Monday 8th December
The Pound has had a good start to the week, rising by nearly a cent against the Euro to 1.2720 and also up against the US Dollar, from 1.5550 this morning to 1.5630 this afternoon:
What has cause the Pound to gain against EUR & USD?
There hasn’t been any significant data today, so I’ve put the rise down to comments from the Bank of England, that say the UK economy can cope with higher interest rates. They’ve stated that the majority of people with mortgages could cope with a rise in interest rates, if levels rose to 2.5% from their current 0.5% historic low.
The comments mean there is more chance of a rate hike in the first half of 2015 and the Pound strengthened accordingly. (A currency strengthens on the rumour of higher interest rates, as it attracts investment into the Pound due the potential higher return on offer).
It’s worth noting however that the Pound/Euro cross seems to be range-bound between 1.25 and 1.28 at the moment, so I don’t think we’ll see rates continue to climb. If you need to buy or sell Euros, get in touch for a free quote and a brief chat on the options you can consider to help you get the best rate.
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What else could affect exchange rates this week?
Tuesday 9th December – The most important releases today are from the UK, including Industrial and Manufacturing production, along with a NIESR GDP estimate, forecast at 1.8%, 3.2% and 0.7% respectively. If the actual numbers are higher or lower, the Pound could rise or fall accordingly.
Wednedsay 10th December – Another important day for Sterling as we have the latest trade balance figures. These show the difference between what we import and export so can often affect exchange rates. Elsewhere GBP/NZD could change as we have an interest rate decision from New Zealand and a press conference afterwards.
Thursday 11th December – Nothing of note from the UK today, but GBP/EUR could be affected by inflation numbers from Europe, and a monthly report from the ECB. We also have Australian Employment figures that could alter GBP/AUD rates, and in the USA we have raft of jobless numbers and the latest retail sales.
Friday 12th December – Nothing from the UK today, and from the EU we have Employment numbers and Industrial production figures. We end the week with US Inflation figures, and a consumer sentiment survey.
Do you have an upcoming currency transaction?
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iness buys and sells goods from the Eurozone. Whatever your currency needs, you could save thousands by achieving a better exchange rate.
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Labels: Best Exchange Rates, Currency, GBP/EUR, Interest Rates, Sterling strength