By Luke Dyson
For the week to date it has been a relatively turbulent one for most major currencies. Starting with pound, we have had a 3 day decline against both the euro and the US dollar.
This slow but steady decline has been driven by two major factors. The first being the consensus for a rate cut by the Bank of England next Thursday 1st August is 50/50. Currently at 5.25% , we may see a cut to 5%, which isn’t ideal for the pound, as investors will start to begin to withdraw money from the UK to find higher rates elsewhere.
The second one being that the market has now settled after a world wide computer outage last Friday, which then has left the Nasdaq and S&P500 having their worst day’s fall percentage wise since 2022 when most technology stocks tanked.
Going into next week we have a very busy one data-wise:
Tuesday 30th: 10:00 am eurozone GDP
Wednesday 31st: 19:00pm Fed interest rate
Thursday 1st 12:00 BOE interest rate decision
Friday 2nd: 13:30 non farm payrolls
These are all key data releases which have the strength to significantly move the markets for sterling, euro and dollar depending on the outcomes. Given where the market is at present it’s still a very good buying opportunity, still very near at the top of the current range for buying euros with sterling in particular.
If you have an up and coming currency requirement please get in touch with your currency consultant at A Place in the Sun Currency today to discuss current rates, ahead of the busy week ahead.