Sterling vs. Euro 28th March 2011 The weekly report

Euro28th March 2011 – Sterling vs. Euro – The weekly report.

In the build up to last week all eyes were focussed on George Osborne’s budget on Wednesday, however, in what was a busy week it was UK retail sales that most affected Sterling’s performance against the Euro.

Monday started well for the UK with Rightmove house prices showing a slight increase although movement in the market is mainly limited to the top end. The market’s reaction was limited as traders were waiting for Consumer Price Inflation (CPI) out on Tuesday.

Consumer Price inflation is a key measure of the economy that looks at the change in prices of consumer goods and services purchased by households. February’s CPI figures were expected to show a growth from 4% to 4.2% but in fact came out better at 4.4%. As expected the Pound began to gain against the Euro as the figures were interpreted that an Interest rate rise in the UK is more probable.  However there were some in the market, including currency analysts at HSBC, who believed the Pound was overpriced, saying rising inflation at a time of fiscal austerity was a reason to sell the Pound, rather than buy. As expected this curbed Sterling’s performance somewhat.

Euro Pound Graph – March 2011

Euro Pound  Graph March 2011

On Wednesday the Bank of England’s Monetary Policy Committee maintained its 6-3 split in favour of keeping rates on hold this month, seeing no major change in the medium-term outlook despite the CPI data on Tuesday. At lunchtime on Wednesday George Osborne’s budget unveiled cuts in the 2011 growth forecast to 1.7 percent from 2.1 percent as well as commenting that soaring oil prices mean inflation will remain between 4 and 5 percent this year. As Alejandro Zambrano, market strategist at FXCM commented, ‘Low growth and high inflation does not make good news for the currency’.

Despite the budget, Sterling remained relatively stable against the Euro and it wasn’t until disappointing UK retail sales were released on Thursday that we saw the Pound start to lose value. Sales in February fell 0.8% on the month against forecasts for a smaller decline of 0.6%, sharply slowing the annual rate of growth to 1.3% from a downwardly revised 5.1% in January. Added to this,  the ratings agency ‘Moody’s’, said that Britain’s triple-A credit rating could be at risk if slower growth makes it harder for the government to rein in its budget deficit.

These two pieces of information effectively threw the Pound into freefall against the Euro throughout Thursday and well into Friday with the Pound falling to its lowest level in 2011. The Pound’s fragility against the Euro was based on concerns over the state of the UK economy and uncertainty as to when rates in the UK will be raised which BOEWATCH suggests is more likely to be in August rather than July as previously thought. Whilst in the Eurozone, Trichet confirmed he planned to press on ahead with the raising of interest rates potentially as soon as April despite deep concern over some of their member states, such as Portugal, who are looking almost certain to require a bailout from the European Central Bank.

If you have yet to open a trading facility to gain access to commercial rates of exchange click here to open an exchange rate account today and an experienced trader will be in touch to discuss your requirement and offer expert market knowledge.

Bargain Bungalow for sale on Chayofita Tenerife €69950

Chayofita Costa del SilencioChayofita Costa Del Silencio Bargain 2 Bed Bargain Bungalow for sale

This Bargain 2 Bed Bungalow is for sale on the Chayofita Complex in Costa del Silencio. It has 2 bedrooms, a bathroom, living area and American style kitchen. Nice views to Mount Teide. Pets are allowed on Chayofita. Communal parking.

Bargain price for quick sale. Visit our main webpage to see all the photos of this Bargain Bungalow on Chayofita in Costa del  Silencio

Las Americas Las Terrazas Bargain Apartment for sale €110k

Las Terrazas Las AmericasLas Terrazas, Las Americas Bargain Apartment with 1 Bedroom for sale in Tenerife

Las Terrazzas has a communal swimming pool and it is close all the amenities Las Americas has to offer. Benefits include a reception facility, 24 hour security and communal parking.

Tha apartment has an open plan lounge and kitchen with a breakfast bar, glazed sliding doors to baclony, bedroom and bathroom with washing machine. Sea views down over Las Americas from the Balcony and you can also see the pool.

Las Terrazas is only a 3 minute walk to the beach.

Visit our main web page to see all the photos of this bargain apartment for sale in Las Americas.

Sterling vs. Euro – 14th March 2011

Euro14th March 2011 – Sterling vs. Euro – The weekly report.

Sterling had another poor week last week heading toward a 6 week low against the Euro. The main blow to Sterling was landed at Thursdays Bank of England meeting where the Monetary Policy Committee again voted for a hold on interest rates.

This hold coupled with the news that chief rate hawk Andrew Sentence is to step down from the MPC in May  triggered most analysts to reduce their expectation of a UK rate rise in 2011. The knock on effect to the currency market saw many UK banks & traders cut their pro GBP long positions on Sterling, deciding instead to sell the pound short with little confidence in the future performance of the pound.

Euro Pound Graph – 14th March 2011

Euro Pound Graph

These moves came in the backdrop of Jean Claude Trichet’s statement last week that the ECB could raise rated as soon as April, so acting as a second quick blow that appears to have left the Pound on the ropes.
Indeed, callous as it sounds the earthquakes and tsunamis that tragically struck Japan and the Pacific Rim on Friday only worsened the pounds plight, with a knock on effect felt from a dip in UK stocks to a 3 month low.

Obviously your currency requirement can be affected by events ranging from the commonplace such as central bank meetings and unemployment figures and by the unimaginable events like those last week. Keeping in contact with an experienced broker is your only way of trying to navigate the notoriously volatile currency markets.

If you have yet to open a trading facility to gain access to commercial rates of exchange click here to open an exchange rate account today and an experienced trader will be in touch to discuss your requirement and offer expert market knowledge.

Sell my Tenerife Property! How to sell your Tenerife property

Sell my Tenerife Property! – When you sell a property using an Agent, you will be charged a fee, most Tenerife Estate Agents will normally charge 5% of the achieved sale price. Our fee is 5% but we actively market your property on an personalised basis to ensure maximum exposure. Added benefits to you the seller and vendor:

* Our website is on Google Page 1 for all the main search terms including Tenerife property, Tenerife Estate Agents and many other key terms including complex names.
* More pageviews per day than any other Tenerife Property website.
* Our website is user friendly, easy to navigate and well presented.
* 14 Coloured photos with high resolution display.
* Enhanced property descriptions.
* Every property is also featured on our Tenerife Blog, both websites are socially networked and actively marketed on the internet.
* Special featured bargain property search facility.
* Regular email campaigns to our registered users.
* Full professional service with honest representation.

We will try harder to sell your Tenerife property, let us market your property for you.

Visit our Tenerife Sellers Enquiry Page to complete details to sell you property now, it will only take a few minutes, you can also send us photos if you have them.

All we would ask is that you think about the price you want to sell your  Tenerife property for and be realistic if you want to acheive a sale. Your property will not sell unless it is competetively priced compared to others on the block.

Sur y Sol Bargain Los Cristianos 2 Bed Apartment – €125,000

Sur y SolThis bargain Sur y Sol two bed Apartment is for sale in Los Cristianos Tenerife for only €125000

This well presented two bed conversion apartment on the popular Sur y Sol complex has an open plan lounge/kitchen, two bedrooms and bathroom with a washing machine. There is a spacious terrace leading off from the lounge which is ideal for al-fresco dining, with views over the pool up to the mountains and down to the sea.

The Sur y Sol complex is well located in the heart of Los Cristianos close to all amenities, the beach harbour, town and Sunday market. With a large swimming pool Sur y Sol is a very popular complex for holiday letting and residency.

See all the photos if this Sur y Sol apartment in the heart of Los Cristianos on our main website.

Sterling vs Euro Exchange Rate Report – 7th March 2011

Euro7th March 2011 – Sterling vs. Euro

Sterling vs. Euro exchange rates have not fared well over the last week. Through most of the week Sterling had actually recovered quite well against the Euro, supported by better than expected housing data and inflation figures early in the week. All that was overshadowed however when the European Central Bank (ECB) president said on Thursday that interest rates were going to rise in the EU as soon as next month. As the chart below shows, this caused rates to fall close to a 3 month low:

European Central Bank President Jean-Claude Trichet said on Thursday that euro zone rates could rise next month — stunning markets which were expecting a rise late this year. He also pledged “strong vigilance” on rising inflation, a phrase that in the past has signalled a forthcoming rate rise.

Euro Pound Graph – 7th March 2011

Euro Pound Graph 7th March 2011

“There are significant risks on the upside for euro/sterling and yields spreads have moved in favour of the euro after yesterday’s comments from the ECB,” said Adrian Schmidt, FX strategist on Friday.

For most of the year so far, most analysts thought the UK would raise interest rates by mid year, with the ECB following suit much later in the year. This is reflected in the upwards trend shown in the graph above. Now however it seems that the tables have turned, and the EU will be raising rates before the UK. This has reversed the trend, and the Euro is now gaining on Sterling.

Higher interest rates strengthen a currency because of the higher return on offer to investors. The recent comments have therefore strengthened the Euro significantly, making it more expensive to purchase.  So the gains the pound has made all year have now been largely eroded. Given the harsh austerity measures on the way in the UK there is not much to suggest rates will bounce back any time soon.

If you have yet to open a trading facility to gain access to commercial rates of exchange click here to open an exchange rate account today and an experienced trader will be in touch to discuss your requirement and offer expert market knowledge.

Rural Property with land for horses, Granadilla, Tenerife

Rural property with land for horsesThis rural property with land for horses is for sale in Grandilla, Tenerife. This secluded rural equestrian three bedroom villa property is nestled amongst the forest and the picturesque mountains and over looks a large part of the eastern Tenerife coastline. The villa is 220 square metres on a rural plot of 28,000 square metres. There is an option to purchase an additional 30,000 square metres of adjoining rural land.

This rural property has a luxuriously spacious villa that takes rural-modern to a whole new level. It combines privacy and seclusion with fantastic 360 degree views. The owner has had plans drawn up for a 1st floor extension, which would add another 208m2 of living space, making it a 6 bedroom and 5 bathroom property.

The oak kitchen, complete with range cooker and view of Gran Canaria, flows into a spacious dining room which comfortably seats eight persons. There are three large double bedrooms, one ensuite and all with mountain views, all have full length French windows which open out onto the sandstone terrace. Stepping out from one of the bedrooms, surrounded by the vast terrace, is a beautifully secluded 45 square metre heated pool. A third bathroom is conveniently situated nearby.

With land ideally situated for keeping horses, there is room for 6 stables. There are 2 paddocks and a 40x20m manege. There is excellent hacking all around.

This rural land with a villa is set in idyllic countryside. Go down the mountain and experience the local towns and villages, or walk further up and you will come to pine forests, natural springs (fuentes) and stunning rock formations. Walking, biking, rock climbing and horse-riding (ranch style!) are all nearby, with water-sports at the coast just 20 minutes away.

There are an abundance of authentic local restaurants nearby, as well as a village with shops stocking local produce. The nearest supermarket is less than 15 minutes away.

With few neighbours, this rural equestrian villa is located just outside the rural town of Granadilla, just 20 minutes from the airport. The villa sits 850 metres above sea level, and 700 metres from the hamlet of La Higuera, close to the village of Los Blanquitos.

FOR SALE AT €895,000 FULLY FURNISHED

Visit our main web page to see all the photos of this Rural Property with land for horses in Granadilla, Tenerife.

Bargain Tenerife Luxury 6 Bed Villa, San Eugenio Alto

View from Luxury 6 Bed villa in San Eugenio Alto TenerifeThis bargain Tenerife luxury 6 Bed Villa is for sale in San Eugenio Alto for only €795k, MUST BE SOLD QUICK

This bargain Tenerife luxury villa is our bargain of the month. The Villa has 6 bedrooms and 6 bathrooms, a large kitchen with all mod cons on the main level, two large living areas, one with patio doors onto the terrace with views down to Las Americas and the sea. There is also a laundry room. Outside dining terrace with seating for 10 persons with sea views. The villa has a private swimming pool with BBQ area.

There are two en-suite bedrooms on the lower floor, another two bedrooms on the main level and two en-suite on the upper floor with balconies, one with Las Americas sea views and the other with Costa Adeje and mountain views. There is a bathroom and a shower room on the main level of the villa. There is a further kitchen on the lower floor.

The luxury 6 Bed Villa in San Eugenio Alto, Tenerife is being sold fully furnished and equipped for holiday letting, or as a fantastic family home. English and Spanish TV systems. The owner want’s to sell it very quickly to take advantage of an investment in the UK, hence a bargain price tag of only €795k.

This luxury bargain Tenerife Villa is in a fantastic location with easy walking access to all the major attractions of this coastal area. The beach is only a 20 minute walk.

Visit our main web page to see all the photos of this Bargain Tenerife 6 bed villa in San Eugenio Alto.

La Finquita Hotel Bar and Restaurant in Los Menores

La Finquita Hotel Bar and RestaurantLa Finquita Hotel Bar and Restaurant in Los Menores, Tenerife  is now for sale or rent.

La Finquita is Hotel, Bar and Restaurant is now vacant for sale or rent in Los Menores. The property occupies and elevated 3000 square metre plot in Los Menores and has 10 bedrooms, 9 bathrooms, two staff apartments, a conference room, reception area and breakfast room, in addition to the bar and restaurant with commerical kitchen. There are 511 square metres of constructed area set in amongst tropical gardens with terraces and a swimming pool. The property also has a 750 square metre car park just accross the road.

This is a rambling property with huge potential as a business or a private residence but it does need some money spending to bring it up to scratch. The owners say they would be happy to invest in the property if it was rented on a long term or it was going to be sold. This property has a great deal of potential as a live and work business in a wonderful environment. It would also make a very spacious family home.

For sale at €999,950 negotiable and for rent at €5000 per month.

Visit our main web page to see all the photos of La Finquita Hotel Bar and Restaurant.

Follow

Get every new post delivered to your Inbox.

Join 1,205 other followers