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Huge Volatility for Sterling Euro & USD next week (Tom Holian)
All three major currencies the Pound, Euro & US Dollar are all in line for a volatile next few days as the month draws to a close.
Already this month Sterling vs Euro exchange rates have hit their highest level since 2007 to buy Euros meaning that a currency transfer to send funds to Europe has become significantly cheaper.
UK GDP data is due out on Tuesday for the second quarter of this year and with the previous quarter showing growth of 2.9% I think this could cause Sterling to fall if the data is not as good as expected.
Indeed, with Sterling having been trading so high vs the single currency this will ultimately cause less demand for British exports resulting in problems for the UK economy so Tuesday’s release could confirm this prediction.
Arguably the biggest market mover for the upcoming week is the US FED interest rate decision on Wednesday evening.
There have been persistent rumours for months that the US will be the first major economy to raise interest rates and this is possibly why we have seen the Dollar strengthen over the last few days.
Indeed, if they do this is likely to see GBPUSD rates drop dramatically.
On Thursday the US announces Quarter 2 GDP figures so like with the UK release even if the FED doesn’t raise rates if the data is strong this is likely to give more support to the Dollar and convince the FED to do something soon.
Finally, on Friday the Eurozone announces Inflation data as well as unemployment which could see the week end with huge movements for Sterling vs Euro.
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/2015/07/24/huge-volatility-for-sterling-euro-usd-next-week-tom-holian/
