What lies ahead in May for Exchange Rates? (Tom Holian)

GBP EUR Looks to Employment Figures for Support

As the month nears its conclusion we could see a bit more market volatility compared to most of the month. The Eurozone Consumer Price Index is due imminently and this will be closely looked at by people with a currency transfer to make. Yesterday’s German inflation figures showed a fall to -0.2% and if inflation continues to fall in the Eurozone this could lead to the ECB having to intervene at next month’s meeting by going down the line of Quantitative Easing.

Later this afternoon the first quarter US GDP data is published at 130 and the Federal Interest Rate decision is announced at 7pm tonight. Expectations are for the Fed to continue tapering and this could have an impact on US Dollar strength so if you have a currency transfer to make then get in touch.

***BREAKING NEWS*** The Eurozone CPI has just come out showing a fall in inflation from 0.8% to 0.7% which has seen the GBPEUR rate increase marginally. This is likely to put pressure on the ECB to change monetary policy so keep an eye out for next week’s ECB interest rate decision due out on Thursday 8th May.

Tomorrow is a holiday across Europe so don’t expect too much to happen with exchange rates on the continent. Also, due tomorrow morning the UK publishes UK Mortgage Approvals with the expectation for 71,000 new approvals giving a further boost to the housing market. The UK housing market has almost gone hand in hand over the last couple of years with Sterling and with UK house prices on the rise again recently this has led Sterling to challenge fresh 3 month highs recently.

If you have a currency transfer to make and want to save money compared to using your bank or another currency broker then contact me directly for a free quote Tom Holian [email protected]