Currency Market Outlook
This week in the currency markets it is a relatively quiet week for economic data. The major economic figures start on Tuesday with inflation figures for the UK in the form of Consumer Price Index (CPI) figures and Retail Price Index (RPI), these figures are very important as currently the Bank of England (BoE) is trying to maintain UK inflation at around the 2% target level. Inflation is currently running at 2.1% and it is thanks to this some of the pressure has been taken off the BoE so they will be hoping that the figures hold steady at this level as the economy continues to get back on track. Should we see inflation rise too high there may be calls for an interest rate hike this year which could produce some Sterling strength so Tuesday morning will be very interesting. On the same morning we have house price data and producer price index figures for the UK and industrial production figures for Europe and on Tuesday evening we have a raft of US economic data with export figures, retail sales figures and speeches from two members of the FED, all of which could cause USD volatility.
On Wednesday we have mortgage figures and more production data for the US while on Thursday focus shifts momentarily to Australia and the AUD with their unemployment figures due. The European Central Bank (ECB) monthly report and the Eurozone consumer price index figures on Thursday will also be critical for any clients with a EUR transaction while the USD will be busy again on Thursday afternoon with jobless figures, housing data and inflation data all due for release. Finally on Friday possibly the most important data release for the UK is announced in the form of Retail Sales. Following the Christmas period there is an expectation that we will see positive retail figures however the numbers coming from some of the larger stores including Tesco and M&S have not been as good as expected and so may provide an unecessary surprise.
So, if you need to make an international currency transfer and would like to discuss your currency requirements, the market outlook and the options available to you please do not hesitae to contact us here at Foreign Currency Direct plc as we will be happy to help. You can call us for free on 0800 328 5884 or if calling from abroad call us on 0044 1494 725353 alternatively you can email me directly on firstname.lastname@example.org