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 was a disappointing one for the Pound. At the start of the week, the Pound gained some support from positive comments from the Bank of England. However, this was short-lived, as Brexit issues weighed the Pound down (again). The Northern Irish border was back in focus, with talk of potentially having a ‘hard’ border, causing the Pound to weaken. Things were made worse by UK officials rejecting the EU’s proposed withdrawal plans
Across the Pond, the Dollar strengthened consistently against the Pound and the Euro for most of the week. There were high expectations for the new Federal Reserve chair Jerome Powell’s comments, and he seemed to meet them, talking optimistically about the US economy strengthening, which boosted the Dollar. This boost was supported by positive data from the US in the middle of the week. The Dollar did, however, fall against the Euro towards the end of the week as a result of some disappointing economic data.
The Euro had a relatively mixed week. The strength of the Euro seen at the start of 2018 seems to be fading. This comes in part due to comments from the European Central Bank (ECB) and political concerns in Germany, where the government is still struggling to secure a coalition. This, coupled with disappointing economic data mid-week, held the Euro down generally, with it bouncing back somewhat against the Dollar towards the end of the week.
Looking forward, the significant economic data starts on Tuesday in Australia, where the Reserve Bank of Australia (RBA) will be making their interest rate decision, and the RBA governor Philip Lowe will be giving a speech. Those of you dealing with Australian Dollars in the coming week should pay attention to these events; they have a high potential to affect the strength of the Australian currency.
On Wednesday, the European GDP data will be released, and over in Canada, the Bank of Canada will be making their interest rate decision. These a two significant economic events that the markets will be watching closely, so you should too if you’re going to be dealing with Euros of Canadian Dollars in the coming week.
On Thursday, the ECB takes the spotlight is making their interest rate decision and making a statement on monetary policy.
It’s a similar story for Japan on Friday, where the Bank of Japan will be making their interest decision and monetary policy statement too. Also on Friday, nonfarm payrolls data is being released in the US, as well as unemployment data for February. The week finishes with unemployment data from Canada being released. If you’re dealing with any of these respective currencies.
If you are planning any transactions next week, these are events that you will want to consider. Contact Currency UK for more information.