One of the country's leading economists, and Investment Editor of the Financial Times, John Authers says, "That the chances of an acute recession have receded significantly..."

Plus to the advantage of our economy and unstable currency is benefited by the chances of a recession in the US falling. Although the market isn't stable, varying prominent economists have all suggested there are suggestions of a slight improvement. In previous times leading up to a recession there has been different signals. In 2000 the ISM has fallen to 41 and a decade previous to 39.2.

Such credit squeezes on the banking systems affect our currency exchange rates; and therefore any subsequent overseas spending.

In business, such a poor exchange rate means that exports become so much more expensive. However individual clients on a personal level will find that there are two downfalls, either of which is when we exchange our money into other currencies.

For those who travel there is an upside and a downside. For those choosing to travel to Europe will find a downside as their purchase of holiday spends into Euros will be drastically reduced if compared to previous years. Those traveling to the US will discover the upside and their pound will get them more dollars.

The other downside is for those individuals choosing this year to re-locate into Europe, more especially those countries that have adopted the euro. Imagine for one moment those with a £100,000... In July of 2007 they would get around 142,000 Euros; today however they would only get 122,000 euros. That's a difference of 20,000 Euros. That of course could be the difference between 2nd or a third bedroom, or a finca and a small apartment.

Currency Brokers have seen an upsurge in business, in a natural way, as people find a need to work harder in getting the best out of their money. Our High Street Banks, although they do change large amounts of currency, cannot compete with the Currency Broker. Lower overheads and fewer staff help to trim off their costs.

Currency Brokers charge less than 1% as opposed to the hefty 3 to 4% charged by the banks. This may not sound much until you consider exchanging £100,000; that would be a nice 'shareholders meeting bubbly session' costing almost £4,000, if you catch my humour.

It is a tough world out there and rather than spend our hard earned cash we need to look after it. If you were buying a £200,000 property in Spain, the commission a bank would charge could be the most expensive part of buying the house. A consideration worth giving some time and thought to...

Mr. P. Booker Senior Currency Expert and Columnist

Copyright (c) 2008 Phillip Booker