Quiet start to the week calm before the storm

The week began yesterday and in fact continues today with very little significant data to interest the markets and as a result there has been very little movement of note to trouble currency buyers. We saw very range-bound movements of half a cent here or there for all of the big three – Sterling, Euro and US Dollar – yesterday, with the markets taking a breather and settling back to sentiment and trend movements with nothing much else going on.

The slight winner yesterday was the US Dollar which managed to take a little strength after a couple of Federal Reserve members made comments which implied that interest rate hikes might not be over for this year, with another one still possible within 2016. Higher interest rates mean more investment, which in turn means a stronger currency and as a result the Dollar made some modest gains.

We have already seen some of today’s more important data come out in the form of various German economic numbers – it was a bit of a mixed bag and as a result has had very little impact. Later on we have UK trade balance numbers, some industrial production numbers from around Europe and a couple of US bond auctions later today. So very little for the currency markets to get their teeth into and as a result we could see another fairly quiet day ahead.

There is a significant amount of data out over the rest of the week and so this could well be the quiet before the storm, with central bank announcements, unemployment figures and GDP announcements from many of the major economies. As a result now could well be a good time to look at securing your rate while we still have good solid levels for buying both Euros and Dollars, ahead of what is likely to be a fraught and volatile couple of days.

Make sure to stay in close contact with your Currency Index account manager to be kept informed of what is happening and what your options are for your upcoming currency purchase.