Monday, 10 August 2015

What could affect exchange rates this week?

Monday 10th August 2015 
Good morning. As I outlined in Friday’s post, Sterling has fallen against other currencies in recent days. Today I’ll list out the main economic data releases that are likely to cause volatility in exchange rates. After last week’s interest rate speculation for the UK and USA, at the time of writing GBP/EUR exchange rates are a little above €1.41, and GBP/USD rates are in the mid $1.54’s. You can view live rates updated every few seconds including interactive charts by clicking here. 

Remember that if you’re looking for the best deal on currency, in addition to my market updates here on the blog, I can also provide you a quote for your exchange that is likely to be significantly better than your bank or existing broker may offer. Click here to get your quotation today. 

What could affect Sterling exchange rates this week? 

As usual for a Monday, I have listed below this week’s main fundamental data releases that I think could affect exchange rates. If you have a currency transaction to perform and would like to get a quote or simply discuss what could affect the exchange rates you’re looking at in the coming weeks, contact me today by clicking here. 

This week's economic data releases

  • Monday 10th August 2015 – Today's is relatively quiet on the data front. The only UK release of note is Retail Sales data from the British Retail Consortium released at midnight. Retail Sales are a good barometer of overall economic activity so can affect the Pound. Elsewhere, one of the US Federal Reserve’s members gives a speech at lunchtime. Any further indications of an interest rate hike could cause GBP/USD rates to fall further. 
  •  Tuesday 11th August 2015 – Nothing of note from the UK, but GBP/EUR could be affected by an EU wide economic sentiment survey. Germany also releases its economic sentiment measures along with Wholesale prices. Because Germany is the EU’s largest economy, its figures can affect the value of the Euro. 
  •  Wednesday 12th August 2015 – Today is the most important one for the Pound, as we have several releases detailing unemployment figures at 09:30am. Unemployment is expected at 5.6%, so any deviation from this figure will affect Sterling exchange rates. Later in the day we have House price data from the Royal Institute of Chartered Surveyors. Elsewhere Europe has Industrial production figures. The US delivers its monthly budget statement, so all in all lots today that could affect the currency markets. 
  •   Thursday 13th August 2015 – Nothing from the UK today, but GBP/EUR could still be affected by German Inflation data, and a European Central Bank Policy meeting. The USA and New Zealand both release their latest Retail Sales figures. 
  •  Friday 14th August 2015 – Another busy day from Europe, with Gross Domestic Product figures from Germany, Italy and the EU as a whole. There are also inflation numbers released from Europe today, so a busy morning for the single currency. We end the week with US Industrial Production figures. 

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