By Luke Dyson
We have seen a relatively stable and quiet week so far for Sterling against the euro.
The market is still within its current 2 cent range-bound market, flickering between the two year high and just below.
There is no economic data being released Sterling-side this week, which could potentially have rocked the boat, allowing Sterling to hold its strength and progress with the traction it’s made so far.
However on the Euro side, we have a slightly busier week, as on Friday at 10:00am we have euro zone inflation data. This measures the prices of goods and services , which in turn depending on the result be very bullish or bearish. This is due to the fact interest rate decisions are heavily driven by this data as so we could see some big market movement depending on the outcome.
Overall for sterling to euro it is currently a buyer’s market, with prices hovering around the top of its range for the last two years or more. At present this is an excellent buying opportunity for anyone with an up and coming currency requirement, compared to most of the last couple of years.
For Sterling to dollar, we have seen a bit more volatility, following on from Trump winning the presidential election, but also some more economic data releases to be announced.
We have today USD GDP – Gross Domestic Product – to be announced at 13:30.
Depending on the result, this can be a strong market mover. However the real driving factor for dollar strength against sterling at present is perhaps down to Trump’s new tariff plans.
This will likely raise inflation aggressively, and so shoot up interest rates in the months to come, which is already being priced into the market.
If you have an up and coming dollar requirement, you might therefore like to get in touch with your currency consultant to discuss take advantage of the rates before they potentially drop any further with Trump’s upcoming changes.