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Sterling rates have been fairly stagnant over the last few weeks and even large data releases or announcements have struggled to move rates by any significant amount. Last week we saw GBP/EUR rates move within a range of 1.2%, with a low of 1.1774 compared to the week high of 1.1923. GBP/USD moved slightly less hitting a week low of 1.2848 and a high of 1.2986, a movement of 1%.
GBP/EUR exchange rate graph
GBP/USD exchange rate graph
All eyes last week were on Super Thursday, when the Bank of England released a host of data at the same time including the Interest Rate Decision and Quarterly Inflation Report. There was a lot of anticipation around the markets that this could have been the release to really move the pound, maybe even push GBP/EUR rates through that elusive 1.20 barrier that it has found so hard to break through.
As it happened markets were drawn to the negative data that came from Super Thursday, and sterling rates dropped slightly across the board. Mark Carney, Governor of the Bank of England, clearly stated that prices were expected to far outgrow wage growth over the coming years and they also cut their UK growth forecast for 2017 stating that household spending is slowing more quickly than expected.
Where next for sterling rates?
French elections are now over, we are still a few weeks away from the UK General Election and most of the key data releases for the month are behind us, so does that mean that we are in for a prolonged period of stagnation on the currency markets?
Currency markets move on rumour just as much, if not more, than they do on fact and there is still a lot going on to talk about. It doesn’t look like Brexit negotiations are going to be too smooth and any rumours coming out of either the UK or EU camp could swing markets either way. We also have the upcoming General Election in the UK and whilst it looks like the Tories will post a landslide victory investors will be very reluctant to listen to the polls, considering how well that has gone over the past year. This could bring along some safe haven swings on a number of different currencies. So there is still a lot of potential, either way, for movement on the currency markets and in these uncertain times it could prove prudent to stay in touch with your account manager here at Foremost Currency Group.
Get in Touch
Here at the Foremost Currency Group we can act as your eyes and ears on the markets to help you find the opportune timing to make the most of your currency. We have a number of different contract options to help safeguard your funds against adverse market movements. One of these being a Forward Contract whereby you can lock in an exchange rate for a future settlement date by simply placing a small margin against the trade.
If you would like to speak with one of our professional, knowledgeable currency specialists please get in touch for a free, no obligation consultation.
Today’s Data Releases
It is a very quiet day for data releases today. There are no releases out of the UK at all.
Over in the Eurozone there will be inflation figures out of Italy and Germany will be releasing a BUBA Monthly Report but neither of these should affect the currency markets.
The US will be releasing a couple of very low key data releases in the form of a three and six month Bill Auction and a Housing Price Index.
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