This report will examine the factors that could affect exchange rates this week in order to help you stay informed if you need to make a currency transfer. The table below shows the difference you would have received when buying £200,000 at the high compared to the low during the past week.
|Currency Pair||% Change||Difference on £200,000|
During yesterday’s trading session the Euro saw its biggest upward spike in more than 2-months on a trade weighted basis, after Germany, the engine room of the Eurozone posted some better than expected GDP figures.
My colleague Lewis Edmonds brought this along with the ZEW economic sentiment survey to our clients' attention yesterday during his market report, which just goes to show the importance of being on top of economic data releases as clients able to take advantage of the spikes would have been trading at almost a 1-month high when converting Euros back into Pounds.
Germany is now on track for a 3% annualised GDP figure which is Euro positive, but I think that those holding Euros and waiting for the right time to make a transfer should also consider how a number of underlying issues may scupper the Euros good position, with the heavily publicised Catalonian independence issue being one of the main issues along with stubbornly low inflation levels within the Eurozone.
Economic data out of the Eurozone is relatively thin for the rest of the week, although I do think Thursday’s inflation data for the region, which is released at 10am could impact markets especially if the figure deviates substantially from the 0.9% figure expected.
Mario Draghi will be speaking early on Friday morning and markets tend to follow his words closely in case he alludes to future monetary policy, and being the President of the European Central Bank you can understand why so feel free to let us know if you wish to be updated to any major moves for Euro exchange rates.
Aside from these data releases I would also like to make clients holding Euros aware that JP Morgan is expecting to see the Pound climb in 2018, and yesterday re-iterated their Long stance on the Pound which in essence means they think it will climb in future.
For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.
My experience with Foreign Currency Direct has been excellent, and my account Manager Joseph Wright has been First Class. He has provided me with all the information that I needed, in a very clear way, that made it easy to understand.
Successful transfer to France. I have used Foreign Currency Direct several times. Nothing is too much trouble to explain, and when it comes to the actual transfer, it takes place on time without fuss. Never had a problem. Thank you Joseph!
Very efficient and responsive. We had great service from Joe Wright who helped us (patiently and with humour) through our currency purchase and was then able to guide us through the process of sending money to France for our property purchase.
Joseph treated us very professionally as well as friendly, and advised and went beyond his duty. Would recommend and use him again.