Sterling exchange rates traded within a think range during yesterday’s trading session, with the GBP/EUR exchange rate trading within a range of just half a cent.
Since breaking above the 1.15 threshold the GBP to EUR exchange rate has mostly hovered between 1.1500 and 1.1550 and that’s where the pair are trading at the time of writing.
After quite a volatile month or two, especially in the wake of the Mini-Budget almost two-months ago, the markets seem pretty calm. This may continue throughout the week as the markets could quieten down even further on Thursday and Friday this week.
As it’s Thanksgiving in the US this Thursday US markets will be closed, and the Friday following Thanksgiving is likely to also be very quiet due to no economic data releases out of the US. As a result, trading volumes could be thin towards the end of the week.
This could result in Sterling exchange rates continuing to trade within it’s current thin ranges. Alternatively, there can be swings in the exchange rates when trading volumes are thinner if there is buying/selling pressure in one direction so it’s worth being aware of this if you’re planning on making a currency exchange towards the end of the week.
As a quiet end to the week is expected in terms of data releases, the markets will towards tomorrows PMI data releases are there is an abundance of them. PMI releases are an indicator of the economic situation in the area of releases and figures above 50 indicate health and growth. Figures below 50 indicate a contraction in the sector the sector they’re covering so markets often look to this data releases for indications of the heath of the economy.
There will be PMI releases for Manufacturing and Services in the UK, with the services sector being the UK’s most important. The same area’s of the EU economy will also see data releases and then in the afternoon the same figures will be released from the US.
Wednesday could be the busiest day of the week for currency volatility due to these releases.
If you’re planning on making a currency exchange with us you can contact me (Joe) on [email protected] directly. I will be happy to offer you a quote and explain how our service may help you save money when making currency exchanges. We also offer rate alerts to help keep you informed regarding price fluctuations.