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. For current live exchange rates click here.

UK Gross Domestic Product

This morning at 9:30am we have the revised Gross Domestic Product (GDP) for the UK due for release. GDP is seen as critical to the currency markets as any increase shows the economy is growing, moving further away from the threat of recession and as a result can strengthen Sterling while any drop in GDP can cause Sterling weakness.

This morning’s figure is a revision of the third quarter of this year which currently stands at 0.8%. While the consensus is for the figure to remain the same, any deviation could result in Sterling volatility. With all the recent positive economic data for the UK I would not be surprised to see the UK’s GDP figure continue to improve into and through 2014 and there is an outside chance we may see a small revision up today. So, if you need to make an imminent transfer make sure you keep in touch with your account manager here at Foreign Currency Direct plc so they can keep you informed of this morning’s news. Be prepared to act fast though as any potential spikes in the exchange rates could well be short lived!

US Dollar News

Figures released in America yesterday showed that consumers’ confidence in the US economy had fallen. At the same time it also showed that the US housing market had slowed both of which caused some USD weakness. The fall in consumer confidence and the slowdown in the housing market have been attributed to the recent government shut down which is clearly still having a detrimental effect on the US economy.

Today in America we have mortgage approval figures, unemployment data and manufacturing figures in the form of durable goods orders. Further negative news today could push Cable rates even higher so if you need to buy USD speak to us today on 01494 725353.

Euro Exchange Rates

Sterling Euro exchange rates have continued to remain reasonably steady of late seemingly having found their trading parameters close to a ten month high. Tomorrow we have two key economic data releases with German unemployment and consumer confidence figures set for release. These figures are then followed by Eurozone inflation data announced on Friday. Inflation in Europe has been making headline news recently with the European Central Bank (ECB) cutting interest rates due to an outlook of low inflation for the single currency economy. There were even comments yesterday from ECB member Christian Noyer who warned that interest rates could be reduced even further to try and avoid deflation. So, should inflation figures on Friday come out lower than expectation we could witness more Euro weakness. This could even mean we see Sterling push up against the Euro presenting some excellent opportunities to buy Euros, maybe even testing the so far elusive 1.20 level.

CHF Outlook

This Thursday we see the GDP figure for Switzerland released which could have a big impact on the Swiss Franc. Switzerland’s GDP is currently running at 0.5% but predictions are for their GDP to fall. If this is the case we could see some good opportunities for clients looking to buy CHF.

If you would need to transfer funds internationally and would like to discuss the options available to you call us today on 0800 328 5884 or email trh@currencies.co.uk

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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.