Sterling is slowly climbing again versus the Euro after the ECB comments yesterday, and were reinforced after the US non-farm payroll data this afternoon. There isn’t much in the way of UK data next week, and we aren’t expecting any surprises from the Bank of England meeting, so much will depend on some of the other major currency releases.
Monday sees Swiss inflation which has been on the low side. If this trend continues it could be great news for GBP CHF exchange rates, as sterling is already creeping back.
The early hours of Tuesday sees the Bank of Japan rate decision- there has been a lot of talk about the BofJ intervening again so the Yen has been weakening a touch in advance of this so expect volatility here.
Wednesday evening is when the next set of Fed Minutes are published so this is likely to have an impact across the board on exchange rates, as well as sterling Dollar in particular. If you are buying Dollars it does seem like the greenback is finally fighting back against the pound so be wary on the back of this.
As we go into the early hours of Thursday morning, we have Aussie jobs figures. The Aussie has been pretty strong against the pound as the RBA have made it clear they are not looking to cut interest rates again in the near future, allowing the Aussie to reverse some of its near collapse early in the year. If jobs figures are good it could help reinforce new confidence in the Aussie, especially if supported by Chinese PMI data on Friday.
The other big inflation news on Friday will be German CPI- inflation for Europe, or the lack of it, is now becoming a big concern so if the biggest economy in the EU produces a weak figure then expect Euro weakness.
If you do have a currency transfer to make and would like to find out more about our exchange rates and transfer service, please feel free to email me, Colm, at [email protected] and I would be happy to help.