The pound lost slightly today in early morning trading due to PMI Manufacturing data coming out worse than expected. The figures still pointed to a sector in expansion, but were not a strong as predicted. This release makes tomorrow and Thursday’s PMI data key for anyone buying or selling the pound this week.
These PMI (Purchasing Managers Index) surveys are a snapshot of the relevant sector and provide the most up to date information relating to an economy. They are of course not definitive, but for anyone looking to make a transfer this week or month, they could well set the pace. Don’t forget technically the UK is in recession. The next revision is not until 24th May, but with the currenct estimate at -0.3%, will take quite some upgrading to boost the UK’s current outlook.
Tomorrow at 09.30 we have UK PMI Construction. Construction was the sector that apparently dragged the UK down last quarter and it is expected that this sector like Manufacturing this morning will be slowing down. Tomorrow morning we also have German PMI Manufacturing and German Unemployment. As the biggest Eurozone economy this is well worth being aware of if considering a Euro trade. We are still at close to a 20 month high buying euros with sterling but these data sets could easily change the course for the day.
On Thursday at 09.30 we have UK PMI Services. As with today and tomorrow’s PMI data the Service sector too is expected to be slowing down. As the key concern for the UK is growth, further negative news could really hamper the pound and even cause it to lose value. Thursday afternoon sees the ECB (European Central Bank) rate decision which could well stoke some movements on GBPEUR and EURUSD. And talking of the dollar, we have perhaps the biggest release of the week on Friday with US Non – Farm Payroll. This can move the market on all currencies as investors move money according to what they think may happen. If you are making or considering any currency exchanges it really is worth being aware now of what may happen so you do not miss out. Exchange rates move every few seconds and we can help not only limit your exposure using our wide range of contracts options and making sure you are up to date with the latest movements, but also make sure your trades go through at the very best commercial rates, above that offered by other brokers and banks. Feel free to make a comparison with anyone of the team directly or by using the contact form on the right hand side. We always go that extra mile for clients who contact us via this site!
And I must say Congratulations go to Daniel for some excellent predicitions yesterday! This just goes to show how by listening to us clients can save money. Of course there are no guarantees but because of our inner knowledge of what actually drives exchange rates we can make what can turn out to be pretty accurate predictions.
As well as the above data there are many more releases concerning the USD, AUD, NZD and CAD! If you would like any further information I will be happy to personally assist. You can call me direct on 01494 787 478 or if you prefer email via email@example.com
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