By Grace Smyth
2022 saw the foreign exchange markets experience some critical market moving events and the year ahead could likely provide more of the same.
Exchange rates have not moved far from the year end levels amid thin trading as major markets have remained closed, however the new year is now underway and with it comes fresh economic data releases. This week we have a line up of final December PMI readings for the UK, US PMI readings, Federal Reserve FOMC minutes, US unemployment and non-farm payroll as well as Eurozone Retail sales figures.
From the above the releases to note: On Wednesday the FOMC meeting minutes will be posted showing investors what was discussed at the last meeting. Revealing details regarding the Fed’s last hike in December and what the rate is set to look like for 2023. The US PMI data due on Friday should provide indicators about that state of the US economy, with many economists expecting the US to enter a recession in the first half of the year, the PMI’s will let them know if it has already begun. Non-farm payroll is equally worth a mention given the vast amount of information that come with it (unemployment rate and average hourly earnings).
With a fair amount of data out, this trading week has the potential to start with some aggressive moves, so those with a upcoming currency requirement should prepare for heightened volatility. Get in touch with us here today and speak to one of our friendly team of currency consultants to discuss your needs, the options we provide to help you make your money go further, and get you one step closer to your dream home abroad.
We would like to take this opportunity to wish all our customers a happy new year and we look forward to helping you with your currency requirements throughout the year ahead.