By James Caley
Last week proved to be another positive one for those eyeing the Euro, with exchange rates staying near the top of their 12-month range. The week’s lowest rates were 0.8 cents below the best, presenting advantageous opportunities for individuals looking to invest in sunnier climates. On the flip side, this wasn’t great news for sellers in Europe or those bringing funds back to the UK.
Meanwhile, the dollar continued its gradual downward trajectory, ending approximately 1 cent lower than its started. The week witnessed some volatility, driven by a flurry of data releases that had both a positive and negative effect on the dollar vs the pound.
As we kick off this week, it’s relatively quiet on the UK data front, with only Rightmove’s house price data making an appearance. Additionally, Presidents’ Day in the United States means US markets will be closed, contributing to a subdued start.
The mid-week landscape becomes more dynamic, featuring a Federal Reserve speech by Michelle Bowman on Wednesday evening. Shortly followed by the release of the FOMC (Federal Open Market Committee) Minutes, providing concise insights into the monetary policy stances of committee members and their perspectives on the USD and other securities. The sentiments expressed in these minutes are likely to influence market movement in either direction.
Thursday brings a surge in activity with major economic data releases in the UK, Europe, and the US, offering a comprehensive look at business, service, and manufacturing sectors across all three jurisdictions.
For those with an imminent currency requirement, our team of expert currency consultants is ready to guide you through the data and assist in mitigating any potential risks associated with adverse market movements.
Monday
- Rightmove Houseprice data
- USA presidents day so the banks are closed
Wednesday
- Fed Boman speech followed shortly after by;
- FOMC Minutes (Federal Open Market Committee). The FOMC holds eight regularly scheduled meetings during the year and other meetings as needed. The minutes these meetings are released three weeks after the date of the policy decision. The minutes offer more concise insights on the monetary policy stances of all members of the committee and how individual members see the value of the USD and other securities.
Thursday
Things start to get busy again with:
- HCOB Services PMI – leading indicator gauging business activity in the Eurozone services sector. As the services sector dominates a large part of the economy, the Services PMI is an important indicator gauging the state of overall economic conditions.
- HCOB Composite Purchasing Managers’ Index (PMI), is a leading indicator gauging private-business activity in the Eurozone for both the manufacturing and services sectors.
- HCOB Manufacturing PMI – indicator for manufacturing sector in the Eurozone
- S&P Global /CIPS release its indicator for services, manufacturing and private-business activity in the UK & the US