Weekly Forecast (15/06/2014)

After a busy week on the markets following the BoE's shock announcement about an interest rate rise; Sterling was given a significant boost past the 1.25 area against the Euro and above 1.69 against the Dollar.

The next thing on everyone's mind is, how long will this last?

The important thing to know about the FX markets is when a currency has gone up a significant amount in a short space of time, you can always expect it to retrace. There is a lot of data releases this week, so it is important to know what will effect your currency transaction, as you won't want to buy at the wrong time and miss a potential gain on the markets!

Monday

On Monday the main release is from Europe, their Consumer Price Index is expected in weak- (For those who don't know, CPI indicates the prices consumers are paying for products in this economy, lower prices indicates a bad economy) Should this come out as expected, then we can expect the markets to stay strong, however if the data comes out stronger than expected, then you can almost definitely predict the market to retrace.

Tuesday

Tuesday is an important day this week; With the below data releases;

• GBP Consumer Price Index


• GBP Retail Price Index


• EUR German ZEW Survey


• USD Consumer Price Index

As you can see, the releases will give a good indication about the economy in the UK, and if they come out strong, we can see that last week's announcement from the BoE will most probably materialise.

Wednesday

The main highlight for Wednesday is the BoE minutes, however I don't expect much movement on this due to last week's speech, I don't think we will receive any clarification from this months minutes; However we may see some results on Asset Purchasing.

Thursday

On Thursday we see Retail Sales data being released out of the UK, now this is expected on very strong, so it may be a good idea to wait until Thursday before making your purchase as we may see a market move then, however it is always worth hedging yourself (Contact me to find out how) Instead of just gambling it.

I hope you are all enjoying the World Cup (After the England match... I'm not!) And if you require any further assistance, then please don't hesitate to contact me directly via email or telephone.

Email- Prem.Raja@currencies4you.com

Telephone- 01322 319 550