Currency Exchange Rate Forecast – GBP

This week there is a lot of economic data due for release which could have a further big impact on Sterling exchange rates. Last week we saw the Pound plummet following some comments from Governor of the Bank of England, Mark Carney, and also a worrying sign that the price of goods and services are rising while wages are not rising in line with this which could really hamper spending and therefore the amount of money that is moving through the economy. This week some of the key data sets due for release are inflation data in the form of Consumer Price Index, the latest set of Bank of England minutes and Retail Sales. All of this data is important for gaining a good understanding of how the UK economy is performing and therefore for Sterling exchange rates, so for any clients that are looking to make an international currency transfer it will be very important to stay in close contact with your currency broker here at Foreign Currency Direct plc. Our currency brokers will be able to keep you informed of all the latest news in the currency market and will also be happy to discuss the all the options available to you so you can make an informed decision about when to transfer the funds. You can call straight through to our trading floor to speak with one of our team for free on 0800 328 5884 or if calling from abroad 0044 1494 725353 alternatively you can email me directly at trh@currencies.co.uk

USD Exchange Rate Outlook

There are also a lot of economic data sets due out this week from America which could cause a lot of volatility for the US Dollar. This starts with the key inflation data which will show how quickly the price of goods and services are rising are in the world’s largest economy, the hope for the States is that inflation remains steady at around the 2% level, following this, on Wednesday, we have the latest set of minutes from the Federal Market Open Committee (similar to the Bank of England’s Monetary Policy Committee who are responsible for interest rate changes) and the focus on this will be on the end of their bond buying scheme which is expected to be in October.  On Thursday retail sales figures, housing data and unemployment numbers are all reeased in what is likely to be a busy day for the USD, positive data here will help Dollar exchange rates and could result in the current GBP USD trend which has seen the Pound fall from up around the 1.70 levels back down to the current levels.

For more information about our services and the market outlook please do not hesitate to contact me on 0800 328 5884 as we will be more than happy to assist.