With Sterling exchange rates creeping back above the 1.10 mark against the Euro yesterday, along with minor gains against most other currencies the pound has had a positive start to the week. Those with pending currency exchanges may wish to be aware that there is a really busy week of economic data ahead that may lead to a very volatile week.
This morning we have the release of key U.K inflation data at 09:30am, a higher reading may lead to further progress for the Pound as it heightens the chance of an interest rate hike in the U.K ever so slightly.
Tomorrow morning brings unemployment and average earnings figures for the U.K too. Expectations are for unemployment to remain at a level of 4.4% but what may be key is the fact that average earnings figures are expected to improve from 2.1% to 2.3%. The reason this is so important is that due to average earnings figures not being in line with inflation, the Bank of England feel like they cannot make any moves on interest rates at present. Should the average earnings figures start to increase at a good pace then once again the Pound may benefit.
On Thursday we have the Bank of England interest rate decision, no change to rates is expected as it stands and to be honest I feel it may be doubtful for quite a period of time, but with the markets moving on speculation as well as fact even the mere hint of a rate hike getting closer from Mark Carney and the Bank of England could give the Pound a further boost.
Personally I feel the Pound may continue to have a good week but as most regular followers will be aware it has recently been taking one step forward and two steps back so it would only take the economic data to disappoint and the Pound could still retract again.
If you have a pending currency exchange to carry out in the coming days, weeks or months then it would be prudent to get in touch with me directly no matter who you were planning to use. I have had thousands of people contact me through this blog over the years that had planned to use their bank or their current broker and the vast majority have ended up using our company instead due to better exchange rates and a smooth and efficient customer service.
If you would like to get a free, no obligation quote to compare against what you are currently being offered then you can email me (Daniel Wright) on email@example.com with a brief description of your needs and I will be more than happy to contact you personally.