The Pound has been fairly range bound against the Euro of late however still remains over 10% up against the single currency since the turn of the year. A difference of over €15,000 per £100,000!!
Unemployment figures due out tomorrow morning at 09:30am will be key for the performance of the Pound during trading tomorrow. Figures are expected to remain at 5.6% and any change to this may cause a volatile start to the day.
Unemployment and average earnings figures are one of the key factors that will impact the Bank of England’s decision on when to raise interest rates so this data is extremely important.
Later in the week on Friday we also have European GDP (Growth figures) and inflation which will show us how much the economy within the Eurozone has grown or shrank during a specific period of time. Expectations are for a little improvement year on year so this may give the Euro a little strength, making it more expensive to buy.
You should at least make me aware if you do need to exchange soon as I can then act as your eyes and ears on the markets to try and ensure you do not get caught out if the markets take a turn for the worse. Also feel free to check out my section on forward contracts below. You can email me on firstname.lastname@example.org or call me on 01494 787478 if you do need to carry out a transfer soon.
Sterling has also been fairly range bound against the Dollar lately as investors and speculators continue to second guess just when an interest rate hike may be coming for the States.
Every time it looks like all signs are pointing towards an imminent hike in interest rates the economic data released appears to dampen expectations due to not quite being as solid as has been expected.
Personally I feel we may see a rate hike before the end of the year but if I had Dollars to sell I would be tempted to exchange at least half of my requirement sooner rather than later as if the hike continues to be delayed then rates may creep back towards the 1.60 level once again.
U.S Retail Sales are due out on Thursday afternoon so this is a key data release to watch out for if you are in the market to buy or sell USD in the near future.
You should at least make me aware if you do need to exchange soon as I can then act as your eyes and ears on the markets to try and ensure you do not get caught out if the markets take a turn for the worse. You can email me on email@example.com or call me on 01494 787478 if you do need to carry out a transfer soon.
Sterling – Australian Dollar/New Zealand Dollar
We have seen fantastic buying opportunities for both of these currencies over the past few months as China finally starts to show the cracks of growing at such a monumental rate.
Chinese data out overnight weakened both of these currencies after they had staged a minor fight back.Governor of the RBA Glenn Stevens still appears content to see a weaker Australian Dollar and data out from New Zealand has not been particularly promising so I feel both these currencies have the potential to still drop further. If you are looking to buy either currency however then it is key to remain vigilant as both currencies have the potential to turn around their trends extremely quickly and with great force.
Sterling – Canadian Dollar
After finally breaking 2 those looking to buy Canadian Dollars are also seeing a great opportunity compared to where this currency pairing has been sat for the past few years.
With oil prices seriously adding to the grey cloud currently hovering over the Canadian economy the outlook is fairly gloomy for the Canadian Dollar as it stands.
Once again though we do need to remember that it would not take much to see the GBP/CAD rate drop back below 2 should oil prices start to gather traction again so it is imperative that you keep a close eye on this pairing if you have an exchange to carry out.
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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