Euro rate up again

Yesterday we saw the Euro weaken again, delivering the best rates for buying Euros for nearly 3 months, as volatility in currency markets continues.

With little important data released through the day, the Pound traded higher against many currencies, giving us great opportunities for those of you buying Euros, Australian Dollars and Swiss Francs. The Canadian and US Dollars traded in tight ranges throughout the day.

The last couple of months have been particularly volatile for the Euro, with rates yo-yoing up and down around a 6% range in a short space of time. While it can be alarming to see rates moving so much, the value of having a good currency broker on hand if you have a significant overseas transaction to complete cannot be overstated to help keep you updated with the latest movements.

Unemployment today

After a quiet start to the week on the economic calendar, this morning sees UK unemployment figures for October released at 9.30am. As always the jobless numbers are one of the main indicators for the UK economy’s progress and can have a heavy influence on the Pound. With recent headline redundancies in British manufacturing, a poor reading could hurt sterling’s fortunes in trading today and set the tone for the rest of the week.

Bank of England Governor, Mark Carney, also gives a speech at 10.30am, and having last week talked down UK interest rate rises, Mr Carney has not done the Pound any recent favours. He is followed at 1.15pm by ECB President Mario Draghi who will be discussing the Eurozone, with David Cameron in the background laying the foundations for the debate over British membership of the EU. With speculation of a 2016 in-out referendum gathering pace, the Pound is surely in for a rollercoaster ride next year as we move towards one of the biggest political and economic decisions in a generation.

For now though, the Pound is looking very good value against the single currency, and while rates have dropped in recent weeks against the US Dollar and pegged currencies such as the UAE Dirham, this decline may well be set to continue with the USA now odds-on favourite to be the first major economy to raise interest rates post-2008 crisis.