Gains for GBP see best Euro and USD buying rates for 3 months

23 May, 2016

Matthew Boyle

Last week was a busy week with GBP making considerable gains across the board in what was a few days of almost a perfect storm. It was following an Ipsos Mori poll on Wednesday showing the biggest show for an “in” vote that started the swing and GBP gains. Then Wednesday evening saw the FOMC suggest that the FED are likely to raise US interest rates in June which saw the USD strengthen which then in turn helped GBP gain against EUR due to the see-saw effect we often talk about. On Thursday morning we then saw UK retail sales come in hugely over expectation – up to 4.2% from a predicted 1.9% again pushing strength to the pound. As a result of these events throughout the later part of the week GBP gained hugely and as a result we saw the best buying rates against both the single currency and greenback for around 3 months.

This week is a very quiet week for GBP data with the focus sitting largely with the US who release various ecostats all of which will likely cause movements. Many will be watching for further clues on an expected rate hike and certainly USD movements will likely also effect GBP/EUR rates.

Given the recent ups and downs we have seen and the fact we now we are exactly a month away from the referendum we are likely now to see even more increased volatility on the market, particularly with GBP and EUR rates.

So should you have any upcoming requirements stay in close contact with your Currency Index account manager who can give you some friendly and professional guidance on how to avoid the pitfalls.

08.00 EUR Markit services and PMI
13.45 USD Markit manufacturing and PMI
14.00 EUR Consumer Confidence

03.05 AUD RBA Governor Glenn Stevens Speech
09.00 EUR ZEW Economic Survey
N/A Eurogroup Meeting

N/A EUR EcoFin meeting
14.00 CAD BoC rate statement and interest rate decision

08.30 GBP GDP data
09.15 USD Feds Bullard Speech
12.30 USD Jobless claims and Durable goods orders

12.30 USD GDP data
14.30 USD Fed Yellens Speech