FCD Currency World Cup
This week in the FIFA world cup we move into the final group games with two matches kicking off at one time and so today in the FCD Currency World Cup we will be analysing the currencies from the dead rubber match in Group B as Australia take on Spain, meaning we will be assessing the Australian Dollar and the Euro.
Australian Dollar (AUD)
This week is quiet for the Australian economy with very little economic data due for release however Sterling is still strong against the Dollar holding just over the 1.80 level at the time of writing. With the Reserve Bank of Australia (RBA) recently stating that they were concerned about the strength of the Austrailan Dollar there has been a lot of volatility for the currency but while the prices remain over the 1.80 level it remains a good opportunity to buy AUD. So, one of the key drivers for the Australian Dollar will be any comments from the RBA which could be unexpected and therefore lead to spikes in the market, so if you need to buy or sell Australian Dollars it is important to inform your account manager here at Foreign Currency Direct plc of your currency requirements so they can keep you informed of all the latest currency movement.
Spain – Euro (EUR)
This week is also very quiet for the Euro with very little economic data due out for release, the main focus for Sterling Euro exchange rates will be the UK Gross Domestic Product (GDP) figures on Friday and before that the UK inflation figures on Tuesday and a speach on the financial stability of the UK on Thursday all of which could lead to a lot of volatility for GBP EUR exchange rates. In the meantime the markets will await the next round of Eurozone economic data which will start again next week as we enter into a new month. The European Central Bank (ECB) interest rate announcement will be crucial following their comments from earlier this month where they stated that they will do whatever it takes to stabilise their economy and that even though they cut interest rates to a new record low they would act again if it was deemed necessary. While it is expected that they will give the recent interest rate cut chance to take effect on the market there is still an outside chance of another surprise announcement from the ECB.
Comapring the two currencies the Euro is just the stronger of the two despite the economic issues they are facing but with Spain’s recent form in the FIFA world cup it is clear that there is no guaranteed result, just like there is no guarantee as to what will happen next in the currency markets!
If you need to make an international currency transfer make sure you speak with one of our helpful currency brokers who will be happy to discuss your currency requirements and the options available to you by calling straight through to our trading floor for free on 0800 328 5884 or if calling from abroad on 0044 1494 725353 alternatively you can email me on firstname.lastname@example.org