Your Currency and Foreign Exchange Round-Up – 06/04/18

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 the second short week due to the Easter Bank Holiday in many countries around the world. The Pound came out of the Bank Holiday in a position of strength and solid manufacturing data continued that into the week. Certain sectors, however, reported a slowdown due to the Beast from the East last month. Overall, the Pound grew stronger against the Euro and was very choppy against the Dollar, but levelled out.

Across the Pond, the Dollar enjoyed a strong end to the month of March, supported by the lowest initial jobless claims since January 1973. However, the Nonfarm payrolls data on Friday came in significantly lower than expected, giving mixed messages about the US labour market. The headline for the week was the potential ‘trade war’ with China, as the White House announced that a tariff will be placed on Chinese goods.

China have pledged to retaliate “to the end, at any cost”. We’ll have to wait and see how the story unfolds in the coming weeks.

Europe was fairly uneventful compared with its major currency rivals of the UK and US. Disappointing German retail sales data at the start of the week delivered a minor blow to the strength of the Euro. The Euro was very choppy against the US Dollar over the week, with the lowest Eurozone unemployment rate since December 2008 and trade fears over in the US gave the Euro momentary respite, but overall the Euro weakened against the Dollar.

Looking forward, it’s a relatively quiet week on the economic data front, with only four events with the potential to largely affect exchange rates. The first being on Wednesday, where the Governor of the Reserve Bank of Australia (RBA), Philip Lowe, is giving a speech.

Also on Wednesday, over in the US, pricing data is due to be released. Both events have the potential to affect their respective Dollars (Australian and US).

We’re in Europe for the remainder of the week, with Thursday seeing the European Central Bank (ECB) monetary policy meeting, and Friday seeing German pricing data for March. Germany being the powerhouse of the EU means that economic and political events there will likely affect the Euro as a whole, so it’s always worth keeping an eye on Germany if you’re dealing with Euros.

If you are planning any transactions next week, these are events that you will want to consider. Contact Currency UK for more information.