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A fairly quiet week for GBP but what else has the potential to move the markets? (Alistair Ryan)
After a busy week last week for Sterling this week seems as though it is going to be a lot quieter. Last week we saw UK Gross Domestic Product (GDP) figures come out at 0.3%, meaning that the UK avoided going in to another recession and providing a spike for Sterling against most major currencies. There is not a lot of data out for the UK this week, manufacturing data came out better than expected this morning and we saw a small spike for the pound but apart from this there doesn’t seem to be much going on in the UK.
In my opinion there are two data releases this week that have the potential to rock the markets. First up is the European Central Bank (ECB) Interest Rate Decision which will be released at 12:45pm tomorrow afternoon. There is a lot of speculation at present that the ECB are going to cut interest rates to improve their declining inflation. Inflation figures for the Eurozone were released yesterday showing a 0.5% decline. Generally an interest rate cut will increase public spending, in turn boosting growth and inflation. If the ECB chooses to cut their rates then I can see a strong bout of euro weakness against most major currencies, however with so much uncertainty still surrounding the Eurozone I can’t see this holding for very long.
I think that the other major data release this week could be US Non-farm payroll data out at 1:30pm on Friday. This always has the potential to change month by month and has a reputation for moving the markets significantly after its release. It is expected that the figure will be announced at 150,000 but anything other than the expected could cause some significant USD volatility.
We have a number of different contract options available that can help you make the most of spikes in the market, whether they are moving for or against you. If you would like to speak with one of our professional, friendly currency brokers then please contact me direct at [email protected]
2013-05-01 12:51:54
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