By Luke Dyson
For the week to date it has been a busy one for sterling, Euro and USD, focused economic data releases.
On Tuesday 30th for Euro GDP (economic growth), results came back as flat (0%), improving slightly from the -0.1% which was forecasted.
On Wednesday 31st we saw the Federal Reserve hold an interest rate decision, resulting in 5.5% remaining the same until further notice.
Then for sterling on Thursday 1st which we had all been anticipating, the Bank of England interest rate decision, with the previous being 5.25%. When announced we saw the base rate remain the same, and some slight market movement straight after this. However, markets stabilised quickly and sterling still remains very strong and right at the top of the current range against the Euro.
Moving onto later today we have a big day for the USD. Being first Friday of the month, non-farm payrolls at 13:30, which is more than capable of making the market jump (result dependent).
Given where sterling is at the moment against the euro specifically but also the dollar to some extent, it seems very well priced when compared to where we were 12 months ago.
If you have an up and coming currency requirement please get in touch with your currency consultant at A Place in the Sun Currency, whether this is just to get a strategy in place or take advantage of the current rates by securing a contract. Be wary of leaving yourself exposed on the hope the market gets better!