Lest We Forget – A Week To Remember

10 November, 2014

Simon Eastman

Last week was a roller coaster for sterling as we saw some good exchange rate gains made against the majors in the early part of the week from strong data, coupled with some very weak Eurozone data underlined by Mario Draghi as he delivered his press conference last Thursday. The pound was trading at near best levels in two years again against the single currency, the complete mirror to how it traded against the US dollar, which had been surging across the board following the end of their QE program. 

On Friday, the week ended with some key data from the US and Canada, with the Loonie spiking in strength after the employment figure came out at positive 53,000 from an expected decrease of 5,000 jobs, a significant difference and massive boost to the Canadian economy. Further south, the US non-farm payrolls came out along with other employment data but wasn’t quite as impressive as its north of the border cousins. Most figures were as expected although the non-farms was slightly worse, but not to a wide enough degree to worry investors who have of late been backing the greenback. 

Sterling, which had been doing well for most of the week, found itself struggling to keep momentum as the week drew to a close and we saw it finish lower across the board with the exception of the US dollar following the disappointing jobs data.

Currency news this week

So on to the week ahead and it’s looking like it could be a tough one for sterling. We have literally no data to speak of, apart from unemployment figures mid-week and a couple of very low key ecostats which are likely to have little baring on the markets. With the world giving its thoughts, 100 years on, to the start of “The Great War”, the markets around much of the world are shut Tuesday for a day of remembrance. In the world we now live in and the hustle of the ever changing foreign exchange markets, we at Currency Index will certainly be “downing tools” to pay our respects at 11am on the 11th.

In a week where the majority of the world’s thoughts are with those who perished all those years ago, for everyone who is also in need of making international payments there is little of note to be concerned with. As far as ecostats go, the week is very quiet with only the following of real importance:

  • Tuesday – RBNZ financial stability report alongside Governor Wheeler speech
  • Wednesday – UK unemployment data, claimant count and quarterly inflation report from the Bank of England.
  • Thursday – German inflation figures and ECB monthly report.
  • Friday – German GDP, EU inflation figures and GDP, US retail sales and consumer sentiment index

So with so little to go on, worldwide public holidays and an end of the week rush of data, this could be a quieter week for anyone needing to purchase currency. If that person is you and you would like some friendly guidance, feel free to give one of the CI team a call today.