Pound carries momentum to new week – Currency week ahead
11 September, 2017
News for the currency week ahead: After several days of low trading and a grey cloud over the Pound, last week provided much needed relief and sees GBP carry momentum to a new week of trading. This was mainly due to the ECB announcement that there will be no changes to the QE programme till the end of the year and no interest rate hike, allowing Sterling to make gains Thursday and Friday. Mario Draghi pointed out that the volatile Euro currently in the markets was a cause of uncertainty and citing it as one of the reasons as to why no changes will be made over the next 3 months. Full report of the ECB conference can be seen here.
However with a busy week ahead with inflation data out later this week and the current Euro strength, even after a slight setback, could see levels drop quickly. Should you have any immediate requirements speak to your CI account manager to discuss your best options.
Not only did GBPEUR rate improve by a cent last week, there were also significant gains made against the Greenback, ending the week on a one month high. This was supported by better then expected industrial production figures posted by the UK. This rally has led analysts to change their forecast slightly for GBPUSD and expecting GBP to be more resistant to the Greenback.
Currency week ahead
With another busy week ahead that includes inflation data, and a vote on the interest rates in the UK. Both of which historically have had a major effect on the markets.
GBP CPI 9.30
GBP average earnings Index 9.30
USD PPI 1.30
USD Crude oil inventories 3.30
AUD employment change/Unemployment rate 2.30 (am)
GBP MPC official bank rate vote 12
USD Unemployment claims
USD retail sales
Why not take advantage of our forward contracts and secure the rate should your requirement be further along the road to avoid being disappointed with the rates later. Speak to a CI staff member for some friendly guidance.