturing PMI is due out at 0930(BST), which analysts expect to have fallen in April to 51.5 from 52.1 in March, after figures showed the UK economy slipped back into recession last week under the weight of austerity measures.
US
Manufacturing ISM and construction figures, both due for release around 1500(BST) will be under the microscope after disappointing U.S. GDP numbers last Friday.

Market Report 30th April

Mon, 30 Apr 2012 09:27:04 GMT

On Friday, sterling hit its highest level in more than two and a half years against a multitude of currencies. Strengthened by gains against the euro and the US dollar it remained a popular alternative to the troubled common currency and the greenback.

A Spanish ratings downgrade and weak jobs data encouraged investors to seek the relative safety of the pound, lifting it to its strongest level in 22 months against the euro and its highest in nearly 8 months against the dollar.

Several analysts expect euro zone debt problems and political uncertainty to nudge the UK currency further towards the 80 pence per euro mark though worries about the UK economy linger after data showed it entered a recession in the first quarter.

The euro fell to its lowest level against the pound since June 2010. It recovered slightly to 81.53 pence after Italy successfully sold some debt, albeit at a high price, though this still left it down 0.15 percent on the day.

Sterling's next target against the euro is the June 2010 high of 80.67 pence. Beyond there would take it to levels not seen since the aftermath of the Lehman Brothers' collapse way back in the autumn of 2008.

At 9.00 (BST):
GBP/EUR 1.2301
GBP/USD 1.6287
EUR/USD 1.3241

Sterling's gains were broad-based, lifting it to $1.6259 against the dollar on Friday, its strongest since September 2011.

Weaker-than-expected U.S. gross domestic product data added to the demand for sterling versus the dollar as speculation the Federal Reserve may opt for more quantitative easing persisted.

The pound has performed well since Bank of England minutes last week suggested policymakers were unlikely to opt for more quantitative easing due to worries that inflation may not be falling as they expected.

News to look out for:
UK
There is very little data out for the UK this week with little due all week aside from a trio of Markit/CIPS PMI indexes for April, and Bank of England consumer credit and mortgage lending data on Wednesday.
US
Personal income and consumption data will be released at 1330 (BST)
Chicago April PMI data due at 1445 (BST)
The main focus this week will be on the April U.S. jobs report on Friday afternoon.