The Bank Of England are first to step forward and release their interest rate decision at 12:00pm and although no change in rates are expected all eyes will be on whether or not the plan to draw a line under the Quantitative Easing plan which currently stands at £200Billion. There are a lot of major analysts and investors that believe that the plan has not worked so far so should the BOE not rule out continuing it we may see Sterling weakness.
Next is the European Central Bank at 12:45pm and once again no change in rates is expected however generally after the announcement president Jean Claude Trichet speaks about future economic policy so any mention of future rate hikes could still lead to volatility for the Euro.
Should you have a Pound to Euro transaction in either direction to make it may be prudent to get in touch with your account manager here at FCD this morning to discuss the many options available to you inclusive of forward contracts, limits and stop orders. If you do not already have an account open click here to open one right now – it’s free and carries no obligation to trade.
Following this decision at 13:30pm we see a flurry of U.S unemployment data which can cause a lot of volatility for the Dollar which has now been notably tipped to gain against the Pound in the coming months.
"Superior U.S. versus UK GDP growth differentials, UK election uncertainty and the risk of a UK ratings downgrade cast a dark cloud over the GBP/USD outlook for the next few weeks and months," said Kenneth Broux at Lloyds TSB.
With potential movements like this anyone with an upcoming USD or AED (pegged directly to the Dollar at a rate of 3.6725) transaction may want to seriously consider their options and by calling us on 0800 328 5884 you are one step ahead.
15:00pm brings PMI data for Canada which measures the general business conditions for the economy any change to what is expected could lead to medium market movements.
If you would like to discuss any of the information in this report and how it may affect your transfer do feel free to email me
This is a brief summary of todays report for further information on the currency markets or if you have an upcoming transfer to make and want to discuss the options available to you call Daniel Wright on 01494 787462 or email me djw@currencies.co.uk
I assist thousands of clients to send money overseas or receive money from overseas involving the following currencies - Please note I do not deal with cash it is bank to bank only!! AED AUD BHD CAD CHF CZK DKK EUR GBP HKD HUF INR ILS JPY KES KWD MAD MUR MXN NOK NZD OMR PLN SAR SEK SGD THB TRY USD ZAR
Have a great day and thanks for reading!
Daniel Wright
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[09:07:23] Chris Knights:
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