The start of the month is always a busy time on exchange rates and you often see much of the movement for the month take place in the first week. This is because there are a wide range of economic events and data releases which can give rise to changes in sentiment which is ultimately reflected in exchange rates.
The first three days see PMI surveys. PMI stands for Purchasing Managers Index and it is a survey of purchasing managaers and their attitudes to their business. By asking the same people simple yes / no questions monthly, you get a get a picture on how their relative businesses are faring. Questions include ‘Are your orders up this month compared to last month’ and ‘Do you feel more positive about business conditions than last month’. Simple yes / no answers allow a picture to be built up over time on how that sector is performing relatively speaking.
These releases affect the short term daily movements and are indicative of trends in the economy. We also have interest rate decisions which are hugely important and can greatly affect trends on a currency.
This week there is the possibility the Bank of England could increase its QE programme and the chance of an interest rate cut in the Eurozone. If you are unaware of the effects of such decisions please feel free to contact me directly for a full explanation as an understanding of what happens and drives the markets is key to getting the best exchange rates.
If you are considering any currency trasnsactions involving GBPEUR this week could be key so why not speak to a specialist to make sure you don’t lose out. My name is Jonathan and you can reach me directly on [email protected] or call 01494 787 478.
In my role as a specialist currency broker I have been assisting private and corporate clients moving money internationally for many years. As well as the blogs I have spoken at Emigration Seminars and been featured in numerous online and print publications. I look forward to hearing from you, thank you.