Unhappy new year for the Pound

It only seems like a few days ago that we were enjoying the Christmas break, but already we are in the first full week of January and with a busy start to the year for economic data. Sterling starts 2016 very much on the slide, having fallen to its lowest level since October against the Euro and since April against the US Dollar, so with momentum currently against those of you sending money abroad in the coming weeks, it may be a good idea to consider locking into an exchange rate sooner rather than later. While there is a full economic calendar this week, with data every day to potentially affect rates, unless we have some very unexpected good news for the UK economy, it seems unlikely that much (if any) of the Pound’s recent slide will be reversed in the short term.

Most of the important data for the week comes from the USA, where we have manufacturing (today), trade balance (Wednesday) and the main monthly unemployment figures, non-farm payrolls (Friday). With the US having recently been the first major economy to raise interest rates since the global financial crisis, it will be interesting to see whether more positive data sends the US Dollar even higher in price this week.

For the Euro, inflation figures tomorrow (preceded by Germany’s today) are important, with any reading above 0.3% for the year to December also likely to make the Euro more expensive.

Today however the only UK news due out is mortgage approval figures this morning, which is unlikely to have a huge bearing on the Pound.

Monday
UK mortgage approvals (9.30)
German inflation (13.00)
US manufacturing (15.00)

Tuesday
UK construction (9.30)
Eurozone inflation (10.00)

Wednesday
German unemployment (8.55)
US trade balance (13.30)
Federal Reserve minutes (19.00)

Thursday
Swiss unemployment (6.45)
Eurozone unemployment (10.00)

Friday
German trade balance (7.00)
Swiss inflation (8.15)
US non-farm payrolls (13.30)
Canadian unemployment (13.30)

With exchange rates currently in a precarious position, whatever your requirements for sending or receiving payments in foreign currencies, speak to the friendly team at Currency Index for the latest live quotes and different options for your currency transactions.