Figures released last night from the Royal Institute of Chartered Surveyors has shown that UK housing market has declined from last month and was worse than expected which is further bad news for the UK economy. With so much money in the UK tied up in houses a strong housing market is vital for both an improvement in the fortunes of the UK economy but also for Sterling exchange rates. Should we continue to see house prices weaken away then it is hard to envisage Sterling and the UK making any real positive movement out of the current mire we are in.
In other news, today at 10am we have the 10 year bond auction which will give an insight into how investors view the longer term outlook of the UK economy. Should we see a high level of up take on these bonds then it will show some optimism and could result in some positive movement in Sterling exchange rates, however if there is a lack of take up then we could see Sterling weakness.
In Europe we have the German ZEW survey which gives us an insight into the economic sentiment of Germany, Europes most powerful economy. This is an important survey for the Euro and with predictions for the data release showing that the figure will be better than last month but still very negative there is a concern that should the actual figures come out worse than expected we could see some Euro weakness. With Europe relying heavily on Germany any negative figures for this economy can really hurt Euro exchange rates. This could mean that with key economic data releases for both Europe and the UK we could see some movement on Sterling Euro exchange rates so if you need to send money abroad make sure you speak to one of our experienced currency brokers who will be happy to discuss your currency requirements and the options available to you. You can call straight through to our trading floor for free on 0800 328 5884 or email me on firstname.lastname@example.org