No right off for the Pound this week

24 July, 2013

Graham Harborne

So far this week we have seen very subdued markets, in fact yesterday there was more excitement about the first sighting of the future king than there was of the minimal swings that we saw in the currency markets. Trading in a 0.2% range against the majors throughout the day, buying or selling GBP was a bit of a non event. The biggest data release happened in the middle of the night with Australian CPI missing its forecast paving the way for a rate cut in August. Tough times ahead for the boys down under with their cricket team taking a bashing and their interest rates looking to follow suit. Today sees another quiet day here in the UK but with PMI data due from across Europe and the US we could well see a little volatility, especially with the euro strengthening over recent weeks this data will give us an indication as to how strong the market really feels the bloc currency is. It’s not a complete right off as far as UK data goes this week. Tomorrow sees Q2 GDP figures released and we are likely to see some action. Over the past few months there has been much talk of a UK recovery. This may well be slowly happening but with fairly optimistic figures forecast should we miss the magic numbers don’t be surprised to see the pound fall away. If you don’t want to risk getting caught out tomorrow then speak to your account manager here at Currency Index about any currency requirements you may have in the near future. To learn more about sending money abroad, click here.