By Simon Eastman
Last week we saw the war in the Middle East continue to dominate markets, especially the US dollar as ceasefire talks provided risk off sentiment, allowing the recent strength of the greenback, from safe-haven status to drop off and we saw GBPUSD move in a 2-cent range over the week.
With no data of note out, market sentiment on other currencies was low, giving a week of rangebound trading on GBPEUR, moving within a half cent range over the week.
The week ahead is more interesting from a data point of view, with UK unemployment, inflation, and retail sales to contend with, alongside US retail sales and EU PMI data. For those with sterling in hand, we could see a more volatile week so worth staying in contact with your currency consultant here to navigate the choppy waters.
Unlike the oil tankers in the Strait of Hormuz, which once again has been closed off by Iran, causing President Trump to rant further ahead of negotiations today in Pakistan, threatening to “destroy all power plants and bridges”.
With the ceasefire fragile and markets volatile, some surety on your upcoming currency requirements might be the most prudent option. Speak to us today regarding Forward Contracts, which allow you to lock in the exchange rate and buy your future currency requirement today, with just a small initial downpayment. This means you have peace of mind on your budget and should the pound drop going forward, you are totally protected. Speak to the team today to discuss your requirements and find out how we can make your money go further.
The Week Ahead
Monday: Canadian inflation
Tuesday: UK unemployment and average earnings. German ZEW sentiment surveys. US retail sales.
Wednesday: UK inflation. German Bundesbank monthly report. ECB member speeches from Elderson, Lane, Cipollone, Sleijpen, Nagel and President Lagarde.
Thursday: German, EU &US manufacturing, composite and services PMI.
Friday: UK retail sales. German IFO surveys. Canadian retail sales.