Tag Archives: the week ahead for the pound

Busy week ahead for sterling exchange rates!!! (Ben Amrany)

May 13, 2013   Economic data, Sterling strength, Sterling weakness

After last week’s losses against the USD and a steady rate hovering in the 1.18′s against the Euro this week could be a little more volatile for sterling exchange rates. Data is a little light for the UK in general this week bar Wednesday when things could really get interesting. The pound will more than likely be volatile though as there are numerous data releases all over Europe.

Those of you that have an interest in GBP/EUR the next couple of days could be vital for how the currency pair performs. Tomorrow morning at 7am Germany are releasing some key inflation figures followed by the ZEW survey which shows the sentiment between investors and analysts. Often this can be a market mover and I personally feel this may give the pound an opportunity to push up to the late 1.18’s possibly 1.19. If you are selling Euros you may wish to look at securing your funds today before this may occur to stop your recent losses.

On Wednesday we will see some of the major European countries release their GDP figures. GDP is a measure of how their economy is performing and over the last couple of weeks the UK has posted a healthier picture which has strengthened the pound significantly since the Cyprus event with a gain of around 4.5%

All of the countries bar from Germany is expected to show a contraction in their economic growth. So if they do post some better than expected figures then it is on Wednesday morning that we may potentially see the Euro gain against a host of majors.

Now in the UK this Wednesday the quarterly inflation report out at 10.30 may give the pound a boost. It seems that the BoE are slowing down their QE programme. If they give any hints in their report that they are happy with the rate of inflation and the slow economic recovery this could boost the pound and recover some of the losses seen against the USD.

Could we hit 1.20 against the Euro? It would be the highest level seen this year and if we do I would highly recommend securing your Euros.  Let me know your thoughts by emailing me at bma@currencies.co.uk

Wednesday also brings a raft of unemployment figures. Unemployment is slightly falling as the slow recovery in the UK kicks into force but with 7.9% still expected to be unemployed we will need to see a fall in this figure for the pound to rise.

Please do be cautious if you have a currency transfer to make. These are two of the key releases which can cause the pound to be very volatile against a host of currencies. If you have a transfer to make in the next few weeks Wednesday’s
release may give you an indication if you should hold out a little longer before making your conversion.

If you do require exchanging funds then please do inform em of your requirement and I can explain the options available to you plus inform you how you can get a btter rate than through the banks. Just email me at bma@currencies.co.uk with your requirement and I will talk you through the options that are available to you.

Thank you for reading

Ben Amrany

bma@currencies.co.uk

 

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Still a very busy week for Pound Sterling Exchange rates.. Is the Pound going to fall soon? Let us ask the PMI surveys…

May 1, 2012   AUD, CAD, CHF, Economic data, Euro, NZD, Predictions, Sterling strength, Sterling weakness, USD

The pound lost slightly today in early morning trading due to PMI Manufacturing data coming out worse than expected. The figures still pointed to a sector in expansion, but were not a strong as predicted. This release makes tomorrow and Thursday’s PMI data key for anyone buying or selling the pound this week.

These PMI (Purchasing Managers Index) surveys are a snapshot of the relevant sector and provide the most up to date information relating to an economy. They are of course not definitive, but for anyone looking to make a transfer this week or month, they could well set the pace. Don’t forget technically the UK is in recession. The next revision is not until 24th May, but with the currenct estimate at -0.3%, will take quite some upgrading to boost the UK’s current outlook.

Tomorrow at 09.30  we have UK PMI Construction. Construction was the sector that apparently dragged the UK down last quarter and it is expected that this sector like Manufacturing this morning will be slowing down. Tomorrow morning we also have German PMI Manufacturing and German Unemployment. As the biggest Eurozone economy this is well worth being aware of if considering a Euro trade. We are still at close to a 20 month high buying euros with sterling but these data sets could easily change the course for the day.

On Thursday at 09.30 we have UK PMI Services. As with today and tomorrow’s PMI data the Service sector too is expected to be slowing down. As the key concern for the UK is growth, further negative news could really hamper the pound and even cause it to lose value. Thursday afternoon sees the ECB (European Central Bank) rate decision which could well stoke some movements on GBPEUR and EURUSD. And talking of the dollar, we have perhaps the biggest release of the week on Friday with US Non – Farm Payroll. This can move the market on all currencies as investors move money according to what they think may happen. If you are making or considering any currency exchanges it really is worth being aware now of what may happen so you do not miss out.  Exchange rates move every few seconds and we can help not only limit your exposure using our wide range of contracts options and making sure you are up to date with the latest movements, but also make sure your trades go through at the very best commercial rates, above that offered by other brokers and banks. Feel free to make a comparison with anyone of the team directly or by using the contact form on the right hand side. We always go that extra mile for clients who contact us via this site!

And I must say Congratulations go to Daniel for some excellent predicitions yesterday! This just goes to show how by listening to us clients can save money. Of course there are no guarantees but because of our inner knowledge of what actually drives exchange rates we can make what can turn out to be pretty accurate predictions.

As well as the above data there are many more releases concerning the USD,  AUD,  NZD and CAD! If you would like any further information I will be happy to personally assist. You can call me direct on 01494 787 478  or if you prefer email via jmw@currencies.co.uk

We look forward to hearing from you

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