Pound Sterling forecast – The week ahead (Daniel Wright)

Pound to Dollar Rate Slides to 1.38

The next week or two is where we will start to see the real nitty gritty data start to appear from December and will give us a good indication as to whether or not the terrible weather the U.K has experienced over the past 6 weeks or so has really had much of an impact on economic data.

It is actually d=fairly quiet on the data front this week for the U.K however there are two key releases that you should be well aware of.

On Tuesday we see the release of core inflation which could help to impact on the Bank of England’s interest rate stance. At present inflation is dropping and around the Governments target level of 2% which is actually good news, the problem is that wages are not growing in line with inflation which at present rules out the prospect of an interest rate hike as it could potentially put a lot of people into trouble.

A lot is measured from CPI (Consumer Price Index) and with expectations of this remaining at 1.8% any figure other than this may lead to a sharp fall or rise in the value of Sterling so if you have a currency transfer to carry out involving buying or selling the Pound then Tuesday morning at 09:30am or just after will indeed be a key time to watch the rates.

The second release of the week that I feel could have a big impact on the value of the Pound id Retail Sales figures on Friday morning. December is always a key month for retail sales with the festive sales. We have heard how many of the larger stores have performed and it is a mixed bunch so it is exciting to see what comes out on Friday morning. Once again, depending how the data comes out we may see a very volatile period shortly after for Sterling so it may throw up some great buying or selling opportunities.

If you are in the process of buying or selling a property or your company has the requirement to buy or sell large amounts of currency and you would like my personal assistance then feel free to get in touch with me directly and I will be more than happy to explain the various options available to you inclusive of stop loss, limit orders and forward contracts.

Quite simply not only can I save you money when you come to booking out your rate of exchange but I can also offer a helping hand along the way as I completely understand most people do not carry out large currency transactions every day.

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