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, it was a fairly short and quiet week due to there being a bank holiday weekend for Easter. Exchange rates were fairly choppy across the board. For the Pound, talk of more interest rate increases coming this year gave the UK currency some support. It dipped temporarily in the middle of the week but bounced back based on hopes that an Irish border solution would be found soon. Disappointing data releases weakened the Pound slightly across its major currency rivals as the week went on.
Across the pond, the US Dollar began the week in a rather weak position, and the expulsion of a number of Russian diplomats across the world weakened the Dollar due to the increased market risk this caused. As the week went on, positive import and export data for the US economy gave the Dollar a boost. On the last day before the bank holiday, a mix of positive and negative economic data releases made the Dollar wobble.
The Euro made solid gains early on in the week due to positive economic data from France and the Netherlands. Also, talk of an interest rate hike by the European Central Bank gave the currency more support. However, the Euro fell as the weak went on, mainly due to the Dollar strengthening slightly.
Looking forward, it’s another fairly quiet week due to the bank holiday Monday in many countries around the world. As a result, the action doesn’t really start until Tuesday, when the Reserve Bank of Australia will be announcing their interest rate decision. They are expected to keep it unchanged, but no one can know for sure until it happens.
On Wednesday, we’ll see European pricing data, followed by a report on Thursday from the European Central Bank’s (ECB) monetary policy meeting. Take note of these events if you’re going to be dealing with Euros in the next week or so.
We end the week in North America, with earnings data and the all-important Nonfarm payrolls data from the US, as well as employment data from Canada for the month of March.
If you are planning any transactions next week, these are events that you will want to consider. Contact Currency UK for more information.