Olympic games are over; now back to reality

mar bonnin palmer

Writing in the Mail on Sunday, Sir Mervyn King pondered the possible economic legacy of the Olympic games; "By spreading happiness and good cheer the Games have made us all feel better. And, who knows, the impact on confidence may give the economy a boost. But ultimately the Games cannot alter the underlying economic situation we face." Earlier in the piece he had said; "Success does not come overnight. That is as true of our economy as it is of sport."

Is he being too pessimistic? Perhaps, although he did concede that "our economy... is slowly healing." The governor also mentioned that "the squeeze on real take-home pay is coming to an end" and producer price index figures released on Friday told a similar story about business margins. Input prices - manufacturers' costs - fell by -2.4% in the year to July while output - factory gate - prices were up by 1.7%.

The news had little impact on sterling but later in the day the pound did bounce from Wednesday's low against the US dollar. There were no data or news to provoke the one-cent rally, which looked very much like the result of investors covering short sterling and euro positions ahead of the weekend. Sterling starts this morning half a US cent above Friday's opening level while euro/dollar is a dozen ticks lower. As a result, the pound has added half a cent against the euro and is a touch higher against the yen.

With Germany's wholesale price index already out of the way (up by 0.3% in July and by 2.0% on the year) almost nothing remains on today's ecostat agenda. Euroland's current account deficit for June is due as London opens and Greece may or may not publish the litany of woe that is second quarter economic shrinkage. And that's it until tonight, when New Zealand reports on retail sales, Australia releases the latest business confidence figures and the RICS reveals how quickly UK house prices are falling.

There is not much there to help or hinder sterling. But consider something else the governor said in his article; "the problems of the euro area continue with no obvious end in sight".

To find out how global affairs can affect your currency transfer contact Moneycorp on +44 (0)20 7828 7000. You can also send your enquiry by email on comparemoneytransfer@moneycorp.com

To speed up the process, why not open a free no obligation account. Opening your free account will give you quick access to live prices and enable you to transact immediately.

Company Details

Olympic games are over; now back to reality

Get a quick quote

Open Account with TORFX

TORFX are located at:
Penlowarth, Penzance, Cornwall, TR18 4ED, United Kingdom

Get a Quick Quote

Newsletter Signup to CMT

Sign up to our foreign exchange newsletter to receive news updates directly by email

Compare Money Transfer will not Share your details!

Bank Exchange Rates Comparison

High St Bank Exchange Rate

All Rights Reserved: Copyright 2006 - 2018 Compare Money Transfer Limited offering FCA Regulated Suppliers - 34 New House, 67-68 Hatton Garden, London, EC1N 8JY. +44 (0) 843 357 4882