Good morning. Today we'll have a detailed look at Pound to Euro, Pound to US Dollar and Pound vs New Zealand Dollar. We also look at the weeks fundamental data that may affect exchange rates.
Pound vs Euro
Sterling started of last week well against the single currency, reaching a high of 1.2275 with a low of 1.2143 (Interbank Levels) a difference of -1.1%. Therefore a difference between the high and the low of the week on €250,000 would be around £2,200 on your purchase.
Last week saw the U.K. economy expand faster than previously estimated in the second quarter in the biggest growth spurt since 2001 as companies rebuilt stocks and construction work surged.
Gross domestic product rose 1.2 percent from the previous three months. That was higher than the 1.1 percent initial estimate. On the year, the economy has expanded 1.7 percent.
Whether you are looking to buy or sell Euros we have a number of ways to safeguard your requirement. One of the contracts which can do this over a long period is a ‘Forward Contract’ Where one can purchase a their currency for anything up to 2 years in advance with a 10% deposit locking in the rate of exchange now.
If you have an upcoming requirement and are worried about where the rates are heading in the upcoming future please don’t hesitate to get in touch to talk to one of our currency experts who can guide you in the right direction.
Pound vs US Dollar
US dollar strength continued to dominate the GBP/USD cross for the early part of last week, as the rate reached a low of 1.5373 at mid-market level before negative sentiment in the US caused a retracement to the 1.55 level, where it has remained stable since. The major news of the week was the US GDP figure, released on Friday afternoon, which showed the economy had grown by 1.6% in the last quarter.
Looking to the week ahead, the headline data release will be US unemployment figures on Friday, a leading indicator as to the state of the US economy, which is coming under increasing scrutiny from investors as doubts emerge as to the long term sustainability of the recovery.
Whilst the UK had a bank holiday on Monday, the currency markets were still trading, and saw the dollar make early gains against the pound – a currency often loses value on a non-trading day, as investors move their funds out of it for a day to make money in other overseas markets.
Pound vs New Zealand Dollar
In a week where the New Zealand Dollar failed to gain little underlying support, it found itself taking direction from underperforming global stock markets and relatively stagnant oil prices. Australia's indecisive election campaign didn't help matters for the New Zealand Dollar, as the Pound managed to pare its initial losses.
The GBP/NZD rate closed at 2.1833 on Friday, down 0.88% from 2.2029 at the weeks open, benefiting those converting New Zealand Dollars into Sterling.
In a quiet week for domestic data, the only notable economic announcements are Business Confidence and Money Supply released by the Reserve Bank of New Zealand's (RBNZ). The RBNZ will want to guard against inflation expectations rising more sharply than anticipated; as such the New Zealand Dollar could find some buying support if the data is stronger than anticipated, supporting expectations of further interest rate rises in the coming months
This Weeks Data
As usual, below we list the main fundamental data releases for the week. The releases will affect you in different ways, depending which currency you need to buy or sell. So, contact us today for a free
Consultation on how these releases may impact your currency purchase. Fully informed of what may move exchange rates, you can make a decision on when to fix your rate, and which contract may be best for you to reduce exposure to adverse rate movements.
A free consultation is the first step to taking control of your currency purchase, and not allowing the markets to control you!
No data from the UK due to the Bank Holiday and there is no scheduled economic data of note from further a field.
Begins with consumer confidence data for the UK and retail sales for Australia. Later in the day we have consumer confidence from the US along with the FOMC meeting minutes details of which provide an in-depth insight into the economic conditions that influenced their vote on where to set interest rates and often creates volatility between GBP/USD.
Australia kick off the day with their quarterly GDP figures as regular readers of this report know GDP data has the significance of moving the exchange rate , For the UK Housing price and Manufacturing PMI are expected with the US rounding off the day with unemployment and Manufacturing PMI releases.
Begins yet again with housing price data for the UK however this time from another source, Switzerland will receive retail sales figures and the Eurozone is set for this months interest rate decision followed by the ECB Press conference which provides an in-depth insight into the economic conditions and future outlook of the Eurozone according to the Central bank. For the US today we have more unemployment data this time concerning the claimant count, an increase in which could prove negative for USD.
On the final day of the week we can expect Services PMI data from the UK along with various unemployment releases for the US market and Manufacturing PMI to close off the week.
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Labels: Fundamental Data, GBP/EUR, GBP/NZD, GBP/USD Forecast