The start of a new month brings a whole new set of economic data to move the currency markets. The first week of the month is often a week where we see movements that will shape the direction of the rate for the rest of the month.
Most importantly on Thursday we have the Bank of England and European Central Bank interest rate decisions. Whilst no changes in policy are expected the press conference after the ECB meeting is often a market mover.
Potentially we could see some more Quantitative Easing by the BoE which would weaken the pound. However on the whole economic data has been better and yesterday’s good news for Manufacturing should provide a good reason not launch more QE.
Looking at today we have Construction data at 09.30 am. This and tomorrow’s Services data could easily cause some movement on the pound and if last month’s improved GDP data is anything to go by, I expect sterling to find some strength and rates on GBPEUR to get better.
If you are considering any currency exchanges please contact me personally for all of the information you need to make an informed decision on when to execute your currency exchanges. The current trend is looking quite good for Euro buyers, but bad for euro sellers. For that reason I think Euro sellers should move sooner.
For a full overview of everything involved in trading at the best prices please contact me Jonathan on [email protected]