Unsettled markets swing EUR USD

19 November, 2013

Rob Bastin

After a busy time last week for the Pound that saw 2 cent swings against the Euro and the US Dollar, this week look to be a little more settled with an absence of any key data releases. This morning did see a couple of small releases with Rightmove confirming a further increase in house prices from this time last year, but a 2.4% drop from last month. As trading began across Europe the Euro-zone released its latest Trade Balance figures which posted a better than expected trade surplus of €13.1B up from €6.9B last month. This data boosted the Euro slightly against both the pound and the US Dollar as the day developed. Whilst an absence of data may provide some more stability in the market this week, this is not necessarily a positive thing for where sterling exchange rates could be by week end. On Friday the pound was 0.5% off its year highs against the likes of the Euro and the US Dollar, and without further data to support the Pound traders find themselves reluctant to buy the pound any further near to these peaks, and instead we have seen the week start with sterling selling which could very well continue over the coming days. If you do have an immediate currency requirement then get in touch with your broker today to discuss ways of fixing your rate whilst these better levels are still available. The only real data releases to note today are for the Euro-zone as below and will likely be the main driver of GBP/EUR rates today, particularly if figures a good as expected: 10:00am – Euro-zone Construction output 10:00am – German ZEW Economic Sentiment Surevy