Greek banks are finally open busy week ahead on the currency markets

With the third Greek bailout agreed but still in the pipeline in terms of getting the details nailed down and and getting the final authorisations, the Euro starts this week where it left of last week – completely on the back foot. Both the US Dollar and Sterling are hitting new highs against the single currency, with both of the Euros major competitors talking interest rate hikes in the coming months this is no great surprise. When the final details are agreed for this latest Greek bailout we would expect that the Euro will make back some ground, but in the mean time there is a great opportunity for those of you who need to buy Euros in the coming days.

While much of the market’s focus this week will be on the continuing negotiations over the terms of the bailout, there is quite a bit of data due too:

Monday
UK house price data
UK public sector net borrowing
European current account
German PPI

Tuesday
Australian RBA policy meeting minutes

Wednesday
Australian CPI inflation
UK BoE policy meeting minutes
UK Inflation hearings
US Markit services PMI
New Zealand monthly policy statement and interest rate decision

Thursday
UK retails sales
UK mortgage approvals

Friday
European Markit services PMI
European Markit manufacturing PMI
US Markit manufacturing PMI
US new home sales

So a busy week, with plenty that is likely to move the market. The high light will probably be the Bank of England minutes on Wednesday when we will find out if any MPC members are starting to vote in favour of interest rate hikes. Mark Carney says they are likely at the turn of the year, but any indication of this being sooner or later could impact the Pound’s current position.

As ever make sure you stay in close contact with your CI account manager to be kept informed of exactly what is happening and what impact that is likely to have on your upcoming currency purchase.