This report is written for current and potential clients of Foreign Currency direct to provide important information on Sterling and a basket of major currencies recent movements alongside providing vital information on upcoming data releases that may effect the cost of sending money overseas or bringing money back.
Friday’s movements
GBP-EUR 0.73% GBP-USD (0.39%) GBP-AUD 0.40% GBP-NZD 0.21% GBP-CHF 0.39%
Sterling Report
The Pound made considerable gains against a most major currencies in Friday afternoons trading bringing some of the best exchange rates of the week. The most notable of moves being against the Euro where gains of over half a percent were seen in the final hours of trading.
This was mainly down to one of the largest credit ratings agencies in the world announcing that the U.K and the States top AAA rating was under no immediate threat which instantly bought more confidence to Sterling and the Dollar.
Moody’s Investors Service also said that indeed the earliest they could see a change being made to the rating would be 2013 and even then that would be a worst case scenario.
Sterling failed to make any ground against the Dollar following slightly better than expected data in the U.S coming out on Friday and in general the Pound would have gained more against a basket of currencies however Alistair Darling’s Pre budget report was still holding it back as it is widely thought that he is not doing enough to tackle the U.K’s ballooning deficit.
"Poor sterling fundamentals and the fact that the dollar is on a bit of a bounce is seeing sterling/dollar on the downside," said Michael Hewson, analyst at CMC Markets.
"Moody's has said the UK is in no imminent danger of a ratings downgrade, but this does not change the fundamentals and the fact that no meaningful steps are likely to be taken, at least for the next six months," he said.
These movements really do once again prove why that if you do have a transfer to make it is imperative to have a free, no obligation trading facility open here at Foreign Currency Direct which can be opened in just two minutes by clicking here. Once open you will be allocated a personal account manager who can contact you to inform you of movements throughout the day should you wish. Catching the Euro rate yesterday afternoon during the spike could of gained you over €350 on a £50,000 purchase.
Sterling forecast - the days ahead

Today - Following the Rightmove house price data released this morning there are only three releases of note today starting with Swiss inflation data at 08:15am which could cause volatility for the Swiss franc, this is followed at 10:00am by some European employment change and industrial production figures - any change to the expected figures could set the scene for the day for the Euro so be sure to keep a close eye on this one and be prepared to act fast if you have a trade to carry out.
Tuesday - One for the early birds sees the Reserve Bank of Australia release their minutes and following three consecutive rate hikes they may indicate how likely it is to see a fourth, anyone with Australian Dollars to buy or sell may want to lock into a rate today or put in a stop loss and limit order to avoid waking up to your money being worth a lot less than it was before you went to bed.
Also due over the course of Tuesday is production data for Switzerland at 08:15am, a flurry of inflationary data for the U.K at 09:30am, German ZEW sentiment data at 10:00am and inflationary/production data for the States at 13:30pm and 14:15pm respectively.
This promises to be a busy day on the markets and some great buying and selling opportunites may pop up during the day so inform us of your requirements and let us watch the markets for you - If there is a specific rate you are looking for there are many tools available to assist with your needs, call 0800 328 5884 now for further information on how these work.
Wednesday - Another extremely important overnight release from Australia which could once again bring large market movements in the early hours is the Gross Domestic Product data due at 00:30am. Expectations are for 0.6% growth in the last quarter and any change to this is bound to cause AUD movement.
The rest of the day brings a large amount of unemployment data for the U.K at 09:30am which could lead to high volatility dependant on what comes out, further inflationary data for the Eurozone and U.S at 10:00am and 13:30pm leading up to the Federal reserve interest rate decision at 19:15pm.
No change in rates is expected however be aware of any mention of future economic policies which may have an affect on the Dollar.
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Have a great day and thanks for reading!
Daniel Wright
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