Tag Archives: data
The week ahead for Sterling exchange rates – Economic data of interest and contract types that may assist you (Daniel Wright)
So we have another busy week ahead for Sterling exchange rates including an interest rate decision for Australia tonight, Unemployment data for New Zealand tomorrow night, Bank of England interest rate decision and meeting minutes on Thursday lunchtime followed by Non-Farm Payroll data due out on Friday afternoon.
There is indeed plenty for the market to feel off of this week and I would expect some fairly large swings, especially for the Antipodean currencies (Australian and New Zealand Dollar) overnight early in the week. With the possibility of such large movements overnight it is key that you have protection in place should you be looking to carry out a currency exchange in the near future.
All the writers here at Pound Sterling Forecast work for a currency brokerage with a turnover of over half a billion Pounds a year, which means we have access to fantastic rates of exchange. Even if you feel you are getting a good deal elsewhere at the moment I would be extremely surprised if we couldn’t do better for you. You can email me (Daniel Wright) the creator and main editor of this site on email@example.com with a brief description of what you are looking to do and a contact number and I will be happy to contact you personally. You can also call me during U.K office hours on 01494 787 478 (please ensure you ask for Daniel Wright).
We have a number of contract types that can help you during such volatile times including the following:
Forward contract: This is where you can lock into a rate of exchange for anything up to two years in advance with just a small deposit. This is really handy for anyone buying or selling a property overseas that would like to protect some or even all of their funds against currency fluctuations. I see time and time again clients agreeing to purchase a property overseas and putting down a deposit only to find themselves in a tricky situation later down the line when coming to pay for the balance on the property because the rate has dropped so much. For some reason even the most sensible people decide to effectively gamble thousands of Pounds based purely on hope over actually having knowledge that an exchange rate will go their way. firstname.lastname@example.org if you would like more information.
Limit order: If there is a particular rate of exchange you would like to achieve but the market just is not there yet then you can place a limit order into the market. This order is free and can be cancelled or amended at any time you like as long as it has not gone through, but basically means that if at any time 24 hours a day/7 days a week your rate becomes achievable then your currency will be bought out automatically and we will just contact you to let you know the good news. email@example.com if you would like more information.
Stop Loss: This contract type is handy if you are working to a tight budget and cannot afford to go any lower than a particular rate and works in a similar way to the limit order above, yet will trigger should your buying rate hit your chosen lowest possible point. Some clients like to ‘chase the market up’ and raise their stop order on a daily basis when the market is moving in the right direction for them. firstname.lastname@example.org if you would like more information.
I have no doubt this will be a busy week, please do feel free to get in contact with more information on the above or if you have an exchange you with to carry out and you would like to know what rate we can offer you.
|09:30||UK||GBP||Markit Manufacturing PMI (Jan)||51.8||51.9|
|09:30||UK||GBP||Consumer Credit (Dec)||£1.300B||£1.476B|
|09:30||UK||GBP||Mortgage Approvals (Dec)||69.60K||70.41K|
|13:30||US||USD||Personal Consumption Expenditures – Price Index (YoY) (Dec)||0.4%|
|13:30||US||USD||Core Personal Consumption Expenditure – Price Index (MoM) (Dec)||0.1%||0.1%|
|13:30||US||USD||Personal Income (MoM) (Dec)||0.2%||0.3%|
|13:30||US||USD||Personal Spending (Dec)||0.1%||0.3%|
|13:30||US||USD||Personal Consumption Expenditures – Price Index (MoM) (Dec)||0%|
|13:30||US||USD||Core Personal Consumption Expenditure – Price Index (YoY) (Dec)||1.3%|
|14:30||CA||CAD||RBC Manufacturing PMI (Jan)||47.5|
|14:45||US||USD||Markit Manufacturing PMI (Jan)||52.7||52.7|
|15:00||US||USD||ISM Manufacturing PMI (Jan)||48.0||48.2|
|15:00||US||USD||ISM Prices Paid (Jan)||34.0||33.5|
|15:00||US||USD||Construction Spending (MoM) (Dec)||0.6%||-0.4%|
|16:00||EMU||EUR||ECB President Draghi’s Speech|
|18:00||US||USD||Fed’s Stanley Fischer speech|
|TUESDAY, FEB 02|
|03:30||AU||AUD||RBA Interest Rate Decision||2%||2%|
|03:30||AU||AUD||RBA Rate Statement|
|08:15||CH||CHF||Real Retail Sales (YoY) (Jan)||-1.3%||-3.1%|
|08:55||DE||EUR||Unemployment Change (Jan)||-7K||-14K|
|08:55||DE||EUR||Unemployment Rate s.a. (Jan)||6.3%||6.3%|
|09:30||UK||GBP||PMI Construction (Jan)||57.6||57.8|
|10:00||EMU||EUR||Unemployment Rate (Dec)||10.5%||10.5%|
|21:30||US||USD||API Weekly Crude Oil Stock||11.4M|
|21:45||NZ||NZD||Unemployment Rate (Q4)||6.1%||6.0%|
|21:45||NZ||NZD||Employment Change (Q4)||0.8%||-0.4%|
|21:45||NZ||NZD||Participation Rate (Q4)||68.6%|
|WEDNESDAY, FEB 03|
|00:00||NZ||NZD||RBNZ Governor Wheeler Speech|
|00:30||AU||AUD||Trade Balance (Dec)||-2,500M||-2,906M|
|01:45||CN||CNY||Caixin China Services PMI (Jan)||50.2|
|02:30||JP||JPY||Bank of Japan Governor Kuroda Speech|
|08:00||EMU||EUR||Non-monetary policy’s ECB meeting|
|08:15||ES||EUR||Markit Services PMI (Jan)||54.5||55.1|
|09:00||EMU||EUR||Markit PMI Composite (Jan)||53.5||53.5|
|09:00||EMU||EUR||Markit Services PMI (Jan)||53.6||53.6|
|10:00||EMU||EUR||European Commission Releases Economic Growth Forecasts|
|13:15||US||USD||ADP Employment Change (Jan)||195K||257K|
|14:45||US||USD||Markit PMI Composite (Jan)||53.7|
|14:45||US||USD||Markit Services PMI (Jan)||53.7|
|15:00||US||USD||ISM Non-Manufacturing PMI (Jan)||55.1||55.3|
|15:30||US||USD||EIA Crude Oil Stocks change (Jan 29)||8.383M|
|23:50||JP||JPY||Foreign bond investment (Jan 29)||¥475.3B|
|23:50||JP||JPY||Foreign investment in Japan stocks (Jan 29)||¥-189.2B|
|THURSDAY, FEB 04|
|00:30||AU||AUD||National Australia Bank’s Business Confidence (QoQ) (Q4)||0|
|06:45||CH||CHF||SECO Consumer Climate (3m) (Q1)||-18|
|08:00||EMU||EUR||ECB President Draghi’s Speech|
|12:00||UK||GBP||BoE Interest Rate Decision (Feb 4)||0.5%||0.5%|
|12:00||UK||GBP||BoE Asset Purchase Facility (Feb)||£375B|
|12:00||UK||GBP||Monetary Policy Summary|
|12:00||UK||GBP||Bank of England Quarterly Inflation Report|
|12:00||UK||GBP||BOE MPC Vote Unchanged||8||8|
|12:00||UK||GBP||BOE MPC Vote Cut||0||0|
|12:00||UK||GBP||BOE MPC Vote Hike||1||1|
|12:00||UK||GBP||Bank of England Minutes|
|12:45||UK||GBP||BOE’s Governor Carney speech|
|13:30||US||USD||Initial Jobless Claims (Jan 29)||278K|
|15:00||US||USD||Factory Orders (MoM) (Dec)||-2.6%||-0.2%|
|22:30||AU||AUD||AiG Performance of Construction Index (Jan)||46.8|
|FRIDAY, FEB 05|
|00:30||AU||AUD||Retail Sales s.a. (MoM) (Dec)||0.5%||0.4%|
|00:30||AU||AUD||RBA Monetary Policy Statement|
|05:00||JP||JPY||Coincident Index (Dec||111.9|
|05:00||JP||JPY||Leading Economic Index (Dec)||103.5|
|13:30||US||USD||Nonfarm Payrolls (Jan)||190K||292K|
|13:30||US||USD||Average Hourly Earnings (YoY) (Jan)||2.5%|
|13:30||US||USD||Unemployment Rate (Jan)||5%||5%|
|13:30||US||USD||Labor Force Participation Rate (Jan)||62.6%|
|13:30||US||USD||Average Hourly Earnings (MoM) (Jan)||0.3%||0.0%|
|13:30||US||USD||Trade Balance (Dec)||$-43.0B||$-42.4B|
|13:30||CA||CAD||Unemployment Rate (Jan)||7.1%|
|13:30||CA||CAD||Net Change in Employment (Jan)||22.8K|
|15:00||CA||CAD||Ivey Purchasing Managers Index (Jan)||42.5|
|15:00||CA||CAD||Ivey Purchasing Managers Index s.a (Jan)||50.3||49.9|
|18:00||US||USD||Baker Hughes US Oil Rig Count||498|
|20:00||US||USD||Consumer Credit Change (Dec)||$16.00B||$13.95B|
I have no doubt this will be a busy week, please do feel free to get in contact with more information on the above or if you have an exchange you with to carry out and you would like to know what rate we can offer you. You can call me on our trading floor 01494 787 478 or email me directly email@example.com and I look forward to assisting you.
Another fairly quiet day on the markets today for those with an interest in buying or selling Sterling, however tomorrow I would expect to see a little more volatility.
The last working day of the month can lead to sharp movements without warning as we see month end flows…. basically companies and funds netting off positions in advance of a new month. Quite often on the last working day of the month Sterling can become quite volatile against all major currencies as we see this happen , so it is important if you have a fairly imminent transfer to make that you keep in close contact with a proactive broker.
Here at Pound Sterling Forecast we do not only give you up to date market information but we can help you with exchanges too. We can get the very top levels of exchange on the markets due to our vast buying power and we pride ourselves on helping our clients with the timing of when they exchange their currency. If you would like me (Daniel Wright) the creator of this site and a Director at Currencies.co.uk to help you with a transaction or merely to give you a quote then feel free to email me personally on firstname.lastname@example.org and I will be more than happy to get straight in touch.
Economic data of note tomorrow is European inflation data, out at 10:00am (expectations are for a jump to 0.4%) which may give the Euro a little boost if matching that figure. I wouldn’t be surprised to see it fall short and to offer an opportunity to purchase Euros at a slightly better rate.
Later in the day we have U.S Growth figures – These are due out at 13:30pm and expectations for this is a level of 0.8%. This release can impact all major currencies as they may alter global attitude to risk.
For those with a Canadian Dollar interest we have growth figures for Canada at exactly the same time so be aware we may see a little volatility shortly after this period.
If you are looking to exchange any currency in the near future then it is well worth getting in touch with me. You can call me during U.K office hours on 01494 787 478 (Please ask for Daniel Wright) or you are welcome to email me with a description of what you need to do on Djw@currencies.co.uk and I will be more than happy to put together a game plan together with you.
Chinese growth figures tonight and Inflation data for the U.K tomorrow morning are key for the next 24 hours of Sterling movements (Daniel Wright)
So tonight we will see the latest growth figures from China and expectations are for the worst figure they have released in quite some time. Should this be the case then we may have weakness for the Australian Dollar and NEw Zealand Dollar yet may see further strength for the Euro, making it even more expensive to buy.
There are just so many factors impacting the value of Sterling against other currencies at present including uncertainty surrounding the ‘brexit’ oil prices, China, poor economic data and little potential for interest rate hikes this year.
Tomorrow morning will be the first economic data of note for the week, we have a flurry of inflation data out for the U.K at 09:30am and this may really set the scene for the rest of the trading day as long as China hasn’t had too much of an impact prior to its release.
Bank of England Governor Mark Carney speaks at 11:00 and you can be sure that investors and speculators will be hanging off of his every word, especially if inflation happens to have thrown up any surprises earlier in the morning.
All in all we are set for a fairly volatile day for Sterling exchange rates and however hard to predict I actually feel the Pound may have a better day than we have seen of late and that we may see a chunk taken out of some of the recent losses.
Here at Pound Sterling Forecast we pride ourselves on not only providing regular and informative market data but we also can handle currency exchanges too. All authors on this site work for a brokerage assisting clients with large currency transactions day in day out and we would love to assist you too. If you are new to the site or have been following for a long time then feel free to contact me (Daniel Wright) directly and I will be more than happy to respond to you personally.
You can get in touch with me by email on email@example.com or by contact me on 01494 787 478 (0044 1494 787 478 if abroad) during our U.K trading hours (08:30am – 18:00pm).
Economic data coming up that may impact your currency exchange – Data for those with GBP,EUR,USD, CAD,CHF,NZD and AUD interest
Tomorrow morning to start the ball rolling we have U.K unemployment data which is expected to remain at 5.6% – Any change to this will lead to a volatile start to the morning for Sterling exchange rates.
I have outlined other important data of interest but I would say the main talking point of the week has to be the Federal Reserve Interest rate decision, monetary policy statement and press conference att released on Thursday evening at 19:00pm.
Speculators and investors around the world will be watching to see if there will be any movements in interest rates either imminently or in the coming months for the States.
Personally I feel this is a week where limit orders come into play for anyone looking to buy or sell currency during the course of the week. A limit order is where you can set a specific rate you wish to achieve with us and should it become available even for a matter of seconds then your currency will be bought out automatically for you and we will contact you to let you know.
The order can be canceled or amended at any time as long as it has not been achieved and a lot of my clients are using this handy market tool at present to try and squeeze that little bit more out of a volatile market.
If you are buying an overseas property or you have large business invoices to pay then it is well worth contacting me for more information on this free market tool.
We pride ourselves on not only giving our readers and clients regular market information but also helping them achieve the best possible exchange rates for their transfers. You can email me (Daniel Wright) on firstname.lastname@example.org and I will be more than happy to contact you personally to tailor a plan for your specific situation.
Other releases of note are below, likewise if you need further information on how these may affect you then email me on email@example.com
|WEDNESDAY, SEP 16|
|10:00||EMU||EUR||Consumer Price Index (YoY) (Aug)|
|10:00||EMU||EUR||Consumer Price Index – Core (YoY) (Aug)|
|10:00||EMU||EUR||Consumer Price Index (MoM) (Aug)|
|14:30||US||USD||Consumer Price Index Ex Food & Energy (YoY) (Aug)|
|14:30||US||USD||Consumer Price Index (YoY) (Aug)|
|THURSDAY, SEP 17|
|07:35||JP||JPY||Bank of Japan Governor Kuroda Speech|
|08:30||CH||CHF||SNB press conference|
|08:30||CH||CHF||SNB Interest Rate Decision|
|19:00||US||USD||Fed Interest Rate Decision|
|19:30||US||USD||Fed’s Monetary Policy Statement and press conference|
|23:30||AU||AUD||RBA’s Governor Glenn Stevens Speech|
|FRIDAY, SEP 18|
|13:30||CA||CAD||Bank of Canada Consumer Price Index Core (YoY) (Aug)|
|13:30||CA||CAD||Consumer Price Index (YoY) (Aug)|
I hope if you fine our market information interesting and useful you will give us a shot at getting you a better exchange rate than your current currency provider. We have helped over 5000 clients that have contacted us through this site and we would love to add you to that list of satisfied customers. Contact me (Daniel Wright) on firstname.lastname@example.org with a brief description of your needs (minimum £20,000) and I will call you personally.
The Pound has made minor gains against most majors this week so far however important economic data is extremely thin on the ground and I would expect this to be the case during trading tomorrow as well.
Sterling exchange rates had a very volatile ride over the majority of September as investors and speculators alike geared themselves up for what may come from the Scottish referendum. Now that the dust appears to have settled on that matter we have seen a little Sterling strength against most major currencies as we have a little certainty both regarding the economy and politically bought back to the market.
The Pound is close to a half a year high against the Australian Dollar today though which is refreshing news for anyone looking to buy Australian Dollars in the coming days and weeks, whilst sat on the cusp of a two and a half year high against the Euro and the highest rate against the Dollar for the past few weeks so if you are looking to buy foreign currency then now certainly isn’t the worst of timing.
Tomorrow is again extremely quite with regard to economic data so unless any major surprises crop up I would expect a fairly range bound day which could actually be the ideal time to take a moment to get in touch with us directly should you have an up and coming currency transfer to make involving either buying or indeed selling the Pound.
I can help you personally with either and do not only pride myself on an efficient level of service but also on beating the exchange rates of banks and other currency brokers, so anyone that does contact me through this site can ensure that I will do my very best to make sure they make a significant enough saving to use the company I work for rather than their current provider.
All you would need to do if you would like a quote or more information on the service I can provide is to email me (Daniel Wright) directly on email@example.com and i will be more than happy to contact you personally to let you know how I can assist you.
Flat week for Sterling so far with little economic data out – What does the rest of the week hold? (Daniel Wright)
The Pound has had a fairly slow start to the week against all major currencies, as we have seen very little in the way of economic data released leading towards the end of the month.
We do have a few points of note later on in the week mainly concerning Europe, Canada and America.
Swiss employment figures are however due at 08:15am tomorrow morning which is one point of note for anyone following the Swiss Franc.
Shortly after that we have German unemployment figures at 08:55am which although is a fairly important release however it appears no change in unemployment rates is expected but any differential to the expectation of 6.7% could lead to a volatile morning for the Euro.
later on in the day at 13:30pm we do have U.S GDP (Gross Domestic Product) figures which will show growth over in the states during a specific period and can actual lead to market volatility for all major currencies as it may have an effect on global attitude to risk.
Friday we round the week off for the Euro with European inflation and employment figures with year on year inflation expected to come out at 0.8% and unemployment to remain at 11.5% (much worse than that of the U.K and US).
Canada release their GDP figures later on in the afternoon at 13:30pm and one thing to be fairly wary of is month end flows which we do tend to see fairly often on the last day of the month. This can cause volatility for all major currencies in any direction so Friday is a good day to ensure you have someone watching the market for you.
If you do not currently use a currency broker or you feel you could be getting a little more out of the broker you currently use in terms of exchange rate and service then it may be prudent to contact me directly.
I pride myself on keeping clients fully up to date with market movements and our exchange rates have won numerous awards so I would be surprised if I couldn’t save you money too.
Feel free to email me (Daniel Wright) on firstname.lastname@example.org and I will be more than happy to give you a call to explain the service and quote you if you wish.
Pound Sterling Forecast – Economic data out the first few days this week and how it may move exchange rates (Daniel Wright)
A very slow start to the week for Sterling today with very little economic data or news for the markets to move off.
This will more than likely be the calm before the storm this week though as there is plenty of data for investors and speculators alike to get their teeth into which will no doubt cause quite a lot of volatility for most major currencies.
Tonight – Overnight we see the RBA (Reserve Bank of Australia) meeting minutes and the RBNZ (Reserve Bank of New Zealand) inflation expectations, out at 02:30am and 04:00am respecively. RBA Governor Stevens has seemingly turned a corner lately with his comments on the strength of the Australian Dollar and appears to be a little happier with the way things are going, leading to the Australian Dollar gaining some strength back against the Pound and knocking the GBP/AUD rate back below 1.80. Stevens is also due to speak on 00:30 Tuesday night as well.
Tomorrow – Tomorrow morning we see a key inflation release from the U.K which could easily lead to a bumpy ride for Sterling followers during the course of tomorrow morning. Inflation had beejn at 1.9% which is just about below the Government target of 2% so any minor alterations to this, especailly to the upside could give the Pound a morning boost, as one way to lower would be to raise interest rates, so a figure of 2% or above may lead to a little speculation of a rate hike coming a little closer. Of course, comments from the Governor of the Bank of England last week may well cut this potential out.
Later in the day it is the turn of the States for their inflation data, interstingly also expected to come out at 1.9% so if you have an interest in the Dollar be sure to keep a watchful eye on the market shortly after 13:30pm – Or why not email me on email@example.com and I can monitor things on your behalf.
Wednesday – Wednesday morning we have the Bank of England minutes from the last BOE interest rate decision. No major expectations from this one however it does really have the potential to throw up a surprise or two and news that any of the 9 members of the Bank of England now are voting in favour of an interest rate hike may give also Sterling a shift up in the right direction.
Later in the evening we have the FOMC (Federal Open Market Commitee) minutes, again very similar to the BOE minutes seen a little earlier on this will show how the Fed voted in terms of rate movements and what they discussed at the last interest rate decision, last time around we saw one memebr of the Fed vote in favour of a rate hike which did give the Dollar a little boost.
If you have a currency transfer to carry out and you want to achieve the very best rates of exchange either for your company or a personal transaction, along with highly valuable market knowledge then why not contact me (Daniel Wright) by email on firstname.lastname@example.org with a brief description of what you are looking to do and a contact number and I will be more than happy to assist you personally.
Even if you currently use another broker you may be surprised at how much you can save by getting in touch as a small improvement on an exchange rate can make a big difference to you.
I look forward to hearing from you.
Pound Sterling Forecast… The week ahead – A quiet week ahead for U.K economic data, Could this be the week the Dollar fights back? (Daniel Wright)
Today has so far been exceedingly quiet on the markets with very little economic data out for the major economies leading to minimal market volatility across the board.
There is still very little to come out for the U.K for the rest of the week however all eyes may start to look towards the States and a flurry of important data due to come out from the middle of the week onward.
One thing to note is that U.S data can actually affect all major currencies as it does tend to impact global attitude to risk, this can lead to volatility for currencies such as the Australian Dollar, New Zealand Dollar and South African Rand.
The action really starts to hot up on Wednesday afternoon, first and foremost we have U.S GDP (Gross Domestic Product) data out at 13:30pm. GDP basically shows how much an economy has grown over the course of a specific period and expectations are for some really solid growth, should these expectations be met or indeed exceeded then the Dollar may have a good afternoon against all major currencies.
A little later in the evening we have the Federal Reserve interest rate decision, which also will confirm any changes in the tapering of QE and will be followed by a monetary policy statement by Janet Yellen where investors and speculators shall be hanging off of her every word. Any mention of interest rate changes could give us a very lively evening.
Janet Yellen has mentioned recently that unemployment will be key for interest rates going forward and Friday we see two really key employment releases with Non-farm payroll data and the official unemployment rate for America both coming out at 13:30pm. Non-farm payroll measures the number of people in Non-agricultural employment during a specific period, Non agricultural because this can be majorly affected depending on the season.
Personally I am going to stick my neck out and say that this has the potential and could be time for the Dollar to start to make a come back after a fairly weak few months, of course if the data is poor for America we could easily see rates go the other way but I feel that things are due to pick up for the States and the Federal Reserve may start to echo this in their comments and actions.
All in all if you have any major currency exchange to carry out either this week or in the coming weeks and months then now may be a good time to get in contact with me personally. I have years of industry experience and work for a company that has won many awards not only for our rates of exchange but also customer service. Feel free to email me directly on email@example.com with a description of what you are looking to do and a contact number and I will be more than happy to get in touch with you.
Sterling exchange rates have remained fairly flat against most majors in the last week of trading, still hovering around a five year high to buy Dollars and a 20 month high to buy Euros.
With a fresh month starting tomorrow and plenty of economic data due to come out I thought I would give you an overview of what we are due to see released this week.
Overnight – We have the RBA (Reserve Bank of Australia) release their interest rate decision at 05:30am tomorrow morning and although no change to interest rates is expected all eyes will be any comments on the value of the Australian Dollar and if the strength of it is again viewed in a negative light by the RBA then we may see the AUD become cheaper to buy overnight.
Tomorrow – European data will be the main focus in trading tomorrow morning with a host of manufacturing data along with unemployment data from Germany, Italy and the Eurozone as a whole. The unemployment rate is expecting to stay at 11.7% so any alterations to this could give the Euro a volatile morning tomorrow to start off the month. U.K manufacturing PMI is also due out at 08:30am and a minimal drop is expected so unless there is any major change to this I would expect to see a huge amount of movement off the back of it.
Wednesday – Australian Trade balance figures will come out overnight and then we have European GDP (Gross Domestic Product) figures are out at 10:00am which should set the scene for the day for Euro followers. Speeches from the RBA Assistant Governor Debelle and Federal Reserve’s Janet Yellen will also be of great importance for the Australian Dollar and U.S Dollar.
Late night on Wednesday/Early morning Thursday Australian Building Permits and Retail Sales, along with some services data from China could round off a busy week for the Australian Dollar with a bang. Personally I Feel we still have gains to make over the AUD however it has been holding well and truly firm over the past month or so, which is always a concern when U.K economic data has been so good.
Thursday – Thursday we have Services PMI data from just after 8:00am until 09:30am for the Eurozone and U.K with no great alterations to the previous month expected.
In my opinion the main focus for Thursday will be the ECB (European Central Bank) Interest rate decision at 12:45pm and more importantly the press conference shortly after it at 13:30pm. With rates being cut last time around I would be surprised to see the actual rate decision throw up much but the press conference held by head of the ECB (Mario Draghi) always tends lead to a great deal of market volatility.
It usually goes on for around an hour and investors/speculators will be hanging off of his every word, we have seen anything up to a 1.5% swing (£1500 on buying a €125,000 property) during this time frame so if you are in the process of buying or selling a property abroad in Euros it will be prudent to make me aware so that I can inform you of any potential opportunities that may arise.
Friday is Independence day therefore a bank holiday in the States and very thin on the ground for economic data so unless any surprises pop up the markets may be a little more range bound. Do be aware though that due to there being a bank holiday in America there will be thinner trading levels therefore smaller pieces of economic data can have a larger effect than normal.
If you have a requirement in the future but you do not yet have the full availability of funds you can book out a forward contract. This is where you can book a rate out for up to a year in advance with just a small deposit, removing the risk of the currency market making your purchase any more expensive in the future.
This is ideal if you are in the process of buying a property overseas as you can know exactly how much the property is going to cost you today and eliminate the risk of the Pound dropping away again and missing out on this great opportunity.
I look forward to speaking with you if you have any questions or queries or you would like to book out a rate of exchange.
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Sterling exchange rates following inflation data – The Bank of England is stuck in a tricky position to say the least (Daniel Wright)
The Pound has risen ever so slightly this morning following inflationary data coming out slightly higher than expected.
The Bank of England would like the Pound to be weaker but the problem they face is that the lower the Pound the more imports will cost, therefore goods are more expensive which is not good for inflation.
Raising interest rates to combat inflation will lead to more expensive borrowing costs for everyone and growth being stunted due to less investment.
Not a nice position to be in – A rock and a hard place comes to mind!
For those of you that do not follow the markets the reason that this has led to the Pound gaining value is that the Bank of England do not want to have inflation getting too high and this is a sign that is is creeping up (things are getting more expensive to buy). The best way top tackle high inflation is to raise interest rates and a hike in interest rates generally is seen as positive to the currency concerned as it makes it more attractive to investors.
The currency markets do move in advance of things like this happening which is why the Pound has gained as the chance of a rate hike has increased ever so slightly.
Of course there are a lot of other factors that may affect rates in the coming days, we have the Bank of England minutes tomorrow morning which will show us how many members voted in favour of or against both Quantitative Easing and an interest rate change.
Indications that we are on the edge of further QE may be seen as negative for the Pound and the last few months this has been the more likely however any indications that members heads are moving towards a hike in rates could lead to another boost for Sterling.
Be aware we also have the budget tomorrow which in all honesty is rarely a big market mover however you always need to be cautious of a surprise popping up!
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