This week looks like it could be a bad week for sterling and I think Wednesday will be the key date. Wednesday morning we will learn if the Bank of England considered anymore QE (Quantitative Easing) at their last meeting back at the start of the month. We are expecting no real changes but it is unlikely we will see anything that would give sterling a lift. Most of the data towards the end of last month for the MPC (Monetary Policy Committee) to base their decision on was poor and henceforth we may see some of this sentiment reflected in the voting.
This would lead to GBP weakness and I think even if we don’t see the above actually happen, more often than not we do see GBP weakness before the Minutes in anticipation of a negative piece of news.
Looking into next week we have GDP (Gross Domestic Product) data for the pound which is now widely expected to show growth for the first quarter of 2013. If you are looking for slightly better rates then this may be the opportunity you are waiting for. Having said that it could easily show a contraction which would be GBP negative as everyone had been expecting.
It is impossible to tell you exactly what will happen in the future. And as much as I enjoy looking after my clients and making forecasts, if I genuinely knew exactly what would happen I would probably not be telling everyone – unless you were really nice to me :D. What I can do is highlight the important upcoming events and make predictions which will allow you to make an informed decision on how to approach your transactions.
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