Interest Rate Decisions Could be Key For Sterling Euro Exchange Rates
Today we will hear the latest interest rate decisions for both the UK and the Eurozone. The Bank of England (BoE) will announce their latest decision first at midday and the European Central Bank (ECB) will make their announcement 45 minutes later. It is expected that both central banks will keep interest rates on hold as they have done for some time now but the interesting news will, as has often been the case, come from the statement following the announcement. The markets will be looking at both banks to see whether they will mention or even introduce further monetary easing in the form of Quantitative Easing (QE). In the past the mere mention of QE has led to Sterling weakness against most the major currencies and so today’s announcement could be important for any clients looking to send money abroad. To hear the latest news from the BoE and the ECB stay in touch with your account manager here at Foreign Currency Direct plc.
UK GDP Estimate
Following the two interest rate decisions today we are due to hear from the National Institute for Economic and Social Research (NIESR) who will announce their latest Gross Domestic Product (GDP) estimate for the first quarter of this year. This is key as it will give an indication as to whether we are heading towards a triple dip recession. The last quarter of 2012 showed that the UK economy shrank at a rate of -0.3% and so if the predictions today are negative it will suggest that we are heading back into official recession. I personally think that the currency markets have priced in the chance of the country being in recession but that further confirmation may lead to some short term volatility in the currency market. However, should we see a positive figure today in the estimate then we may see Sterling strengthen therefore presenting some good opportunities for those clients looking to send money abroad.
US Employment and The Effect on US Dollar Exchange Rates
Today at 13:30 we have US jobless claims announced which will give an insight into how the US job market is performing, the prediction is for the figure to be high but better than last month which could provide some much needed good news for the US economy and therefore the USD. America still face big economic challenges which include a high level of unemployment but recent figures have shown the job market is improving and so positive figures today could not only help the Dollar but could provide more confidence to global economy and as that confidence increases we could see more funds flow into the so called riskier currencies. With America such a powerful economy news, whether it is positive or negative can have wide ranging impact with the EUR and GBP often feeling the side effects. So, if you have a currency requirement no matter which currency pair you are trading make sure you keep in touch with your currency broker today to hear all the latest news.
If you need to send funds abroad and are looking for the highly competitive exchange rates make sure you speak to one of our experienced currency brokers here at Foreign Currency Direct plc by calling us on 01494 725353 or email me directly on email@example.com.