Whilst sterling has taken a slight wobble this week due to the national deficit once again rising (it was supposed to come down according to the Coalition wasn’t it?!) giving credit rating agencies pause for thought, the Euro is likely to have a very testing week again next week. Whilst we do have the Bank of England decision next week nothing is expected to change there, and some UK releases like Services PMI are forecast to be positive.
However market attention on the Euro is in stark contrast to the UK. We have inflation data out on Tuesday which has been a major headache for the ECB with how low it has been- in fact there are many who think the ECB may be forced into action at their own meeting next week which could seriously damage the Euro, hence the weakening trend of late. With GDP figures on Wednesday it is set to be a very busy and testing week on the currency markets and any poor data could trigger substantial Euro weakness. If you do have Euros to sell and are not of a gambling nature you may wish to move swiftly. If you would like help making a currency transfer then feel free to email Colm at [email protected] and I would be happy to help.