We have a potentially very volatile and extremely busy day for Sterling exchange rates against all major currencies today, following a little bit of a drop off from the great buying levels we were witnessing just a few weeks ago.
There hasn’t really been too much in the way of negative data for the U.K but it just seems like the Pound has fallen out of fashion again in the last few weeks and today may either kick Sterling back in the right direction or may lead to further losses.
We have both the Bank of England minutes and U.K unemployment figures out at 09:30am which are both extremely important. The minutes will be from the last interest rate decision and will show us exactly what was discussed and will also show how members of the Bank of England voted in terms of interest rate change.
Unemployment figures are also one of the key factors that will affect as and when interest rates do start to rise again and last month we saw that unemployment had got a little worse again which led to a slight drop in value for the Pound. Mark Carney has previously mentioned that unemployment levels will need to drop to 7% or below as part of his consideration for interest rate change, so any alteration to the 7.2% recorded last time will no doubt affect the Pound.
Later on at lunchtime we have the budget announced. This can be a little hit and miss regarding whether it has too much of an impact on the currency markets. It is however well worth keeping an eye on the value of the Pound throughout this as you never quite know just how any announcements may be taken by investors and speculators alike and what impact it may have on Sterling exchange rates. Click here to follow live up to date interbank exchange rates.
With exchange rates moving every two seconds if you are looking to buy or sell foreign currency in the coming days, weeks or months then it is imperative you have a currency broker on your side being your eyes and ears on the market. If you are looking to exchange in the near future then it would be prudent to contact me today so that I can keep you up to date with any significant market movements. You can call on 0800 328 5884 or email me directly on firstname.lastname@example.org and I will be happy to help you.
Tonight we also have big news from America which may affect all major currencies as we see the release of the Federal Reserve interest rate decision. This will give us an indication of if there are any more plans for tapering of QE over in America and if there are strong indications there are then the Dollar may strengthen and if we see the opposite then we could see Dollar weakness once again.
Keep a keen eye on the markets at around 18:00pm today to see the results. Due to the fact this that we will be seeing the markets react just outside of trading hours it may be prudent to place a limit order or stop loss contract to take advantage of any spikes in your favour or to combat any adverse movements against you overnight.
Click here to see how these contract types work or call us today on 01494 725353 to get a full explanation by one of our experienced brokers over the phone.
Tonight will also be key for anyone looking to buy or sell New Zealand Dollars as we have a final revision of Gross Domestic Product figures due out for New Zealand which will show how much the economy has grown or indeed shrunk in the last quarter of 2014. Expectations are for growth to have been revised down a little which could weaken the New Zealand Dollar a little overnight after what has been a solid start to the day for the NZD.
And finally a bit of lighter news, it is expected today that during the budget a new Pound coin is to be unveiled which is due to be the hardest in the world to fake. It will be like the threepenny bit and will have 12 sides to it. Just to let our regular readers know there will be something a little different in their wallets from 2017 onwards, and lets hope that it is much stronger by then.
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