Plenty to cause market movements
22 May, 2018
A quiet start to this week with practically no major releases to note has left the markets with little to react off. GBP/EUR traded very flat yesterday, staying within the same range we have seen over the past few months. Although some may think the current levels are not great it’s worth remembering that they are only just over a cent below the best we have seen all year, so still a good time to consider locking in a rate should you have an upcoming Euro transfer to make. The Pound has managed to hold its own against the euro in recent weeks but the same cannot be said against the US Dollar. GBP/USD has now fallen to its lowest level this year, the Dollar has continued to strengthen followings news that the US and China trade war has been reported to be on hold for now. Maybe not the best news for those looking to buy Dollars but for those who have Dollars in hand and looking to repatriate them back to Sterling, now would be a good opportunity to do so.
Over the next few days, we can expect more movement in the rates as we have some key releases out for the UK. This morning at 09:30 the UK announce Public Sector Net Borrowing and at 10:00 committee members at the Bank of England release their current view for the UK’s inflation and economic outlook, ahead of the actual inflation release due at 09:30 tomorrow morning which is expected remain at 2.5%. Any change here is likely to see the rates move. Also, this morning, the Bank of England Governor Mark Carney and 3 other committee members are speaking this morning at 9:15. Any comments or hints towards policy could see a reaction in the markets.
If you have a requirement to exchange currency in the near term then you may want to consider your options ahead of the inflation release on Wednesday as any result lower than markets anticipate could be damaging for the pound. Same goes for Retail Sales data due on Thursday and GDP on Friday. Both releases are indicators for UK growth and are almost certainly likely to cause some movements in the rates if the result posts anything different to market expectations.
If you are concerned about the upcoming releases and want to secure your currency needs ahead to avoid any potential loss then give us a call today and speak to one of our friendly brokers for some guidance and explore the options we can provide you help you maximise your return.
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