After last week’s mini-collapse in the value of sterling, this week sees some major data releases which could make it a week of volatility in the foreign exchange markets.
First up, Tuesday morning’s UK house price index and German economic sentiment numbers may both have an effect on the best Euro exchange rates. A larger than expected drop in UK house prices would not be good news for the struggling Pound, while conversely we might see German business confidence taking a knock which would be likely to make the Euro slightly cheaper.
On Wednesday, the monthly minutes from the Bank of England’s monetary policy committee are released, with detailed notes on the state of the economy and the Bank’s trial of quantitative easing. Again, volatility is likely, specially as unemployment data is released simultaneously.
For anyone needing to send money to Canada or the USA, Thursday brings Canadian inflation data at 11am, followed by US employment data at 12.30 and manufacturing data at 2pm.
Finally on Friday we have EU trade balance followed by Federal Reserve chief Bernanke’s speech at 4pm.
Any individuals or businesses with an exposure to the forex markets would be well advised to contact a specialist currency company. to keep an eye on the relevant rates this week. The fragility of the Pound is likely to last for some time, but there are still opportunities to secure reasonable rates for buyers and sellers in the know
