Is Sterling Due A Retracement?

Last week we saw GBPEUR rates go beyond 1.26 and GBPUSD rates nearly hit 1.72 - Both being massive highs for these currency pairs.

The question on everyone's mind now is- How long will this last?

Much of this recent movement on the markets has had to do with the fact that Europe's interest rates are at an all time low, and they plan to be for the foreseeable future- Low interest rates= No investment. However this is the only way we will see a recovery in Europe.

If you are purchasing currency from Sterling this week- Then below are the main data points to look out for before making a buying decision;

Tuesday- 9:30am- British Industrial & Manufacturing Production- Both YoY figures expected in stronger than previous.

3pm- GBP NIESR GDP estimate

Wednesday- 7pm- USA Fed Meeting Minutes released

Thursday- 12pm- BoE Rate decision & Asset Purchase Target

1:30- USA Jobless Claims data

This will be a volatile week, if you require more in depth analysis don't hesitate to email or call me directly.

prem.raja@currencies4you.com
01322 319 555