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 Pound generally maintained its strength. At the start of the week, reports of discontent with Theresa May’s leadership gave the Pound a wobble, and uncertainty surrounding at what point in the Brexit process the UK can start to made trade deals caused a minor slump. However, positive comments from the Bank of England governor Mark Carney boosted the Pound in the middle of the week. Towards the end of the week, the Pound weakened slightly mainly due to the strength of rival currencies such as the Euro and the Dollar.
Across the Pond, the Dollar had a varied week. Trump’s much-anticipated first State of the Union Address was underwhelming as it was very similar to what he had said in Davos the previous week. This, as a result, did little to help the Dollar. However, on Friday, Nonfarm payrolls data was very positive, which strengthened the Dollar against the Pound and the Dollar.
In Europe, the Euro also had a varied week. Comments from members of the European Central Bank (ECB) seemed to weaken the Euro at the beginning of the weak. This was reversed by positive GDP data midweek from the Eurozone overall. This strength was supported towards the end of the week following positive manufacturing data and positive comments from ECB members. However, due to the aforementioned Nonfarm payrolls data in the US, the Euro weakened against the Dollar on Friday.
We’re still in Oceania on Wednesday where the Reserve Bank of New Zealand will be making their interest rate decision as well as releasing their monetary policy statement. Again, if the interest rates rise, the New Zealand Dollar could strengthen, so be on the lookout for that if you’re dealing with New Zealand Dollars anytime soon. Also on Wednesday, the ECB are holding a non-monetary policy meeting.
On Thursday we’re back in Australia for RBA’s Governor Philip Lowe’s speech. It’s also (potentially) a big day for the British Pound, with the Bank of England’s interest rate decision, monetary policy statement, and a whole host of other data releases. Pay attention on Thursday if you’re going to be dealing with Pounds this week.
To finish the week, we’re back in, you guessed it, Australia! The RBA are announcing their monetary policy. We also see unemployment data from Canada later on Friday; a positive release could strengthen the Canadian Dollar.
If you are planning any transactions next week, these are events that you will want to consider. Contact Currency UK for more information.