Welcome to the Angloinfo weekly currency round-up from Currency UK. We aim to answer the big questions you may have regarding the world of currency without all the jargon. Each week we’ll be summarising the week gone by, as well as highlighting some things to look out for in the coming week.
Last week, the pleasing news of Brexit talks making progress seemed to fade away, as the reality of just how much there is still left to discuss before the March 2019 deadline sets in. Doubts over whether the negotiations would be wrapped up in time caused the Pound to weaken over the week against its rivals, such as the Euro and US Dollar.
Across the pond, President Trump suffered a setback as the Republican candidate lost the state election in Alabama, and it’s the first time the state has elected a Democrat in 25 years. Interest rates were increased by 0.25% to 1.5%, but despite this, the Dollar weakened against rival currencies. This may, in some part, be due to the uncertainty that still surrounds the tax reform bill.
In Europe, especially towards the end of the week, positive data releases from some key EU countries (e.g. Germany, France, Spain) saw the Euro strengthen against the Pound. The Euro gained more support following Angela Merkel’s affirmations that she is working hard on forming a coalition government.
Looking forward, it’s a quieter week than last week. In Australia, some economic data is being released and the Royal Bank of Australia are meeting on Monday and Tuesday respectively. These events have the potential to affect the strength of the Australian Dollar.
In Europe, data regarding price movements is due out on Tuesday which may affect the Euro against other currencies like the Pound and US Dollar.
On Thursday, the Bank of Japan will be making a decision on whether to adjust interest rates, so, if you’re going to be dealing with Japanese Yen this week, you may want to pay attention to this.
The week ends with data releases from the US regarding GDP and consumer spending on Thursday, as well as it being the US government’s shutdown limit on Friday. Disappointing releases could weaken the Dollar.
If you are planning any transactions next week, these are events that you will want to consider. Contact Currency UK for more information.