Busy week ahead

As we enter October, a busy week lies ahead for economic data likely to affect exchange rates. The last quarter of 2012 is also likely to bring continued volatility as world markets continue to react to the unresolved problems in the Eurozone which will continue to affect economies, and therefore currencies, around the world.

This week we have interest rate decisions or policy statements from the UK, Eurozone and USA. While rates in the UK and Europe are unlikely to change, the ever-present prospect of further Quantitative Easing could weigh on the Pound, and in Europe the accompanying statement from ECB President Draghi is often an influence on the value of the Euro. In the USA, the Federal Reserve reveal on Thursday night what prompted their own extra round of monetary easing last month, which has weakened the US Dollar and improved rates for sending money to the USA.

The important UK housing market is also under scrutiny this week with house prices this morning and mortgage approvals tomorrow. Most importantly for the UK this week are the construction and services sector growth figures on Tuesday and Wednesday, which are a precursor for the next round of GDP figures – will the UK be able to crawl out of recession and give the Pound a boost, or will the Eurozone crisis continue to have a knock on effect and send the Pound back lower?

With the Pound trading around recent highs against a lot of currencies, now could be a good time to look at securing your exchange rate. At Currency Index we can fix rates up to 2 years ahead, so with uncertainty still surrounding financial markets, do give us a call to discuss your options.