By James Caley
It’s been a subdued start to the week for currency markets, with Sterling trading broadly unchanged against both the Euro and the US Dollar. The lack of major UK data has kept volatility low, while global markets continue to take their cue from sentiment around growth and interest rate expectations.
In the UK, early-week releases such as mortgage approvals and real-time business indicators have done little to shift the outlook. The data suggests that while activity remains steady, there’s no clear momentum either way, leaving the Pound without a strong domestic driver.
Attention now turns to Wednesday evening’s Federal Reserve meeting minutes, which could inject some movement into Dollar pairs. Any hint of caution on growth could weaken the Dollar, offering a modest lift to GBP/USD and EUR/USD, whereas a firmer stance on inflation may strengthen the Greenback again. Closer to home, the UK ONS “real-time indicators” due Thursday are unlikely to be market-moving but will still provide a snapshot of consumer and business behaviour heading into autumn.
For overseas property buyers, especially those purchasing in Euros, the quiet trading conditions won’t last indefinitely. Even small percentage shifts can alter the overall cost of a transaction, and with several larger data releases on the horizon next week, locking in rates while markets remain calm could prove sensible. Waiting for more volatility carries both opportunity and risk, and this week’s stability may not hold for long.