The Pound has recovered slightly against the Euro in the last few days, and this afternoon we've seen the rate rise to around the €1.30 level, after the single currency weakened following comments from the European Central Bank (ECB) president:
In today's post, I'll list the main data releases that could affect Sterling exchange rates this week. If you need to convert currency and would like a quote, or would like to discuss which way exchange rates are moving, click here to send me a free enquiry. I have never had issues beating rates on offer by other brokers, so enquiry today to see if you could save money.
This week's economic data releases that could affect exchange rates
Monday 15th February - It's presidents day in the USA and so markets are quite quiet. This morning we saw the latest Trade Balance figures for December from the EU, and they were slightly worse than expected, weakening the Euro and helping GBP/EUR rise close to €1.30. The Euro weakened further this afternoon when the ECB president Mario Draghi gave a speech which investors took as negative for the single currency, weakening the Euro and making it slightly cheaper to buy.
Tuesday 16th February - Today we have lost of data from the UK at 09:30am. The PPI and CPI inflationary measures will be very important, because if they confirm inflation is below zero, it increases the chance of an interest rate cut in the UK. Lower interest rates would weaken the Pound pushing exchange rates lower. The US markets re-open today also, but there is nothing significantly other than some House Price data.
Wednesday 17th February - Another important day for Sterling, due to the latest Unemployment and earnings data due to be released at 09:30am. Earnings and unemployment data are a key reflection of the UK economy, so disappointing figures could hurt Sterling. Elsewhere we the EU's January Trade Balance figures. In the USA we have industrial production numbers and the latest FOMC minutes. It will be interesting to see if these indicate no further US interest rate hikes will happen in the coming months, and if this is the case, expect the USD to weaken, pushing the rate back towards $1.50.
Thursday 18th February - A relatively quiet day today, with some data from Europe the only release of note, so GBP/EUR could face some volatility today.
Friday 19th February - We end the week with UK public Sector net borrowing, German inflation data, and a host of inflation numbers from the states.
Getting the best exchange rates
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Labels: Best Exchange Rates, Currency, GBPEUR, Pond/Euro forecast, What affects exchange rates, Will Pound go up or down against Euro