The latest CBI Industrial Trends Survey found further falls in new orders were predicted over the coming quarter. Output was also expected to decline, the report revealed. CBI Scotland director Hugh Aitken said: “Manufacturers have been struggling with export demand for several months because of subdued global growth and the strong pound.”

The UK economy’s growth slowed in the third quarter of the year being weighed down by the performance of the construction and manufacturing sectors. Gross domestic product grew by 0.5% between July and September down from 0.7% in the second quarter. The rate was also lower than the 0.6% growth predicted by analysts.

All eyes were on the Fed Meeting on Wednesday night. Interest rates remained unchanged. The Fed said economic activity has been expanding at a moderate pace and it will continue to monitor markets. Most notably it did not repeat warnings from last month that global headwinds could impact on the US economy, leading many to suggest that a rate rise in December could still be on the cards. They also maintained their stance that they would like to see further improvements in the labour market and that they can be confident inflation will move back to its 2% target over the medium term.

Thursday afternoon the US growth figure disappointed the markets as it came in below forecast rising 1.5% in the last three months. The decline from 3.9% was due to companies clearing out inventory (stock etc.), which showed it’s biggest swing since 2011.

Businesses and individuals looking to buy Dollars and sell Euros may benefit from a forward contract to hedge against adverse movements. Please contact us for your free, no obligation FX comparison.

Monday saw the release of the NAHB housing market index, which presents home sales and expected home buildings; these indicate future trends for housing in the US. A high reading is seen as positive for the USD and low seen as negative. This came out better than expected at 64 when the consensus was 62. This is positive for the USD as it can reflect consumer and business confidence.

Wednesday we saw the UK Office for National Statistics report that public sector net borrowing fell to £8.63 billion in September from £10.79 billion in August. The figure was revised from a previously estimated £11.31 billion. This is the smallest budget deficit for a September in eight years as the tax-take from businesses and individuals rose to records.

The Euro lost significant ground on Thursday afternoon after the European Central Bank (ECB) President Mario Draghi said he was studying new stimulus measures that could be unveiled as soon as December and is prepared to cut its deposit rate deeper into negative territory if needed to fight falling prices. Consumer prices in the 19-country Euro-zone slipped by 0.1% in September, prompting calls for the ECB to expand or extend its 60 billion euros a month quantitative easing program that was designed to push inflation back to the ECB’s target of just under 2%.

Businesses and individuals looking to buy Dollars and sell Euros may benefit from a forward contract to hedge against adverse movements. Please contact us for your free, no obligation FX comparison.

A rise in car exports helped improve Britain’s trade deficit in August, with the monthly shortfall in the trade balance narrowed to £3.3bn from £4.4bn in July. However the UK was still heading for a huge deficit in the third quarter of the year after an upward revision to July’s shortfall.

China’s exports and imports fell in September, as global demand remained weak, signaling that the world’s second-largest economy continues to struggle into the end of the year. Exports dropped less than some economists had expected. Still, they said the data offered a further indication that China’s third-quarter growth figures set for release next week will likely fall below Beijing’s target of about 7% for the whole year.

Britain’s inflation rate returned to negative territory for only the second time since 1960, reflecting weak price pressures that the Bank of England has warned will persist into 2016. Consumer prices fell an annual 0.1% after stagnating in August. The ONS said that a smaller than usual rise in clothing prices, and falling motor fuel prices, were the main contributors to the drop in the rate. The CPI rate has been at zero or close to zero for most of this year. It was last in negative territory in April.

The US Consumer Price Index fell 0.2% last month after slipping 0.1% in August. In the 12 months through September, the CPI was unchanged for the first time in four months after rising 0.2% in August. Last month gasoline prices fell 9.0% – the biggest drop since January after declining 4.1% in August. Food prices increased 0.4%, the largest increase since May 2014.

Businesses and individuals looking to buy Dollars and sell Euros may benefit from a forward contract to hedge against adverse movements. Please contact us for your free, no obligation FX comparison.

China is studying plans to curb currency speculation even as it seeks to quicken the process of making the yuan trade freely, Yi Gang, a deputy central bank governor said.

Growth in the UK service sector slowed further in September to its lowest rate in nearly two and a half years, a survey has indicated. The latest Markit service sector purchasing managers index (PMI) fell to 53.3 last month from 55.6 in August.

British house prices dropped by 0.9% in September when compared to August. Figures released by Halifax shows the rise in UK house prices in the year to September slowed to 8.6%, from 9% previously. Between July and September prices went up by 2% compared with the previous quarter. As a result the value of the average house or flat in the UK has fallen to £202,859.

On Wednesday we saw the pound climb to a two-week high against the US dollar, boosted by the release of strong UK industrial production data.

The euro also weakened on Wednesday after data showing that German industrial production fell at the fastest rate in a year in August.

On Thursday The Bank of England’s Monetary Policy Committee announced at midday yesterday that the Base Rate would remain on hold at 0.5% by split majority vote. The committee voted 8-1-0, with Ian Mcafferty the single member continuing to vote for a rate hike, the remainders voting for no change and no one voting for a rate cut.

Businesses and individuals looking to buy Dollars and sell Euros may benefit from a forward contract to hedge against adverse movements. Please contact us for your free, no obligation FX comparison.

The US central bank delayed a rate hike at its September meeting in the face of uncertainty about the global economy, a market selloff in the US and concern that inflation might fall further away from the Fed’s two percent target.

German annual inflation turned negative in September for the first time in eight months and the weaker than expected reading could push the euro zone rate below zero, boosting the case for the European Central Bank to take more action.

US consumer confidence rose and was higher than expected in September, according to a private sector report released on Tuesday. The Conference Board said its index of consumer attitudes rose to 103.0, the highest since January, from a downwardly revised 101.3 the month before.

Figures released on Wednesday showed that the UK economy grew in line with expectations in the second quarter, underlining optimism over the health of the economy and supporting the case for higher interest rates. GDP expanded at a rate of 0.7% since the end of June, which met with forecasts.

A report out on Thursday said the Eurozone is in a “sweet spot” as it benefits from lower energy prices, a more competitive exchange rate and solid demand in the UK and US. The financial services firm predicts that investment spending will pick up in 2016, which will in turn boost GDP from 1.6% to 1.8% in 2016.

Businesses and individuals looking to buy Dollars and sell Euros may benefit from a forward contract to hedge against adverse movements. Please contact us for your free, no obligation FX comparison.

On Monday the headlines were dominated by news on the Greek election, with Alexis Tsipras set to return to power following another emphatic election victory, securing a new mandate after he yielded to the demands of European leaders for more austerity in the crisis-hit country.

The former prime minister’s Coalition of the Radical Left, or Syriza, received 35.5% of the vote, according to an official projection by the Interior Ministry based on more than half of votes counted.

George Osbourne made a speech in Shanghai proclaiming that he wanted to create a link in the UK’s and China’s stock markets. He announced a “landmark feasibility study” into the idea, which would enable Chinese and British shares to be traded in both countries.

The Eurozone economy expanded in September, continuing a year of robust growth, according to survey figures released yesterday. Markit’s flash purchasing managers’ index (PMI) scored 53.9 for this month, down slightly from August but still above the 50 score that implies growth and in line with economic growth.

On Thursday evening, Federal Reserve chair Janet Yellen again reiterated that the US is on course to raise interest rates this year.

Speaking a week after the Fed voted against a rise in borrowing costs, she said inflation is being weighed down by temporary factors such as a strong dollar and low oil prices.

Businesses and individuals looking to buy Dollars and sell Euros may benefit from a forward contract to hedge against adverse movements. Please contact us for your free, no obligation FX comparison.

The UK consumer inflation expectations came out at 2.0% at 09:30 last Friday morning, both weaker than expectations and the previous release of 2.2% for the previous month, capturing the continued impact of lower oil prices and the slowdown in China. GBPUSD sold off following the data announcement, but recovered before the end of the trading day in London, ending down on the day, but not significantly so.

UK inflation returned to zero in August, down from July’s rate of 0.1%. Consumer prices were unchanged compared with a year earlier following a 0.1% annual gain in July.

Over in Europe, with the Greek election due to take place on Sunday, Greece’s two political heavyweights are deadlocked in the most recent poll with both the Syriza and New Democracy party tied at 31.6% each.

Inflation across the Eurozone unexpectedly weakened last month; the figures raised analysts’ expectations that the ECB will expand its quantitative easing policy by the end of the year. The annual rate of inflation fell to 0.1% in August from 0.2% in July.

Retail sales in the US climbed for a second straight month, a sign consumers may be to concerned about recent volatility in financial markets, especially in China. The 0.2% increase in August followed a 0.7% gain in July that was larger than previously reported.

On Thursday evening the Dollar lost ground against a host of it’s counterparts after the Federal Reserve decided to keep interest rates near zero, citing global risks as a key factor during a dovish statement.

Businesses and individuals looking to buy Dollars and sell Euros may benefit from a forward contract to hedge against adverse movements. Please contact us for your free, no obligation FX comparison.

We wanted to share some fantastic news with you; 24th September is when the prestigious Yorkshire Asian Business Association awards dinner will be taking place.

The evening will celebrate the contribution of the best businesses from the region. Our very own Sayam Majid has been shortlisted for an award on this prestigious evening in the category ‘Emerging Entrepreneur’. Furthermore, this event has been featured in the Yorkshire Post, and you can find more details of the award categories and finalists here.

As you can imagine, as a company we are very proud of his achievements and thank our customers, suppliers and partners who have played a major role in this recognition.

The event will be held at Cedar Court Hotel, Bradford and with an amazing line up of speakers and entertainment. We would like to take this opportunity to thank everyone who has been involved in our journey to success thus far. FX Introducer has seen phenomenal growth over the past 12 months and now exchanges over £5 million of business each month. We couldn’t have done it without your support.

We hope you can make it to the event, celebrate our successes together, and have a drink or two on us. Details can be found here.

Finally should you or your clients require any help or advice in terms of foreign exchange please do not hesitate to drop us a line, we will be more than happy to provide our advice.

Kind regards

Cas Majid
CEO

Retail sales in the Eurozone rose again in August, although the pace of increase slowed down from the previous month, figures released last Friday showed. The index fell from to 51.4 in August from July’s 54-month high of 54.2, but remained above the 50 threshold that signals expansion for the fourth consecutive month.

Prime Minister David Cameron suffered an embarrassing defeat in parliament on Monday over how the referendum regarding leaving the European Union will be conducted. In Monday’s vote euro-skeptics teamed up with MPs from the main opposition Labour party and the Scottish National Party to vote down the move, which they saw as a key test of the government’s willingness to address their concerns.

Retail sales figures in the UK disappointed on Tuesday after being hit by the late timing of the bank holiday. Total UK sales were barely changed, up 0.1% compared with the same month last year, while like-for-like sales, which exclude new store space, fell 1.0%.

Manufacturing production fell unexpectedly throughout July, as did the UK’s industrial output. Manufacturing production decreased by a seasonally adjusted 0.8% in July. It was expected to gain 0.2% following a previous 0.2% increase earlier this year. Annual manufacturing production fell at a rate of 0.5%.

The Pound strengthened on Thursday afternoon after Bank of England Governor Mark Carney said the UK’s economic outlook remains healthy and market turmoil related to China’s slowdown hasn’t shaken their view that the time for a rate increase is approaching. At their September meeting, the nine-member Monetary Policy Committee said it’s too early to draw clear conclusions about developments overseas, a sign they remain focused on withdrawing emergency stimulus that’s been in place since 2009.

While the panel voted 8-1 to keep the key interest rate at 0.5%, with only Ian McCafferty dissenting, economists again forecasted a BOE rate increase in the first quarter of next year.

Businesses and individuals looking to buy Dollars and sell Euros may benefit from a forward contract to hedge against adverse movements. Please contact us for your free, no obligation FX comparison.

German retail sales beat expectations, gaining 3.3% year-on-year despite eurozone confidence being shaken by the Greek debt crisis. Economists were forecasting a growth of just 1.7% so Germany’s bullish sales figures come close to doubling expectations.

Unemployment in the Eurozone fell to its lowest rate in July for more than three years. European Union statistics agency Eurostat said the jobless rate in the currency union fell to 10.9% in July from 11.1% the month before.

A two-year spell of jobs growth across British factories came to an end last month as manufacturing activity expanded at a slower pace, suggesting the sector is unlikely to boost economic growth during this quarter. The UK Manufacturing Purchasing Managers’ Index (PMI) fell in August to 51.5 from 51.9 in July, confounding expectations for a rise to 52.0.

The Markit construction Purchasing Managers’ Index (PMI) rose to 57.3 in August from 57.1 in July, indicating solid growth but below the 57.5 forecast. The survey published on Wednesday showed construction firms were bullish about the future, with most firms expecting to be busier over the coming year, while only one in 20 expected a contraction. On the back of this Sterling lost ground against both the EUR and USD.

The ECB kept policy rates unchanged at 0.05% but opened the door to more stimuli in shape of an extension to the Quantitative Easing package. QE is a tool used by the ECB to keep Euro Area interest rates artificially low by increasing the money supply to purchase government debt.

The US Fed’s Beige Book released last night said the economy continued to grow throughout most of the country during July and August, stating the solid rebound in economic growth in the second quarter continued into the summer but at a more moderate pace.

Businesses and individuals looking to buy Dollars and sell Euros may benefit from a forward contract to hedge against adverse movements. Please contact us for your free, no obligation FX comparison.