Today rates will be interesting to watch after yesterday’s busy day. We had a strong run against the dollar creating a 16 month high and a movement of nearly a cent through yesterday’s trading session against the Euro. A majority of the movement came from two stories; firstly that the US has avoided falling over the Fiscal Cliff, (again a 11th hour agreement as we suggested would happen,) secondly the new month and new year demand for safe shares pushed stock exchanges across most of the world skyward affecting their respective currencies.
News was also released from the UK showing a surprising increase in manufacturing figures, its strongest for over 6 months which added speculation that the UK may avoid re-entering a triple dip recession in the near future.
So what happens now for pound euro exchange rates this week?
Well later today at 9:30 we have UK Production Manufacturing Index which is expected to show an improvement creating sterling strength early in today’s session. In the afternoon is US data with focus on the most recent FED meeting minutes, (I expect very little as they cannot do anything without knowing if the debt ceiling would have been sorted. On Friday we have Mortgage approvals, Consumer Credit and PMI for services being released at 9:30 from the UK. Most are expecting this to be a fairly non-event as a majority of the reports are expected to show no change. At 10:00 we have European Consumer Price Index, this is expected to show a fall so euro buyers may want to wait till until this data is published.
In summary I would expect a movement of no more than 1.5 cents against the euro over the next 48 hours, potentially downward. This makes a difference of nearly £2,000 on a 200,000 purchase!!! If you are looking at moving over this period or in the short term feel free to contact us to register your interest for updates, or email me at [email protected]
Thank you and a happy New Year to all our readers.