Sleepy day for the currency markets, awaiting the GDP rocket to take off

This week has been relatively quiet in the way of data releases, particularly given recent weeks – as such the market has remained relatively stagnant, and at least for the short term much of the volatility in the majors seems to have subsided. The pound this week has remained stable against its 2 major counterparts – the U.S Dollar and Euro – staying relatively range bound and tight, which is for many a welcomed break to movements we have seen recently. However this moment of calm is likely to be short lived as we move into tomorrow and see some important data releases which could see rates move swiftly. In the UK we have mortgage data out, but more importantly we will see a head-to-head against the pound and Euro as UK GDP data will be released along with German GDP and also Import data. With France marked as being out of recession and rumours that the Eurozone is to follow shortly, will a positive German GDP figure give another nudge to creep nearer towards it? A positive figure announced we could see a strengthening of the Euro and the recent gains made by the pound eroded, and undoubtedly if this is met with poor UK figures this erosion could be rapid. For anyone buying euros you would be well advised to keep in close touch with your Currency Index broker to avoid any disappointment -at present we are 0.5 of a cent of a 2 month high, but there is an underlying fear we could see rates drop back down to the levels seen back in February before the Cypriot banking failure. Elsewhere in the world anyone buying Australian Dollars, South African Rand or Indian Rupees are well positioned as we find AUD rates at a near 3 year, ZAR at a 4 year high, and INR at a 10 year high. If you have any upcoming currency transfers to make speak to your Currency Index broker asap- we can help you stay well informed and well ahead of the market.