In early morning trading sterling exchange rates have been performing fairly well with slight gains against the Euro up by around 0.3%. Against the AUD & NZD sterling is up by 0.7% and 0.47% but we have seen a slight decline against the USD.
We are set for a very busy week ahead with numerous amounts of economic data being released around the globe. Today things are a bit light on the ground but tomorrow for those of you with a GBP/EUR requiremeny there is a raft of data out for Germany and the UK. I would expect things to be very volatile tomorrow with inflation figures the theme of day. Inflation will be out at 9.30 in the morning and after this will follow industrial production figures for the whole of the Euro zone. If the production figures come out positively I would expect to see some Euro strength so you may be wise to keep a close eye on this release.
Wednesday we have the all important Bank of England minutes and last time sterling was boosted by all members of the MPC voting against QE and a rate hike. The markets will more than likely be expecting the same outcome this month so if there is a member of the Bank of England that votes in favour of QE then there may be only one way for sterling which would be down. Other releases to factor in on Wednesday will be the GDP figures for Germany and the Euro as a whole. Of late growth in the Euro zone has been stagnant so a rise in the expected figure should give the Euro a further boost. However if you are selling Euros I would not be to hopeful of the figures being to wonderful so you may wish to act before Wednesday. If the Bank of England’s minutes come out as expected and the GDP is negative for Europe then GBP/EUR could rise with a target level of 1.17 could be around the corner. If all data comes out positive for Europe and negative in the UK then a drop back down to the 1.15′s could be feasible..
On Thursday things slow down a little with retail sales figures out for the UK and no data out for Europe. On Friday there is no data out for the UK but in Europe they will post very important trade balance figures.
All in all, this week for GBP/EUR we will see swings in the market. It is important to have a good currency broker on your side who can keep you updated with what is happening with the exchange rates and how the data releases can have an affect on your exchange. I will be happy to inform you if a specific rate becomes available so you can maximise your exchange. I have tools available like limit orders and rate alerts along with forward buying if you are concerned and want the peace of mind in knowing how far funds you will go.
If you would like more information on any of the above and have a requirement to buy or sell the pound against any major currency then please do contact me at bma@currencies.co.uk with information on your requirement and contact details. I will then speak with you to explain the options that are available to you.
Thank you for reading.
Ben Amrany
bma@currencies.co.uk