USD shines over Pound and Euro amidst dull day

Yesterday was a dull day in the currency market with few releases of major note. A few German business sentiment Ecostats in the morning came in worse than were expected. Although this did little to GBP/EUR rates, which remained flat through the day and closed close to where they opened the day’s trading. It was the USD that shone as it posted a hugely better than expected figure in the Dallas Fed business sentiment index, when a contraction was predicted. Posting an actual figure of 21.3 up from a predicted 11.5 and previous 17, this allowed the Dollar to gain ground throughout the day. By the end of the day’s trading it had gained almost a cent against the Pound and Euro, which was suffering from its earlier poor German results.

Today’s data releases for Dollar, Pound and Euro

Today is a busier day in the way of Ecostats, kicking off with some low-level German, Italian and French releases early morning. This is closely followed with UK BBA mortgage data due at 09.30, with a speech by European Central Bank member Praet speech at 13.00. In the afternoon the focus shifts to the US who post several key releases. We have two speeches from FOMC members, a raft of Housing data and Fed Chair Janet Yellen speaking at 17.45. With the US Dollar dominating the releases, will we see another day of gains for the greenback against the Pound and Euro?

For the Pound and Euro, now the German election is out of the way it seems Brexit negotiations are taking central stage again (at least until the question of interest rate hikes rears its head again). And with the UK being warned that we are now 6 months into negotiations with no plan, will we see the Pound tumble again, particularly after the 5% gains we have seen over the last fortnight? With profit taking always a risk of the Euro being sold back down, many of you might like to consider the recent upturn and think about cashing in before it may be too late. As the adage goes “what goes up must come down”.

Those of you with upcoming requirements should to get in touch with your Currency Index sooner rather than later to avoid being caught out with a rate drop, which could cause a costly increase to your purchase. Currency Index offers a number of ways in which you can order you currency to help try to get you the most, and one of or friendly brokers is always available to watch the rate for you and let you know if any changes. So give us a call today and let us help you get the most out of your currency exchange when sending money overseas.