Sterling exchange rates slipped yesterday on softer construction data. Although still experiencing expansion it slipped from 64.6 to 62.6 in January and house building grew at its slowest pace in four months. The real test will be the impact these figures might have on GDP data, and this could well give a slight correction to the pound later this month. Looking at today’s data in the UK we had UK PMI data for February for the services sector. This was stronger than forecast and has lent support to the pound pushing GBP/EUR rates back close to 1.22.
The big data this week will be tomorrow’s Bank of England and ECB interest rate decisions at 12:00 and 12:45 respectively. With disinflation a major cause for concern in the Euro zone there is an outside chance the ECB will cut interest rates at tomorrows meeting. Should this occur we could see some strong buy opportunities tomorrow.
Should you have an upcoming bank to bank money exchange to arrange and you would like to discuss the current market trends and the timing of your transfer then please get in touch. As a specialist foreign exchange broker we have multiple contracts to help our clients maximize their exchange. To find out more information on the full currency service we provide please email Mike at [email protected]