If you are looking for the best exchange rates, click the link below to send us an enquiry, and have a free consultation on what's happening in the currency markets.
It’s finally arrived. The UK's "age of austerity" will begin in earnest this Wednesday when the government announces the results of its Spending Review. It will give us the details of which government departments will need to cut their spending, and by how much.
With debt expected to reach £900bn (70% of GDP) in the coming years, the cuts are expected to be severe. This week then, in addition to the usual releases below, it’s the spending review announcement that will likely dominate the currency markets.
We expect the usual media leeks well before the official announcement on Wednesday, so we could see volatile swings in rates at any point. We also have the BoE minutes, so we’re in for some uncertain times, and it’s going to be pivotal for the Pound.
If you haven’t already, we suggest having a trading facility open and ready to use
. It’s free to open, and allows you to take advantage of a free consultation on tools available to protect against adverse movements.
It’s more important than ever to be abreast of what’s moving the markets, and it’s going to be an important week for anybody needing to buy or sell currency. Don’t put things off risk paying thousands more than necessary or just hope you’ll get a good rate; Click here to register with us right now
, and make sure you’re well placed to achieve the best possible exchange rates.MondayThe only UK data was yesterday evening when the Rightmove house prices were released, that showed . Today, the main data is from the US where we see the monthly Industrial Production figures. The dollar is weak at the moment, so a poor result (less than 0.2%) will push GBP/USD rates higher.TuesdayFrom the EU today, we have EU Construction Output along with German Economic Sentiment. From Canada, there is an Interest Rate decision. With world banks currently trying to keep currencies weak to help exports, we expect rates to stay at a 1% low.
Today’s the big day. The Spending Review is announced by the Chancellor revealing where the axe will fall. Along with the minutes to the recent Bank of England Interest Rate decision, today is very significant for the currency markets. The spending review could surprise the markets, and the BoE minutes will show who voted for a rate hike and also the discussions regards Quantitative Easing (QE). It’s the rumoured QE that has pushed Sterling down of late, so the markets will be paying very close attention to this. German Producer Prices may also play a part in GBP/EUR movements today.
ThursdayWe have Purchasing Managers Index (PMI) today from Germany and Europe. This captures business conditions in the manufacturing sector. As the manufacturing sector dominates a large part of total GDP, the manufacturing PMI is an important indicator of business conditions and the overall economic condition in the Euro Zone. Also from the EU, Consumer Confidence measures are released. For the UK, Retail Sales and Mortgage Approvals are the figures to look out for. Jobless data from the States rounds off the day.
Friday German Business Climate and Current Assessment is released today. It could move GBP/EUR rates. From Canada, Consumer Prices will show how inflation is faring, despite interest rates being low.