By Ashley Finill
Last week saw Sterling hold firm against the Euro and it will be hoping for more of the same this week. The Pound had been supported by better than expected economic data, which showed growth in the economy, and as a result the Pound clawed back some ground on the Euro.
At the back end of the week Sterling slowed in momentum, with the Euro showing signs of making a recovery, but overall the Pound remains in a fairly strong position. As we are still trading close to a 14 month high it may be worth considering locking in your currency now to remove your risk from the unpredictable currency market. We have options, like our forward contract, where you can secure all your currency with only a 10% deposit, to remove the risk in an uncertain market. To get more information on this, speak to your currency consultant today.
For Dollar buyers, Sterling has also clawed back some ground gaining around half a percent last week and nearly 1% up across the month. Again, should you have a requirement for USD it may be worth considering our forward contract option.
Key UK data could move Sterling this week
This week there are a few data release from the UK economy to take note of that are likely to effect the Pound. We start on Tuesday with the latest employment figures, followed by the latest inflation figures on Wednesday, which will be particularly important for the Pound. Inflation is expected to have increased, partly due to higher energy costs, and a higher than expected figure could provide support for Sterling, as a higher reading would suggest that the Bank of England will likely hold interest rates at their next meeting. We then finish the week with the latest UK PMI figures, giving us another indication of how the UK economy is performing.
With this important data being released, we could see some increased movement in Sterling this week. All other important data releases from other regions are below. As mentioned, for anyone with an upcoming currency requirement, it could be worth speaking to your currency consultant and discussing your options.
Monday
10.30am – EU – ECB’s Lane speaks
1.30pm – CAD – BoC Consumer Price Indes
Tuesday
7am – UK – Unemployment rate
10am – EU – ZEW Survey
1.30pm – US – industrial production
Wednesday
7am – UK – inflation
8.10am – EU – ECB president Lagarde speaks
10am – EU – Harmonised index of consumer prices
7am – US – FOMC minutes
Thursday
2.30am – AUD – Unemployment figures
7am – EU – PPI
1.30pm – US – Initial jobless claims
8.30pm – EU – Sleijpen speaks
11.45pm – NZD – Exports, imports & trade balance
Friday
12am – AUD – S&P PMI
7am – UK – retail sales
9am – EU – HCOB Services PMI
9.30am – UK – S&P PMI
1.30pm – CAD – Retail sales
2.45pm – US – S&P PMI 3pm – EU – Consumer Confidence