Sterling Forecast this Week (Tom Holian)

Pound to Dollar forecast: Sterling continues to decline against the US Dollar

Today is expected to be quiet for Sterling Euro exchange rates as data is thin on the ground for the UK. Indeed, during this morning’s trading session we have only seen a small movement from high to low of 20 pips. Eurozone industrial production this morning was not too much different from expected so again exchange rates have remained very stable.

Tomorrow however is full of data releases across the globe so expect there to be quite a large movement for Sterling during tomorrow’s trading. The Consumer Price Index is published at 930am and with inflation often going hand in hand with interest rate policy the announcement will be key for anyone with a currency requirement involving Sterling. Prior to this the Eurozone also releases their own set of CPI data at 7am so I expect the exchange rates to move in the morning’s session. If the UK CPI is better than expected I think we’ll see a positive move for the Pound against the Euro so if you’re considering buying Euros then get in touch Tom Holian [email protected]

As always over the last fortnight the US government shutdown is still concerning investors across the globe. With GBPUSD exchange rates having dropped below 1.60 recently the currency markets are expecting the situation to have sorted itself prior to the deadline of October 17th and if there is no resolution offered it could send shock waves through financial markets. Personally, I believe a resolution will be offered but I think it’ll be left very late as the Republicans and Democrats are currently in a stalemate.

Australian Dollars
The Australian Dollar exchange rate has continued to improve against Sterling recently as another piece of good news comes out of China today. CPI in China this morning was shown to be better than expected at 3.1% compared to the consensus of 2.9%. For more information about how to save money when buying currency then feel free to contact me via email. Tom Holian [email protected]

If you have any specific questions relating to this report then feel free to get in touch.