Quiet week ahead for currency markets

Last week saw critical comments from ECB president Mario Draghi providing the big news and big moves on the market. Mr Draghi spoke specifically about the Euro being too strong and measures being taken to alleviate this and as a result the single currency weakened significantly.

The weakness of the Euro also allowed a little space for the Dollar to make some gains, as investors moved their positions around the majors.

This week is a very quiet week on the markets with virtually no data of any note out today, Tuesday or Friday. Wednesday and Thursday have a few releases of note with UK unemployment figures and the Bank of England’s quarterly inflation report on Wednesday and European and US CPI inflation and European GDP due on Thursday.

UK unemployment is always an important one for the Pound and investors will be watching the inflation report for any clues from the Bank of England with regard to interest rate hikes later in the year. It will also be very interesting to see how the European figures come out in light of Draghi’s comments last week – inflation was highlighted as one of the key areas of concern, so anything unexpected there could provoke serious moves.

With rates performing close to recent highs for Sterling sellers, it could well be a good time to consider locking your rate in ahead of some of this potentially important data… Why not ask your CI account manage about forward contracts and how they could help secure the rate for your upcoming requirement?