Stakes Increase Amidst No Data and Article 50 Looms

20 February, 2017

Matthew Boyle

Last week was a particularly busy one in the way of data releases, and as a result, there was no shortage of movement in exchange rates. GBP>EUR rate remained volatile after UK inflation figures came in poorer than expected on Tuesday and throughout the week the pound lost some ground. By the end of the week’s trading, it closed around 1.5 cents down against the Euro. Midweek we saw the USD strengthen slightly following FED comments suggesting further and gradual interest rate hikes for this year, gaining around half a cent against a pound through the week. However, the greenback against the single currency, while it did trade up and down closed almost exactly where it opened the week on.

Readers take note – This week is much quieter in the way of major data, with the only real release of note being UK GDP on Wednesday. With GBP>EUR rates dropping off from the highest we saw this year only last week, and with little more data out now until the 27th February, and that date being very close to March 9th and Article 50, could we see the pound start to fall? Certainly, there is a concern ahead of Article 50 and indeed what the start or Brexit will bring, and uncertainty typically makes markets volatile and put rates at risk. So if you have been holding out to make you transfer you may like to consider this as if rates do drop, as a result, the road to Brexit proper, the road to a recovery in rates could be a long one!

Equally what must be observed is that recent Brexit announcements have to some extent pushed Pound strength. So while there is concern over the rate dropping, could we, in fact, see a rally? Certainly, the stakes are heating up. The bigger question is of course whether you are buying or selling the Pound is the risk involved which in current market conditions seems to be increasing by the day.

So don’t let yourself be caught out in a costly movement in the rate and give your Currency Index broker a call today for some friendly and professional guidance on your transfer – we can help you stay well informed and well ahead of the market.

07.00 EUR German PPI
15.00 EUR Consumer Confidence

00.30 AUD RBA meeting minutes
09.00 EUR Markit Services and PMI
09.30 GBP Public services net borrowing
14.45 USD Markit Services & PMI
21.30 AUD RBA Governor Lowe Speech

09.00 EUR IFO expectations & assessment
09.00 GBP GDP
10.00 EUR Inflation data
13.30 CAD Retails Sales
19.00 USD FOMC minutes

07.00 EUR German GDP
13.30 USD Jobless claims

13.30 CAD Inflation data
15.00 USD New Home sales