Busy week this week for the Pound!

After a nice relaxing bank holiday weekend; there will be no easing into things from tomorrow morning; Sterling has been going from strength to strength over the past 2 weeks, but how long will it last?

GBPEUR Rate- 1.2160

GBPUSD Rate- 1.6796

Tuesday;

Tuesday we see a host of low priority data coming out of Europe, such as Euro-Zone Construction Output; however the one to watch tomorrow in Europe will be their consumer confidence data; as a whole we have seen Europe strengthening as an economy recently, and this data will solidify their position. We also have existing home sales coming out of the U.S, which is expected to come out on par with forecasts as the U.S economy and housing market has started to get back into shape.

Wednesday; 

Wednesday we see the Australian consumers price index (The headline inflation gauge for Australia); Which is expected to come in very strong, and with the GBPAUD exchange rate dropping recently from the 1.81 area down to 1.77, it is probably best for AUD buyers to take advantage of these exchange rates now before they drop even further as Australia is releasing strong data on a weekly basis at the moment. 

However the main focus for Wednesday will be the BoE Minutes; Traders are still looking for indications of interest rate rises through these minutes, though it has been reiterated that it will not happen any time soon, however it will be interesting to see how many members vote for further stimulus or a rate rise. for GBPEUR buyers this may be a good opportunity as the UK has produced good data over the last couple of weeks.

We also see the NZD bank rate decision on Wednesday night, and it is expected that they will raise their interest rates from 2.75% to 3.00%, should their be any change to this, expect to see moves in the market following this.

Thursday;

On Thursday there is expected to be weak data from both Germany and the USA with low figures expected from Germany's IFO - Business Climate and an increased forecast for the jobless claims in the U.S. It seems that the market has already priced in weakness in the U.S dollar, but should these figures come in weak, I wouldn't be surprised if the rate pushed further by another cent. 

Friday;

Finally on Friday we have retail sales data coming out of the UK; which are expected strong, however with such a busy week on the FX markets buyers may see great opportunities before Friday to purchase their currency, as if these figures come out slightly less for whatever reason, there will most probably be a drop in the great exchange rates we have seen.

For any further information please don't hesitate to contact me on 01322 319 550 or email me prem.raja@currencies4you.com

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