It’s Oh So Quiet

Last week saw a break from the recent volatility on currency markets, with the Pound falling back slightly against most currencies but avoiding the rapidly changing rates we have been seeing in recent weeks. With Cyprus not in the headlines, and not much major data out around the world, there was more stability.

On Friday one exception saw the key monthly US labour market figures, non-farm payrolls, come in much worse than expected, with only 88,000 jobs added to the US economy instead of the 200,000 expected. This weakened the US currency and has given us improved rates for those of you sending US dollars or pegged currencies such as the UAE Dirham. The US currency is now at its cheapest level against sterling for some 6 weeks.

Eurozone retail sales were also worse than expected on Friday, keeping the Euro relatively cheap for now.

Today there is no major data due out, and the only important UK figures this week are industrial production numbers tomorrow. With the Bank of England deciding not to extend QE last week, for the Pound the next important news could be the Bank’s minutes next week, and of course the all important first reading of Q1 GDP in the last week of April. Any signs that we could still be heading for a triple dip recession before the official GDP reading, will be likely to weigh heavy on the Pound.

Overall this week could therefore be seen as a good window to secure relatively good exchange rates for your purchase. Contact us at Currency Index for the latest rates and a chat through your options.