Tuesday, 06 December 2016
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Weekly Financial Update

More strength for the pound?
Sterling had another fairly good week managing to get up to the mid 1.18s (to the Euro) before retreating back as the session closed. There were some fairly good UK economic figures last week and that, plus the fact that sentiment is starting to change against the Euro, helped Sterling become a bit of a flavour for the month.

Euro Weekly Update

The initial effect of Donald Trump's election to the White House seems to have run its course.  While investors still expect his policies for tax cuts and infrastructure spending to be positive for the dollar in the longer run they were not sufficiently enthusiastic to continue buying the dollar a month after the vote.  Despite the looming uncertainty of this weekend's referendum in Italy and presidential vote in Austria they still preferred the euro to the dollar: it strengthened by one US cent on the week.

Euro Weekly Update

If politics was the main driver for currencies at the end of last week, then it most certainly was again throughout the past five days. Wherever you were this week everyone had one eye on the US presidential election. It was an all but a steady introduction to the week for Europe; Germany reported a -0.6% monthly fall in factory orders while, for Euroland as a whole, retail sales were down by -0.2% and investor confidence improved by four and a half points to 13.1. Swiss inflation was steady at -0.2% and the Swiss National Bank's foreign currency reserves increased from SFr628bn to SFr630bn: they go up every month as a result of the SNB's interventions to sell the franc.

Euro Weekly Update

Last week ended on an average note for the euro, it was unchanged against the other dozen most actively-traded currencies. Over the last month the strongest performer had been sterling and by a good margin. Investors had taken a shine to the British pound, in the last week sterling gained an average 3.4% against the other dozen most actively-traded currencies.

montepioThe European Investment Fund (EIF) and Caixa Económica Montepio Geral (Montepio) have signed a guarantee agreement to provide EUR 20 million for small and medium-sized enterprises (SMEs) in Portugal. This agreement benefits from the support of the European Fund for Strategic Investments (EFSI), the heart of the Investment Plan for Europe.

Under the new agreement, Montepio will provide attractive loans to innovative SMEs and mid-caps over the next two years. EIF’s guarantee is provided under the “EU InnovFin finance for Innovators” initiative, backed by Horizon 2020, the EU Framework Programme for Research and Innovation. The transaction would not have been possible so soon without the backing of the Investment Plan. It follows the news on 24 October that the European Investment Bank (EIB) signed a EUR 20 million loan with Montepio, which was also backed by the Investment Plan.

Euro Weekly UpdateIf politics was the main driver for currencies at the end of last week, then it most certainly was again throughout the past five days. Wherever you were this week everyone had one eye on the US presidential election.
It was an all but a steady introduction to the week for Europe; Germany reported a -0.6% monthly fall in factory orders while, for Euroland as a whole, retail sales were down by -0.2% and investor confidence improved by four and a half points to 13.1. Swiss inflation was steady at -0.2% and the Swiss National Bank's foreign currency reserves increased from SFr628bn to SFr630bn: they go up every month as a result of the SNB's interventions to sell the franc.

Portugal’s 2017 Budget. Will You Be Affected?Portugal’s finance minister, Marion Centeno, has announced his proposed budget for 2017. The key reform that could affect expatriates living here is the introduction of a “wealth tax” on property.

It will now be debated in parliament, and once approved it will come into effect on 1st January 2017. There may be changes before the budget is finalised.

Premier FX partners with South Africa-based Currency AssistThe new collaboration provides South African residents with greater access to world currencies, while South African expats receive expert advice on moving money in and out of South Africa.

United Kingdom-registered Premier FX has partnered with South African-based Currency Assist. The cooperation brings together two boutique currency exchange companies, from across the globe, with similar company cultures, yet unique solutions for the markets they service. The partnership is especially advantageous for South African citizens with foreign monetary interests.