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Mixed week for Sterling Exchange Rates (Tom Holian)
Already this month Sterling has moved by over 4% from the high to low against the single currency as the Eurozone finally began their first round of Quantitative Easing.
This saw Sterling reach an 8 year high against the single currency and the highest level reached pre-credit crunch for GBPEUR exchange rates.
The Euro has also weakened to its lowest level against the US Dollar in over ten years which has caused global investors to sell Euros to buy Sterling hence the positive movements for Sterling during March.
However, over the last few days we have seen UK unemployment drop below expectations of 5.7% which although the figure is arguably very good for the British economy the markets will often move on expectation so a fall will often result in a bit of weakness for the currency involved.
The UK Budget did not really throw up many surprises so the exchanges rates remained static during the announcements.
On Friday Sterling saw a fall toward the end of the trading session as profit taking took place.
Next week the biggest day for Sterling Euro exchange rates will arguably be Tuesday as the UK releases inflation data. If UK inflation falls this typically results in weakness for Sterling as it puts off an argument for putting up interest rates.
I expect to see a fall in inflation owing to energy price falls so therefore expect to see Sterling fall against the single currency on Tuesday providing a good opportunity in the short term to sell Euros into Sterling.
On Thursday we could see Sterling recover against the Euro with the release of UK Retail Sales which have generally been on the rise.
If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian [email protected]
Source: http://www.poundsterlingforecast.com/2015/03/21/mixed-week-for-sterling-exchange-rates-tom-holian/
