GBPEUR Forecast Week Ending 17-08-12

GBP EUR Slumps with Lower GDP Print

Exchange rates move every couple of seconds for a wide variety of reasons. Knowing what can move the rate and when allows you to make plans ahead of the event so that you can either secure a much better rate or move quickly should it start to turn against you.

Below is information on what to expect for the rest of week. If you are considering any currency transfers then please feel free to speak with us as we can help explain all of your options as well as provide a commercial rate of exchange, much better than the banks. Speak to us to find out how much you could save!

TODAY – The most important day for the pound with the Bank of England Minutes. Whilst no change in economic policy has been seen, Mervyn King made clear in his Quarterly Inflation Report things are probably going to get worse before they get better for the UK. With so much uncertainty a member voting the wrong way could really affect pound sterling rates. Today also sees UK Unemployment data which could easily alter the value of sterling.

Thursday – Retail Sales are released in the morning and will be the first sign of the Olympic effect. Has the Olympics benefitted the pound? Early indications suggest that no is the answer, however with all of the extra celebrating due to Team GB success there is bound to be some kind of boost to the economy. Historically Olympics do provide a boost to an economy and looking at the thousands of people in London clearly enjoying themselves and spending money, I am sure there will be some positive effects. We did however have a very wet couple of weeks at the start of July and this could have dampened what would otherwise have been a gold winning month for Retail Sales.

Friday – With no major economic data out for the pound, we will probably be debating the after effects of Wednesday and Thursday’s releases. We have Trade Balance and Current Account figures for the Eurozone which may well provide some further movement on Euro rates.

To speak with one of us you can fill in the contact form, or you can contact me, Jonathan directly on 01494 787 478 or email [email protected]