Daily Archives: May 3, 2012
Sterling hits a 33 month high against a basket of currencies on a trade weighted basis, but Euro buyers be wary of the ECB interest rate decision at 12.45
Sterling has continued its recent resurgence hitting a 33 month high against a basket of currencies on a trade weighted basis. This has included a notable high against majors such as the Euro (a 22 month high), US dollar (7 month high), AUD and NZD (year highs). To me these must represent some fantastic buy opportunities and may well come as a welcome relief to many. For those with an upcoming requirement involving Sterling watch out for UK PMI for the services sector at 09:30. The PMI service released by both the Chartered Institute of Purchasing & Supply and the Markit Economics is an indicator of the economic situation in the UK services sector and captures an overview of the condition of sales and employment. Figures above 50 show expansion and below contraction, we are expected a release of 54.2 showing expansion but these would be down on April’s figure of 55.3 so may cause the pound to weaken a touch. We have also seen Nationwide house price data released overnight with figures falling from 0.5 to -0.2% – possibly why the pound is down against most currencies this morning.
ECB Interest Rate Decision
For anyone with an interest in the Euro keep an eye on the European Central Bank and their respective interest rate decision at 12.45BST. Expectations are for a rate hold at 1% but the press conference held by President Mario Draghi at 13:30BST should be viewed with caution. I am sure the situation in Spain will be high on the agenda and clues may be given as to future monetary policy and as to what the ECB projects for the coming weeks and months. Should Draghi take a positive (bullish) tone watch for Euro strength in the afternoon session. Subsequently any negative sentiment and expect the reverse. The period before and after the Presidents speech is a notoriously volatile time, anyone risk averse may well look to avoid this contact Mike at firstname.lastname@example.org to discuss your transfer and the potential outcomes.
As a specialist currency broker myself and a number of my colleagues regularly post on this blog to assist and help individuals and business’s a like make an informed decision as to when is best to exchange. Through years of market experience we get a feeling as to what data sets affect the market and can help pass this market knowledge on to prospective clients. Ultimately the decision is always yours but should you have an upcoming requirement and would like to run through the data that might affect your exchange in the coming weeks then please do not hesitate to contact me. As well as taking time to write and post on this blog I also work for one of the UK’s largest independent brokers www.currencies.co.uk offering a number of contracts tailored to each individuals requirements. I would be more than happy to discuss these contracts with you and can be reached on 01494 787 478 or email Mike at email@example.com