Pound sees a recovery against Euro and US Dollar last week

21 March, 2016

Grace Rae

Last week the Pound ended on top, and it improved across the board thanks to the comments made at the Bank of England’s monthly policy statement on Thursday. The Bank said that although the EU referendum will likely see them retain interest rates at existing record-lows through much of this year, the next move is that interest rates are “more likely than not to rise over the coming two years”. This gave both Euro and Dollar buyers a great opportunity.

The talk of rising rates allowed for the Pound/Dollar rates to improve the most, and rose to a new month-long best, and increased just under a cent throughout the day, and Pound/Euro trading nearly 2 cents better ahead of the Bank of England’s comments.

Now, although we have experienced some decent buying rates recently, the long term outlook is that rates are to continue on a down trend. For those looking to sell sterling, its suggested you plan ahead! As we near the end of March and approach the pending EU referendum in June, the uncertainty that is surrounding it drives the market down and the closer we get to June the more likely it is that rates will not move in your favour. Spread your risk – why not consider trading half of your requirements now and the other half later?

Don’t miss a better opportunity now, and call one of our friendly team here at Currency Index to discuss our forward contracts which allows you to fix your currency for only 10% of the funds for up to a year ahead!

Next week’s main data releases to watch out for:

USD Chicago Fed National Activity Index (Feb) 12:30pm

AUD RBA’s Governor Glenn Stevens Speech 5:30am
GBP Consumer Price Index 8:30am
GBP Producer Price Index 9:30am
USD House Price Index 13:00

USD New Home Sales 14:00
CHF SNB Quarterly Bulletin 14:00
NZD Trade Balance/Exports 21:45

EUR Markit Services PMI 9:00am
EUR Markit Manufacturing PMI 9:00am
GBP Retail Sales 9:00am
EUR Targeted LTRO 10:15am
USD Initial Jobless Claims 12:30pm
USD Durable Goods Orders 12:30pm
USD Markit Manufacturing PMI 12:30pm

USD Gross Domestic Product Price Index 12:30pm
USD Personal Consumption Expenditures Prices 12:30pm