GBPEUR rates have remained steady today, even after a mixed release on PMI figures earlier today. Tomorrow and Thursday are the key days for Sterling with both UK Unemployment and UK Retail Figures being released. Unemployment is becoming very important to the future of the Pound as any sign in unemployment falling increases the chances of the UK Interest Rate in the UK climbing. The Bank of England stated earlier this year that rates will change once Unemployment across the UK falls to 7%. UK Retail figures are also key and in fact normally the biggest catalyst for change, this is because it is impacted by large sporting events, the weather and Bank holidays as these normally get the general population down the shops at the weekend spending their money. Retail figures are on Thursday morning and probably going to give GBPEUR buyers the best price this week in my view.
Europe also has a host of data released this week – there largest report is due tomorrow morning when EUROPEAN Consumer Price Index is released. It is expected to show no change and in my view will probably be a none event. There has however been news form the Single Currency this week that both Spain and Ireland will be back to health by the end of the year – even after their huge investments over the last 4 years when the single currency almost failed.
GBPEUR traders this week I would suggest trade on Thursday morning – Potentially seeing a gain of over 1 ½ cents or adding €3,000 to a £200,000 purchase.
I would suggest GBPEUR sellers to trade sooner rather than later to avoid this potential movement against them.
Later this week we also have the pending US shut down deadline. This is when they run out of money to pay their debts which is expected on Thursday. There are a number of potential outcomes politically which could each result in a different impact on the Currency market. The two most popular outcomes is that they either provide a short term extension or a long term change in policy. In either case certainty will return to the market and many expect money to flow back into the USD, the difference between these outcomes will simply change the USD demand in the market.
When this demand increases as USDEUR is the world’s largest traded pair it seems probable that many will be selling the Euro making it cheaper to buy but also more expensive to sell. This should equally be part of GBPEUR traders this week.
If you are trading either of these currencies and would like more information on our live forecasts, live prices, rate alerts or SPIKE NOTIFICATIONS please make contact with myself – Steve Eakins – via email at [email protected] or by calling the number on the top of this page to get through directly to the trading floor. We have been helping people for over 12 years achieve the best exchange rate both against the banks and other brokers. Simply put if we could not help – we would not be in business.