Currency Exchange Rate Forecast
Today sees bank holidays in Canada, France and America but for the remainder of the week there is plenty of economic data due to keep the currency markets busy. On Tuesday we have UK house price figures which is always a key indicator towards the overall health of the UK economy as so many Brits have funds tied up in bricks and mortar and so strong house price figures often means good news for the Pound. Also on Tuesday we have UK Consumer Price Index which is a key measure of inflation in the UK. We saw last week the European Central Bank (ECB) cut interest rates because their inflation was running weell off the ECB’s target levels so the figures for the UK will be keenly watched. On Wednesday we have unemployment figures for the UK followed by the Bank of England (BoE) quarterly inflation report and a speech from BoE Governor Mark Carney. Again, this could be a major market mover as Mark Carney has already provided some forward guidance for Sterling and considering the heightened importance of inflation figures Wednesday’s comments could provide a good insight into the short to medium outlook for the UK economy and therefore Sterling exchange rates. On Thursday we have UK retail sales which will show the strength or otherwise of the UK high street and then following this probably the most important economic data set of the week for the Euro in the form of Gross Domestic Product (GDP) figures. These figures will show how well the Eurozone is performing and with the recent interest rate cut and the fact that France have been downgraded could signal weaker figures and possibly even negative growth which could signal EUR weakness. Finally on Friday we have European Consumer Price Index figures and will highlight inflation which is a hot topic in Europe at the moment.
It is clear that it will be a busy week especially for Sterling and Euro exchange rates, so if you need to make a currency transfer it would be prudent to speak with one of our experienced currency brokers today who will be more than happy to discuss your currency requirements, the market outlook and the options available to you. You can call us free on 0800 328 5884 or if calling from abroad 0044 1494 725353 alternatively you can email me directly on email@example.com