The value of the pound has shoot up this week, a majority of the gains were seen on Tuesday which was the best day for the Pound in nearly a month. The movement there was a lot of promising UK data including a boost in productivity, GDP figures and an IMF report which increased the growth forecast for the UK. This climb gave our traders the opportunity to buy both the euro and the USD at a 1 month high. The IMF report was the most influential following its upwards revision of growth in the UK through 2014. Growth is now expected to climb by 2.9% compared to 1.5% they forecasted less than 12 months ago. This means that the UK is the best performer this year across the G7, even higher than the world’s largest economy the US.
Following the breaking news the market SPIKED up giving some of the best prices we have seen for MONTH. Here we offer a number of services including both SPIKE NOTIFICATIONS and RATE ALERTS which are designed to help our clients get the most out of the market. For more information simply get in contact with myself – STEVE EAKINS via email at [email protected] or by calling me on 0044 1494 787 478.
Following these gains there normally a risk that levels fall back as traders take their profits but I believe there may be another day in it yet as today we have more data due, this time from the central banks both sides of the channel. The BOE release their Interest Rate Decision which is expected to have no surprises and therefore little impact on the markets. Everyone will really be focusing on the European Monthly Report which is released at 9 am today. The Euro has also climbed in value against most currencies like the USD, which has reached a 29 month high only last month. This climb in its value is greatly hurting the single currencies competitiveness with exports and has increased the risk of deflation. The bank has made commentary suggesting that they are aware and that they plan to bring in new policies to tackle it, all of which are expected to weaken the euro. These new policies are probably not going to happen for a month or two but any hints released today could impact the value of the GBPEUR.
My view is that current levels are at the top of GBPEUR’s range over the next 7-10 days meaning buyers may want to trade sooner rather than later. For more information simply get in contact with myself – STEVE EAKINS via email at [email protected] or by calling me on 0044 1494 787 478.