GDP and Retail Sales aiming at packing a punch on the markets

It has been a strange few weeks for the Pound with all that has been going on particularly in Europe and the US. Last weeks shock news that the Eurozone reduced interest rates by 0.25% saw the pound gain nearly a cent and a half in a single days trading, against what had been a US bolstered Euro given the ongoing debt crisis. This interest rate cut along with some positive GDP and oil data from the US seemingly turned the tables on the GBP/EUR cross and we saw the pound make welcome gains rising to almost the highest trading levels we have seen in 2013. However this week we have seen rates with the Euro begin to slip again, and against the Euro the pound has lost almost a cent since last weeks ECB announcement. Poor CPI data from the UK on Monday saw almost a ¾ cent drop in the days trading and the previous gains the pound had made against the Euro have now almost been eroded. This morning we are due the BoE inflation report and also UK unemployment figures which are due to show a reduced claimant count – positive for the UK and as such the market has seemingly already priced part of this in with a 1/3rd cent increase in rates this morning. However be careful as any deviation from the expectation could see rates move quickly. Furthermore with German and Eurozone GDP, UK retail sales and also US unemployment figures out tomorrow no doubt we will see a busy end to the week, particularly given the extra influence the US is having at present. Certainly it would seem for the GBP/EUR in the short term much of the dust from last weeks ECB announcement on interest rates has settled, and perhaps only in the very short term can any truly positive US data help the pound fight against the Euro. With the US debt crisis likely to go on until Spring 2014 no doubt the continuing dwindling of confidence by investors in the US market will only help give strength to the Euro, giving the pound a fairly steep hill to climb in order to make gains. One must also question how much gas is left in the tank” in regard to the pound given much of the recent positive news, so therefore what gains may be possible? Any of you that have a Euro requirement in the near future or those who are buying a property would be well advised to speak to your Currency Index broker asap for some friendly and professional information. You may like to consider booking a forward contract which can help remove of the markets and cost from your property purchase. Currency Index can help you stay well informed and well ahead of the market