Quiet today, but busy week for the Pound

Today we don’t have any major data due out likely to affect exchange rates, so perhaps we might see a continuation of last week’s themes of US Dollar weakness and Euro strength (giving better rates for buying US Dollars and worse rates for buying Euros), given the Federal Reserve’s decision last week to inject more money into the ailing US economy.

The US Dollar is currently selling at its cheapest rate since April, while conversely the strengthening Euro, aided by Germany’s approval of the Greek bailout last week, has seen rates for sending Euro transfers drop by 5c since July’s high.

Later this week we also have some important data for the Pound, with inflation (Tue), Bank of England minutes (Wed), retail sales (Thu) and public sector borrowing (Fri). With inflation dropping in recent weeks, the Pound is vulnerable to drop further on tomorrow’s figures, and there is a risk to sterling throughout the week with the economic recovery currently in such a fragile state.

Elsewhere for those of you sending money to Japan, the Yen is at its cheapest level since April, and last week also saw the Pound at its highest level since 2009 against the South African Rand.

Whichever currency you are buying or selling, contact us at Currency Index for our opinions on the markets and a free quote for your transfer.