Interest Rate Announcements Dominate the Market Outlook
With both the European Central Bank (ECB) and the Bank of England (BoE) making their latest interest rate announcements today it is likely to be a very busy day in the currency markets with the possibility of a lot of movement in the markets. The BoE are expected to keep interest rates on hold for the time being as the UK economy continues to strengthen which is good news for Sterling exchange rates, however, it the announcement from the ECB will be more closely monitored. Recently the ECB have cut interest rates to a new record low in the single currency economy and yet they are still heading towards deflation which could cause major issues for the Eurozone and therefore the Euro. Due to the fact that most of Europe is on holiday during the month of August it is rare for the central bank to act but with the pressure they are under we cannot rule it out. It may more likely though that Mario Draghi, head of the ECB will use the accompanying statement and question and answer session to make some strong comments in order to give the markets some notice about further policy changes in the coming months and this could have just as big an impact on GBP EUR than any actual action. So, if you need to buy or sell Euros today could be a key day and therefore well worth staying in contact with your currency broker here at Foreign Currency Direct plc who will be happy to discuss the market outlook in more detail plus the options available to you.
The announcements are at midday for the Bank of England and 12:45 BST for the European Central Bank so if you are looking to trade it will be worth speaking with us before this time.
You can call straight through to our trading floor for free on 0800 328 5884 or if calling from abroad 0044 1494 725353 alternatively you can email me directly on firstname.lastname@example.org