FCD Currency World Cup

Yesterday four teams confirmed their places into the last 16 of the FIFA World Cup and today another four teams will secure their places. So, today for the FCD Currency World Cup we will be examining England’s last world cup game as they take on Costa Rica.

England – Sterling (GBP)

Sterling has held reasonably steady over the last few days but today we have the latest inflation figures for the UK with the Bank of England inflation hearing announced at 9:30am. Inflation has been falling both in the UK and in the Eurozone and in fact it has fallen so much in Europe it lead them to cut interest rates and with inflation dropping in the UK should we see more negative figures it could result in a drop in Sterling exchange rates so for those clients with a currency requirement todays announcement could be key. Then on Thursday we have the financial stability report from Bank of England Governor Mark Carney which could give a good insight into the country’s financial performance and the outlook for the economy, again this could be a very important data release for Sterling exchange rates. Finally and possibly the most important data set of the week for the Pound are the Gross Domestic Product (GDP) figures which are predicted to show another increase which could provide GBP with a boost at the end of the week. Currently the Pound is holding close to multi year highs against many of the major currencies and some strong data this week could push it up even higher.

Costa Rican Colon (CRC)

The Colon was named after Christopher Columbus (in Spanish it is known as Cristobal Colon) and has been in circulation since 1896 although unofficially the US Dollar is accepted in some parts of the country. The Colon was loosley pegged to the US Dollar in order to try and maintain some stability in the currency but in 2006 this peg was modified due to the weakness in the US Dollar so the currency is now free to float within a specified band linked to the Dollar. The Costa Rican economy is relatively stable and depends largely on tourism and agriculture while it also has a decent export market, however there is still roughly 25% of their population below the poverty line.

Comparing the two currencies, the rate is £1 equates to 932 CRC, it is clear Sterling is by far the strongest of the two currencies, however whether the two football teams will follow suit tonight is far from certain if we go on recent form!

If you need to make an international currency transfer and would like to discuss the market outlook in detail and the options available, you can call straight through to our trading floor for free on 0800 328 5884 or if calling from abroad you can call us on 0044 1494 725353 alternatively you can email me directly on trh@currencies.co.uk