By Simon Eastman
The last few days have shown some fantastic buying levels for euro buyers, as speculation over interest rate hikes came back into the fore.
On Monday the Bank of England member Andrew Bailey hinted interest rate hikes were “back in play”. On Tuesday, unemployment figures came in lower than expected, whilst average earnings increased. Then on Wednesday, UK inflation came out higher than forecasts, leading markets to increase speculation over whether the Bank of England will now raise interest rates at the next meeting in December.
With that speculation, the pound increased 2 cent against the single currency, actually breaking higher still to fresh highs during US and Asian trading overnight. As European trade opened yesterday, we were above key resistance levels with a new ceiling in sight but with no data for the UK or the EU, it seemed traders were profit taking from the gains, as the pound suffered throughout the day, losing over half a cent, falling back below the latest resistance floor.
As we close the week, we have a variety of data which will dictate the pound’s direction, so buyers take note. We kick off the day with UK retail sales released alongside German inflation data. Following these, at 8.30am, we have a speech by European Central Bank (ECB) President Christine Lagarde. Some low key EU figures to follow, ahead of the Canadian retail sales at 1.30pm with the week closing off with a couple of Fed member speeches across the afternoons trade.
For those with a euro purchase to make, who haven’t taken the profitable plunge already, get in touch with one of the team at your earliest convenience today. We have already seen a correction, which could well correct further, data dependant if it misses forecasts or traders decide to cash out further profits so make the most of your pound and call to discuss the various contracts available to maximise returns.