Focus shifts to USA and Europe
29 August, 2012
Today sees a complete absence of any local data releases, with the focus very much shifting across the channel and also the Atlantic. In the Eurozone we have German CPI Inflation figures, with expectations of a slight rise on the annual rate, and then in the US we have GDP figures and the release of the Federal Reserve’s Beige book. US GDP is expected to drop quite significantly and the Beige book, which is essentially a economic survey compiled from the 12 Federal districts, is expected to be very revealing as to the current economic position in the US.
It seems likely that we could find ourselves in a situation where we have a strengthening Euro – rising inflation, while bad for an economy, generally strengthens the local currency – and a weakening Dollar – stuttering GDP is almost always negative – and with this compounded by the ever present currency seesaw (weakening Euro or Dollar, sees the opposite in the other), expect a very volatile few days ahead. If you are buying Euros it is definitely worth contacting your CI account manager to discuss your options in case the recent high rates are lost as the Euro gains strength.
The end of the week sees the focus remain very much in the US with the annual Jackson Hole summit, where we will hear from both the Federal Reserve Chairman Ben Bernanke and also the head of the IMF Christine Lagarde. With much turbulence in the US and also the worldwide economy, expect some pretty direct comments and insight into what two of the world’s most powerful economic gurus thinks.
The end of this week also sees the football transfer window slam shut. For all those Premiership footballers and managers out there, if you would like to know how best to deal with the currency transfers of those ludicrous transfer fees and lucrative signing on bonuses, then don’t assume your bank are the best bet and instead get in touch with Currency Index for a professional’s view.
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