Sterling reached a 19 month high against the Euro last week, This has presented those looking to buy Euros with an exceptional opportunity compared to levels we have seen recently – If buying a property abroad or making business transactions this could save you a fortune!
The long term view is for further gains and I would anticipate to be above the 1.25 levels by the end of the year due to the severe debt crisis plaguing European Governments.
But the issue of debt also affects the UK shores and the short term outlook as we announce our own Austerity measures via the emergency budget on the 22nd June, could spell a temporary dip for the Pound.
Also worth noting is a report out today from the OBR (Office of Budget Responsibility), anticipated to scale down predicted growth figures.
There are a number of different data releases due out this week not just for the U.K but various other economies that will have an effect on the cost of you buying these particular foreign currencies.
These are as follows:
Tommorow – Reserve Bank of Australia meeting minutes, this will give an overview as to how they came to their latest interest rate decision and give indications as to how they may deal with their economy going forward. We also see the Bank of Japan interest rate decision (no change in rates is expected).
For the U.K we see CPI (Consumer Price Index) data out which is a measure of inflation and could lead to market volatility.
Wednesday – Wednesday is key for the U.K with key unemployent figures being released at 09:30am – any change to expected figures could lead to major market movements.
Thursday – This will be another busy day with releases of note being Retail sales for the U.K in the morning, the Swiss announce their interest rate decision and in the afternoon we see the U.S take their turn to announce CPI.
Friday – A quiet day expected on the markets however as regular traders will know there are always surprises popping up so if you have a transfer to make ensure you are in close contact with a currency specialist who can keep you up to date with market movements.
If you are buying a property abroad, have business transactions to carry out or need to get money overseas for any other reason and want the best exchange rates, just fill in the form on the right hand side and one of the experienced traders that write on this blog will be in touch shortly.