Money means what money does.  Human activities are based upon needs.  Almost all of our needs can be solved by money.  “Barter system” was prevailed in the world before to commence of money.  Later this system was replaced by introduction of money.

 Money Transfer Payments Internationally

Each and every country has own currencies. After the appearance of the economic units such as business, commerce, market and finance money transfer become an important task.

Due to the development of science and technology money can be easily transferred from one person to another in a far way distances.  Of course it may take more time for travel money .  Money order system was adopted mostly in domestic purposes.  More over money exchange directly by person to person is not genuine and not safe and reliable.

After the inauguration of banking system money exchange system become a popular and a safest method.  Business people when they are moving from one place to another they cannot carry a bulk of amount.  They prefer to do their transactions under the money transfer system by means of cheque, mail transfer, demand draft, travel cheque or so on.  Nevertheless this method has few vices most of the people are adopting and considering it as an easiest way.  Besides this now a days almost all are having ATM or credit card system.

Foreign Currency Exchange brokers provide their service for private individuals but also to business clients. This service will save your business money if you are paying suppliers, importing or exporting goods or even paying your staff abroad. Using a money transfer broker is essentially transferring your funds to a broker instead of using your bank but with the benefits of better exchange rates and usually no commission free.

Compare before you transfer money abroad

• Eurozone Retail Sales was expecting a fall to -1.0%  but when figures were released it took a positive turn surprising markets as the 0.2% index expanded sales index for July, from the previous of 0.9% and above the steady expected estimate. Analysts were expecting the data to reveal worsening conditions which has today strengthened the markets.
• US Labor Day bank holiday is being enjoyed today so there are no announcements due in from the US.

ELSEWHERE

• In the US, further talk of QE was spurred on by completely flat Nonfarm Payrolls growth on Friday. Market participants had been hoping for an increase of around 75k but after ADP employment failed to meet expectations earlier in the week it came as little surprise when NFP was as bad as it was.
• Worry in Germany as chancellor Angela Merkel’s ruling party is losing support over their handling of the EU sovereign debt crisis.
• Over the weekend an unnamed ‘senior’ IMF official has stated that Greece will face a ‘hard default’ by March 2012.
• The IMF have warned the US and Europe that stimulating the economies is more important that tight austerity measures. Fears are, the restrictive monetary policy could lead to a downward spiral in the whole global economy.
• The poor US jobs data combined with political and financial issues in Europe have caused a surge in risk aversion, helping the US dollar to strengthen as the Asian markets open this morning. GBPUSD down to 1.6126 and EURUSD down to 1.4140.
• Adding more woes to Swiss finance ministers the recent turn around in risk has undone the work last month to weaken the Swiss franc. EURCHF falls to lows of 1.10 and GBPCHF is back into the 1.26’s
• The RBA meet to decide Australian interest rates tomorrow, there is a small chance they will be cut however most are expecting them to remain on hold.

IN THE UK

• On Friday in the UK, PMI Construction fell to 52.3 in August from 53.5, the drop came as a disappointment because the sector had begun to show signs of improvement.
• Investor eyes turn to the Bank of England interest rate meeting later this week, more out of habit than anything else as rates are highly unlikely to be raised and although the discussion continues on QE, additional QE is also unlikely.
• Media says that shadow MPC have voted 5-4 in favour of a rake hike to curb inflation
• This morning PMI Services fall dramatically below consensus, posting a figure of 51.1 against expectations of 54.3. The pound.

                          

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• US Nonfarm payrolls numbers are expected to be down on the previous month and will be released at 1.30pm today this is expected to be after ADP employment earlier in the week failed to meet expectations the markets may see this as US dollar negative.
• US Unemployment Rate is expected to remain unchanged from last month and will be released at 1.30.
• UK PMI construction is released this morning, like manufacturing yesterday, the figure is expected to fall as conditions toughen. A figure of 52.6 is expected but if the published figure is lower GBP could be forced down.
• Eurozone Producer Price Index is forecasted to be positive, which may see a positive for the Euro and will be released at 10.00 am today.

ELSEWHERE

• German PMI manufacturing data for August disappointed and weakened the Euro.
• Manufacturing in Italy and France contracted in August, highlighting the importance of Germany’s economy in Europe.
• USD helped by surprisingly positive Unit Labor Costs figure (an indicator of trends in production costs, share prices and inflation).
• U.S. ISM manufacturing figure pushed the USD further forward as the 50.6 figure is read as bullish within the market.
• Negative U.S. construction spending figures released failed to hurt USD/GBP, which hit a day high of 1.6131.
• More suggestions in the press this morning that the ECB may have to reverse the recent interest rate hikes to stimulate the larger EU economies that are beginning to show cracks.

IN THE UK

• Sterling falls to 3 week lows against the U.S. Dollar.
• GBP hurt by soft housing data as Nationwide declare a 0.2% fall in Aug from July.
• BCC downgrades its forecast for UK economic growth to 1.1%.
• UK PMI manufacturing shrinks in August, remaining below the key 50 mark confirming contraction and adding to economic worries.
• Pound see gains versus the euro as the single currency suffers from its own poor economic data releases.

                          

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• Media reports suggest that Greece have hired a US law firm to discuss potential to leave euro as crippling debts are in their own words out of control. Greece’s government is considering leaving the euro and returning to its own currency,The move comes as a result of austerity measures that have broken the back of the Greece economy, and limited its ability to escape recession. Der Spiegel claims to have obtained Greek government documents that include plans to leave the euro in a secret crisis meeting of European leaders is to be held tonight in Luxembourg, according to Der Spiegel. The meeting will also include a discussion of a restructuring of the country’s debt, in the short, rather than long term.

• US Unemployment figures are expected to drop from 417k against a previous months reading to 409K where the correct figures will be released at 1.30 pm.
• US ISM Manufacturing where analysts are anticipating a fall which could lead to dollar weakness is scheduled to be released at 3.00pm.

ELSEWHERE

• German Retail Sales m/m beats expectations posting a figure of 0.0% against a forecast -1.5%.
• Eurozone Unemployment Rate misses expectations and once again enters the double figures posting a reading of 10%.
• US ADP Unemployment Report fails to meet expectations posting a figure of 91K against a forecast 102K but after a poor month for US data many were expecting a figure much worse. Attention now moves to the more important Non Farm Payrolls data released tomorrow.
• Canadian GDP posts a shock contraction of 0.4% however CAD remains largely unaffected.
• German GDP data this morning shows the economy remains at 0.1% growth as expected, however both German and collective Eurozone PMI Manufacturing fall in August, the German figure falling to 50.9 against a consensus of 52.0

Currency news in the UK

• Sterling recovers against morning lows of €1.1254 to post a high of €1.1327 during the afternoon trading session.
• GfK Consumer Confidence comes out marginally better than expected; posting a figure of -31 against a forecast -32, however due to timing of the release the impact was constricted.
• GBPUSD falls from high of $1.6333 to post lows of $1.6254 in the afternoon.
• Nationwide House Price information shows UK house price dropped 0.6% in August, the summer market tends to slow down so the figures didn’t come as too much of a surprise or disappointment.
• UK Manufacturing PMI follows its European counterparts and shows contraction as the August figure remains below 50, the posted figure of 49.0 was below a consensus of 49.6.

                          

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• Eurozone CPI to show where inflation currently stands is released today at 10.00am and the markets are expecting the figure to remain inline with last months figure at 2.5%.
• In the US this months figures for the ADP Employment change is released today at 1.15pm and is expected to fall to 105k from 114k last month.
• , the last figure posted was 0.3% The Canadian government will be releasing Canada’s Q2 GDP at 1.30pm where they are hoping to see that move comfortably back over zero.
• US Factory Orders for July is released at 3.00pm and Fed member Lockhart speech at 5.30pm finishes off the significant data for today.

ELSEWHERE

• EUR strengthens against USD on the back of recent comments from Jean-Claude Trichet, pushing above the 1.44 level.
• Further call for the Bank of Japan to correct its currency as the strength seen in the Yen is weighting heavily on export activities.
• On 29th US pending home sales come through significantly below forecasts.  Data posted show a negative 1.3% with expectations at a mere negative 0.8%.
• New draft of Italy’s second austerity package envisages halving the number of parliamentarians
• One Italian town has ditched the single currency in favour of minting its own coins – this comes on the back of renewed sentiment in favour of a euro bond to aid the Eurozone debt concerns.
• The race to come up with a Eurobond proposal that avoids changes to EU treaties has begun.
• Indian economy grew 7.7% in the three months from April to June.
• The National Bank of Greece posts a €1.3bn loss.
• US consumer confidence drops dramatically and the Fed minutes released yesterday reveal a difference in views of the members, however most are welcoming further QE whilst others.

IN THE UK

• The UK market open saw sterling move a fraction higher than the previous weeks close on the back of market gains in the US and Europe. However the pound failed to hold on to the gains and hovered around the 1.1270 – 1.1310 range.
• Net lending to individuals is down on expectations at negative 0.9bn, but up on previous month by 0.5bn.
• Mortgage approvals in UK reach highest in 14 months during the month of July, but the property sector is suffering with average property price at £200k, but average earning at £25k, thus keeping first time buyers out of the market.
• Bankers say put reforms on hold until markets and economy recover

                          

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• Consumer Confidence figures in the US are released with the markets expecting a dramatic fall to 52.2 from 59.5 as the struggling US economy begins to hit the consumer, figures released at 3.00pm this afternoon.
• Minutes from the Fed’s August 9^th interest rate decision meeting are released.
• Consumer Confidence figures in the UK are out. Overnight Gfk Consumer Confidence figures are expected to remain around the -30 mark.

ELSEWHERE

• Initially on Friday the US dollar gained against sterling but later reverses gains moving from the low of $1.6207 to end trade near $1.6345.
• US personal spending increases to 0.8% in July.
• Relief that the damage inflicted by the recent hurricane on the US east coast was less serve then first expected, this provides a major boost for risk assets.
• The Dow Jones rises 255 points to close at 11,539.
• In the Eurozone Greece’s biggest banks Eurobank EFG and Alpha Bank have announced they are to merge, this is positive news for struggling Greece as the government have encourage banks to pool resources to help deal with the current debt crisis.

IN THE UK

• Sterling loses ground across the board on Friday
• The GBPEUR falls to €1.1260, the lowest level seen since August 10th.
• The UK’s 2nd release of Q2 GDP figures was confirmed at 0.2%, overall matching consensus but with a slight downward revision to production industries offset by marginally stronger service sector growth.
• The data did little to change investors overall view of the UK economy and the pound remains under pressure.
• A slight relief to the pound this morning came in the form of Mortgage Approvals for July, the figure rose to 49.23k, above the consensus of 49k

                          

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UK data expected to come out at 0.2% which is expected due the significantly sterling volatility if it much different to the consensus at 9.30 am revised Q2 GDP figures are released.

• 10.30 Swiss KOF Economic Barometer, the figure is expected to fall but will the CHF continue to weaken?
• 1.30pm in the US sees Preliminary GDP figures, Personal Consumption and Michigan Consumer Sentiment, analysts suggest the figures will be disappointing showing falls across the board.
• The highlight of the week for USD traders is Ben Bernanke’s speech at Jackson Hole this afternoon beginning at 3.00pm. There has been speculation about whether or not QE3 will be implement today or not and what the Fed have up their sleeves to help the US economy avoid re-entering recession. The markets will be closely monitoring his words and we can expect movement in all currency pairs.

ELSEWHERE

• German GfK Consumer Climate comes out at a reading of 5.2 points in September, in line with economists’ expectations
• The worsening of the international debt crisis and rising concerns of a return to a global recession clearly leaves its mark of Germans’ economic optimism.
• In Switzerland, economic expectations slumped to the lowest level in more than two and a half years in August, sliding 12.5 points to -71.4, down from -58.9 points in July.
• The Swiss indicator for the inflation outlook also fell, with only 14.3% of financial market experts still anticipating inflation rates advancing on a six-month horizon, compared with 23.5% a month earlier.
• US weekly jobless claims rise more than expected, by 5,000 to a seasonally adjusted 417,000, the Labour Department said, adding that striking Verizon workers filed 8,500 claims for jobless benefits last week, after submitting 12,500 applications the previous week.
• The RBA in Australia expect inflation to be at 3% by the end of the year but have said they will be keeping interest rates on to maintain stability despite rising inflation.

IN THE UK

• Investors worry as Nationwide Consumer Confidence Index records a score of 49 for July, despite being above consensus it shows a decline of 2 points and the lowest reading since April
• The report shows UK inflation is outpacing wage growth, putting pressure on household incomes at a time when government budget cuts are fuelling concerns about rising unemployment
• MPC policymaker, Martin Weale, said the Bank of England can hold fire on further monetary stimulus despite economic weakness and recent market turmoil, as the overall picture is brighter than it was in the run-up to the financial crisis. These comments are in line with remarks by fellow policymaker, David Miles.
• GBPEUR hits a low of €1.1318 during days trading after opening at €1.1363 and GBPUSD hits a low of $1.6260 after its recent run up to 3month highs.

Have a great bank holiday weekend.

                          

• UK CBI Realised Sales expected to show a figure of -10 against a previous month’s figure of -5.
• Bank of England policymaker Martin Weale speaks at 12.00pm.
• US Unemployment Claims due to be released at 1.30pm and to post a forecasted figure of 403K against Junes reading of 408K.

ELSEWHERE

• German IFO data missed expectations heavily posting a figure of 108.7 against a forecast figure of 111.2, the second consecutive piece of data to miss forecasts. This is the strongest decline since the fall of Lehman Brothers and suggests that the German economy is facing a difficult H2 2011.
• Eurozone’s Industrial New Orders, month on month data misses expectations massively posting a figure of -0.7% against a forecast figure of 0.6%.
• US Core Durable Goods (excludes transportation costs) month on month, beats expectations posting a figure of 0.7% against a figure forecasted of -0.3%.
• US Durable Goods Orders, month on month beats expectations posting a figure of 4% against a forecasted rate of 2.1%.
• Rumours now circulating that Jackson Hole meeting tomorrow might not be where new US measures are revealed, possibly meaning all the fuss is for nothing. However most experts for the time being are expecting some policy changes to be made.
• German President has said that Germany is nearing its limit on the amount it will throw at the bailout fund. If the debt crisis continues to worsen if the Germans make a stand there simply won’t be enough money in the pot to continue the bailouts.

IN THE UK

• Sterling slides against the US dollar and Euro during afternoon trading posting lows of €1.1372 and $1.6416.
• The UK released no significant data yesterday, as heads now turn towards Friday’s release of Q2 GDP figure.
• Despite losing out yesterday, sterling is still considered to be a safer investment opportunity over the US Dollar, and their debt issues.
• UK and Swiss Governments agree a deal that means that UK residents with undeclared savings in Swiss bank accounts could now be subjected to tax, could raise as much as £5bn in revenue.
• Surprising the markets this morning, Nationwide Consumer Confidence was slightly better than expected at 49, however the figure was lower than last months and sterling is posting losses against most currencies this morning.

                          

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• Retail Sales in New Zealand are expecting to show a decline to 0.6% in the second quarter from 0.9% previously and published at 11.45 pm this evening.
• Eurozone Industrial New Orders are expected to show a decline to 11.9% on an annualised basis at 10 am today.
• US MBA Mortgage approvals will give a indicators of how the US housing market is performing at 12.00 pm today.
• US Durable Goods Orders are set to show a healthy rise to 2.1% is expected which could help the US dollar recover some of its recent losses, to be released at 1.30 pm today.

Worldwide News

• Moody’s downgrade Japan from Aa3 from Aa2 but level outlook at stable.
• EURUSD has a strong morning in the Asian heading towards 1.45 but falls as the European markets open as German IFO figures in all components drop below the consensus expectations.

• In Germany, data showed output grew both in manufacturing & services but at the weakest rate for nearly two years.
• Richmond Fed manufacturing data was worse than expected and New Home Sales fell more than expected which failed to bolster the USD
• Investors count down the hours to the Jackson Hole speech on Friday where Ben Bernanke will address the pressing issues facing the USeconomy. Will there be further intervention and could this be the start of the QE3
• Eurozone debt problems are still pressing as Finland threatens to withdraw from Greek bailout because of serious lack of collateral. Media suggests that other countries are looking at non cash assets for collateral such as property and land in Greece.

IN THE UK

• Sterling makes gains against the US Dollar as it reacts positively to German manufacturing data.
• Pound receives an unexpected boost from a better than expected UK manufacturing survey which reported an ease in inflationary pressures.
• Manufacturers warned of tough times ahead due to market volatility & recalibration of growth expectations.
• Positive GBP sentiment was also helped further by an unexpected increase in BBA mortgage approvals.
• GBP/USD traded between the ranges of 1.6453 & 1.6572.

                          

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• Canadian Consumer Price Index Annual CPI is expected to drop to 2.8% from 3.1% last month. If the drop doesn’t materialise Canadian CAD could see healthy gains.
• Pound being referred to a safe haven currency as the stock markets are in tatters and gold is seeing massive gains, currently trading at highs of $1858 this morning.

Worldwide

• Dollar weakens due to recent figures not being good and risk aversion has been calmer this week
• Philadelphia Fed Manufacturing figures in the US dropped to 30.7, the lowest since March 2009 renewing concerns of a double dip recession.
• President Obama said US economy is still growing and doesn’t need exceptional measures but US existing home sales fall 3.5% in July causing more woes for the dollar.
• Concerns persist about the Eurozone debt crisis, the EURUSD drops back into the 1.42’s as investors struggle to decide which is the safer bet, euro or US dollar.
• US CPI rises sharply in July to 0.5% beating expectations of a 0.2% rise
• Japan’s finance minister Noda has said he is ready to make another “surprise” intervention to weaken yen strength. So the secret is out now, we wait for his intervention, I wonder if the markets will find it surprising.

IN THE UK

• UK retail sales disappoints by only growing 0.2% in July compared with the 0.3% forecasted- causing sterling to drop initially in early trading
• By mid afternoon sterling recovers losses to spend most of the day trading around the $1.6525 level
• Sterling breaks the €1.15 level as concerns persist about the Eurozone debt crisis
• Technical charts suggest the next level of topside resistance for sterling against the US dollar is around $1.6740, the late April high
• UK Public Sector Net Borrowing posts a figure of -£1.961bn, generally a deficit is beneficial to pound strength and this morning the pound has seen small gains against the US dollar.

                          

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