Monday, 27 October 2014

What next for Sterling exchange rates?

Monday 27th October 2014 
Good afternoon. The Pound is currently trading at the top end of its recent range against the Euro, sitting at a mid-market level of €1.27 at the time of writing. The European Bank stress tests over the weekend were quite poor, which has weakened the Euro slightly making it cheaper to purchase. Against the US Dollar, the Pound is also up slightly at $1.6135. 



Which direction could Sterling take this week? 

 
As I often point out, it’s impossible to predict the market. However, with a good knowledge of economic data and recent trends, it is possible to make an informed choice as to when to fix your exchange rate. You should also consider taking advantage of a free consultation with me if you need to get the best possible rates of exchange. Below I will list all this week’s economic data that I think will have an effect on exchange rates. 

Be aware if you are buying Euros, that the rate has reached these levels many times recently before dropping back away. Given we’re at the top end of the recent GBP/EUR trading range, get in touch today to get a quote and find out how to take advantage of these rates, even if you don’t need your currency right now. 

I’m afraid we only deal with bank to bank transfers for amounts of £5000+, we do not deal in cash or holiday money. If you need to exchange currency for a property abroad, topping up your Euro account, or if you buy or sell goods overseas, I can help you get exchange rates up to 5% better than banks can offer. 

Click here to make a free no obligation enquiry today. 

This week’s economic data releases. 


Monday – This evening at 7.30pm, one of the Bank of England (BoE) members gives a speech. Any clues as to future interest rate movements could affect the value of the Pound. 

Tuesday – Most data today is from the USA – Durable goods orders and consumer confidence, both of which could affect GBP/USD exchange rates. Later in the evening at 6.30pm we have another BoE member giving a speech. 

Wednesday – Germany has a bond auction today, and the UK releases Net lending data, so we could see changes in the GBP/EUR rate. There is also yet another speech by a Bank of England member. We also have Business Confidence data from New Zealand, in addition to their latest decision on Interest rates, so GBP/NZD could change. Over in the states we have a statement by the FOMC, and their interest rate decision. 

Thursday – Yet another BoE member gives a speech today! Other than that Nationwide House prices is the only UK release. In Europe we have Spanish growth data, and German unemployment figures. Stateside, FED chair Yellen gives a speech, and the latest unemployment figures are also released. 

Friday – Nothing of note from the UK today. In Europe we will see German Retail Sales, French Spending, and inflation estimates for the Eurozone, all of which could affect the GBP/EUR rate. In the USA we have Employment data, Personal Spending, and inflation numbers. 

For more information on how the above could affect your currency requirement, or to get an exchange rate quote to compare with your bank or existing broker, click below to send me a free enquiry now. 

Click here to send a free no obligation enquiry.