Sterling continues rally against Euro, falls versus US Dollar

Friday was a relatively quiet end to a busy week with the Pound gaining 0.25% against the Euro before settling back at the levels we had seen at the start of the day, while falling slightly against the US Dollar where it closed the week at 1.6840. The reason for the initial pick up against the Euro was slightly disappointing Eurozone data; German IFO business climate was lower than expected, while Italian retail sales data was negative again (we haven’t seen a positive reading since July 2013!). However, as is often the case the rate fell back away from a fresh 18 month high as it has done on previous occasions during 2014. This further highlights what a great time it is for Euro buyers at present, with a €250,000 purchase now £7,600 cheaper than at the 2014 low seen in March.



Those of us in the UK and US got to enjoy a longer weekend than our friends in the Eurozone, so there were no data releases yesterday from either side of the pond, but in the EU we had a pretty busy morning. First we had German Consumer Climate Data which came in as forecast and so had no effect on the markets.

This was followed by an opening speech from Mario Draghi at the ECB Forum on Central Banking – “Monetary Policy in a changing financial landscape” from Sintra, Portugal. The markets were eagerly looking for signs of what we may expect from the next ECB meeting due to be held next week, especially after numerous comments from members of the ECB rate setting committee last week in regards to the potential for Quantitative Easing in the coming months.

 “What if I don’t have time to watch the rates?”

That’s what we are here for. Opening an account with the Foremost Currency Group is free, doesn’t obligate you in any way, and has the added benefit of giving you a dedicated account manager. You can then use us as your “eyes and ears” in the markets whereby we can watch the rates for you and tailor the best approach, using our range of foreign exchange contracts, to find the best possible time to buy your currency within your given timescales.

Today’s Economic Data Releases

Today we get started with mortgage approvals from the UK at 09:30 which are expected to show a marginal decline on the previous month, while from the Eurozone we have Mario Draghi’s closing speech at the end of the ECB Forum. This will again be monitored closely for any indications as to what we can expect from the ECB meeting next week. From the US we have Core Durable Goods Orders and Consumer Confidence data, both of which are good barometers of the US economy so can impact the GBP/USD exchange rate.

Written by, James Spurway, Tuesday 27th May

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