Improvement’s set the benchmark for coming week

29 July, 2013

Simon Eastman

Last week was a fairly subdued time for the pound, as we saw trading in a tight range for most of the week. The lack of data had a part to play and it wasn’t until Thursday when the second revision for Q2 GDP came out that we had any movement. There was some expectations of an improvement to the figure with a reading of 0.6% expected. It seemed that traders were moving on this information in the days up to the release as despite the lack of data, the pound was fairly buoyant. Come Thursday, the figure came out, as expected, and the pound went into free fall. It seems the markets had over priced n the reading and we saw a drastic correction as the pound spent the rest of the day declining in value across the board. As the month draws to a close, we have a few data releases which could have an effect on the markets as shown below: Monday – UK mortgage data Tuesday – German GDP and inflation figure. EU consumer confidence data. UK consumer confidence Wednesday – German unemployment and EU inflation data. Canadian and US GDP. FED interest rate decision Thursday – BoE and ECB interest rate decisions. US PMI figures Friday – US Non-farm payrolls and employment data With the cross over to August mid week we have the start of the data flow for next month kicking off with some key releases. If you have a currency requirement coming up it might be worth looking to get it arranged before to avoid what could be a volatile start to the month. Call one of the brokers here at Currency Index today to discuss your options for sending money abroad, click here.