Sterling kicked the week off on a positive, pushing up against the Euro

Last week Sterling kicked the week off on a positive, pushing up against the Euro and US Dollars, providing a great exchange opportunity as rates sat only a cent below a two year high. The outlook of a conservative majority in the general election polls could have also been a strong influencer for Sterling as a Tory win would likely see the Prime Minister’s agreement to exit the EU with a transition period to negotiate a future relationship move forward and removes the fear of a no-deal exit, which could cause all kinds of economic uncertainty (something a currency does not thrive off). As we neared the end of the week though Sterling lost a little ground as both November’s Markit Manufacturing and Services PMI figures posted a contraction.

The week ahead:

Although it looks to be a busy week, there are very few major economic releases due, So investors will continue to watch the election campaigns play out. Anything could happen in this election, and although rates have been trading fairly flat this past week there is plenty of room for this to change. Parties have now released their manifesto’s and in the weeks to come we can expect rate volatility as debates and campaigning gear up even more as the 13th of December draws closer.

Monday:
No major date releases

Tuesday:
USD 14:00 Housing Price Index
15:00 Consumer Confidence
18:00 FED’s Brainard Speech
NZD Overnight Financial Stability Report
NZD Overnight Trade Balance.

Wednesday:
GBP N/A Inflation Report Hearings
USD 13:30 Durable Goods Orders
USD 13:30 Personal Consumption & Income
USD 13:30 GDP Annualised
USD 13:30 Jobless Claims
USD 13:30 Capital goods Orders
USD 15:00 Pending Home Sales

Thursday:
EUR 10:00 Business Claims

Friday:
EUR 10:00 Consumer Price Index
EUR 10:00 Unemployment Rate
CAD 13:30 GDP

Those with pending requirements looking to buy or sell Sterling would be wise to plan in advance. Get in touch with us here at Currency Index to be kept up to date on new developments as they happen. Our Limit stop loss orders could be a useful tool for those hopeful to achieve a little more than what the current market presents. – Speak to one our consultants for more information.