Euro and US Dollar providing the fire on the markets

Last week saw a number of key announcements in the currency markets causing significant changes in many exchange rates. Sentiment towards both the Euro and US Dollar turned a corner last week with the single currency losing 3 cents against the greenback. The debt crisis in the US saw a shift in investment into the Euro which subsequently saw GBP/EUR rates slide and GBP/USD rates hit year peaks. However with the Euro-zone cutting interest rates to new record lows, and with the US announcing far improved GDP figures and better than expected Non-farm figures, the power has shifted with GBP/EUR rates pushing back up to the highest this year, and GBP/USD rates starting to slide from their peaks. To summarise the pound is currently offering potential peak rates against the Euro and USD as concerns in the US start to fade and as GBP/EUR battle with the year high resistance point which is again widely expected to hold strong which should result in a negative correction in rates over the coming days and weeks. If you are interested in securing your future currency needs then Currency Index can do so for you with a 10% deposit using a forward contract option. Week Preview Today is absent of any significant data releases so expect a quite day on the market’s, ultimately providing a window to secure your exchange rate at current peak levels before risking the data ahead. The main releases to keep an eye on this week are detailed as below: Tuesday: 9:30am – UK CPI & PPI (inflation) Wednesday: 9:30am – UK unemployment 10:30am – UK BoE quarterly inflation report Thursday: 7:00am – German GDP 9:30am – UK Retail Sales 10:00am – Euro-zone GDP 1:30pm – US Jobless claims Friday: 10:00am – Euro-zone CPI