Slow start to week for the Pound

Sterling has started the new month and this week with little movement to report, drifting slightly higher against the Euro after yesterday’s better-than-expected construction figures, but there will certainly be more fireworks in the sky tonight than we are seeing on the currency markets.

In the early hours this morning the Reserve Bank of Australia kept interest rates on hold, keeping rates for buying AUD stable, and aside from Eurozone producer inflation at 10am today, there is no other significant data due out unless you are sending money to New Zealand , where unemployment figures are released at 11.45pm.

In an unusually quiet start for a month, tomorrow also looks quiet on the data front, so exchange rates may be quite stable – a perfect opportunity to take stock and consider whether to look at fixing a rate now for the coming months. With UK interest rates set to stay at historic lows until unemployment drops, there is unlikely to be any new momentum for the Pound for some time, while the US debt crisis could easily cause more problems in January and the UK economy is by no means out of the woods.