Monday, 10 February 2014

Will the Pound go back up against the Euro 2014?

Monday 10th February 2014 
Good afternoon. It’s been a very quiet start to the week, with no significant data releases, and so exchange rates haven’t varied much today. 

Sterling/Euro remains a little above €1.20 and Pound/Dollar sits at $1.64. Other currencies such as the Australian Dollar (AUD), New Zealand Dollar (NZD), and South African Rand (ZAR) etc. are still very cheap to buy, following a weakening of many of the world’s emerging economies.

This week will be key for how the Pound/Euro rate in particular performs over the coming weeks and months, as we have key data from the Bank of England (BoE) and European Central Bank (ECB). 

Below I have listed all this week’s data that I think will have an effect on exchange rate. To discuss your particular currency requirement, and how economic data could affect your rate, click below to send me a free enquiry. I can explain the options, discuss which way the market may go, and provide you a quote that could be up to 5% better than your bank or existing broker will offer you. 

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This weeks economic data releases that could affect exchange rates

Monday 10th February 2014 

It has been very quiet today, with the only release of note Investor confidence data from the Eurozone. Despite this being a little better than expected, it hasn’t had any effect on exchange rates. 

Tuesday 11th February 2014 

Today will probably also be quite quiet as there are no EU or UK releases of any interest. Over in the USA however, we have a speech by the new FED chief Janet Yellen. It will be interesting to see if her approach differs from her predecessor, and any hints on what direction she will take with the economy could be reflected in GBP/USD rates 

Wednesday 12th February 2014 

I think today is the most important of the week for exchange rates. In the UK we will see the Bank of England governor Mark Carney deliver the BoE’s quarterly inflation report. The recent strength of the Pound has been on the back of good data increasing the chance of an interest rate hike. I think he will use his speech to clarify their ‘Forward Guidance’ policy. If he hints rates will not rise soon, expect the Pound to fall in value. 

We also have the ECB president giving a speech at 15:30pm, and again his comments on inflation and interest rates could change the value of the Euro. So all in all it’s likely to be quite a volatile day for Sterling/Euro rates. 

Thursday 13th February 2014 

Today is quiet in the UK, but we do have some important data from elsewhere. The ECB releases its monthly report, and Germany has a raft of inflation numbers. In Australia, we have the latest unemployment figures that could affect GBP/AUD. 

Over in the states at lunchtime we also have Jobless numbers, along with their latest Retail Sales numbers and another speech by FED chief Janet Yellen. 

Friday 14th February 2014 

Europe releases GDP figures for Germany, France and the EU as a whole today. This will give investors a good idea how the economy is faring, so bad news could cause the Euro to weaken. We end the week with Industrial Manufacturing data from the United States. 

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