Today’s exchange rates could be in for a fairly volatile trading session today as we see a number of releases on the financial markets.
UK Manufacturing which has been relatively strong as of late and a revised figure for UK GDP is released this morning. If figures come out better than expected we could see another surge for the Pound this morning against the Euro and other major currencies.
We also have the release of the monthly report by the European Central Bank which will focus on the recent activity in the Eurozone which is likely to have an effect on the currency markets.
Tomorrow the Bank of England releases its Interest Rate decision and whether the UK will look at further QE. My personal opinion is that with Mark Carney’s recent forward guidance QE has been put into the background for the time being which has helped the Pound reaches its highest level early this month since January vs the Euro.
The US shutdown has had an impact of GBPAUD exchange rates recently as well. GBPAUD rates have fallen recently dropping into the 1.69 levels on occasion as global investors increase their risk appetite. I feel that the shutdown is just a matter of time before things are resolved and this could see riskier currencies strengthen against Sterling across the board.
Currently 800,000 workers are still unsure about when they will get paid and concerns are mounting that the world’s largest economy is showing signs of a power struggle. China is the US’s largest creditor and owns a huge amount of treasury bonds and they are voicing concerns that the US needs to act quickly in order to avoid further financial problems.
For further information about saving money when buying or selling currency feel free to contact me directly Tom Holian [email protected] Working for one of the UK’s leading foreign currency brokers I am confident we can save you money compared to using your own bank.
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