Sterling rates have been wobbling today in anticipation of tomorrows key data release. Wednesday sees what may be the largest data release for the UK through the whole month of February, the UK Quarterly Inflation Report. This is when the Bank of England is expected to provide a clearer forecast of their their Forward Guidance Policy. The expectation is that interest rate will be pushed back as Wage Inflation in the UK is still to low to accept a change in rates, people would not probably afford mortgage payments putting the recovery in the UK firmly into a reverse gear. As a result sterling levels and prices are expected to fall tomorrow, by how much however really depends on how clear the bank is and how informative their comments are.
So as a result if you are either buying or selling currency in the near future this will be a data release which affects you and how much money you receive. Even if you are buying euros within the next 6 weeks I would strongly suggest doing your calculations to see if you can take the risk and hope that rates will recover up to levels we have been seeing more traditionally this year. If you would like to discuss your position, get live quotations and forecasts please feel free to contact myself – STEVE EAKINS via my email address: [email protected]