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 summarise the week gone by, as well as highlighting some things to look out for in the coming week.
Last week, was a mixed week for the Pound. Brexit issues weighed the Pound down towards the start of the week, not helped by a breakdown in Northern Ireland government talks or Boris Johnson’s speech. It was also revealed that an interest rate increase is likely to happen sooner than previously thought, maybe as soon as May. The interest rate news and higher-than-expected inflation data gave the Pound a boost as the week went on, with the Pound finishing the week in a position of strength against the US Dollar.
Across the pond, the Dollar had a varied week with volatile trading going on following a mixed bag of economic data releases. The Dollar ended the week in a poor position against both the Pound (as we’ve mentioned) and especially against the Euro; in fact, the Dollar was the weakest it’s been against the Euro since December 2014.
Our friends in Europe had a fairly quiet but positive week overall. Strong GDP numbers were reported which boosted the Euro to those high levels against the US Dollar. Against the Pound, the exchange rate varied quite a lot (relatively speaking), almost coming full circle from Monday to Friday.
Looking forward, it’s a relatively quiet week on the data front compared with recent weeks. The first event of note is on Tuesday, we the Reserve Bank of Australia will release the minutes of their meeting.
On Wednesday, the European Central Bank (ECB) is holding a non-monetary policy meeting, the UK will be assessing the latest inflation data, and the minutes from the Federal Open Market Committee meeting in the US will be released. The action is very thinly spread across the world here, but multiple currencies could be affected all on one day, so be on the lookout on Wednesday if you’re going to be dealing with any of the “big three” – Euros, Dollars, and Pounds.
On Thursday, we start again in Europe with the ECB, where their monetary policy meeting will assess economic activity in Europe. Over in Canada, data on retail sales is being released, which could strengthen the Canadian Dollar if positive.
We end the week in Europe again where pricing data is being released. There’s potential for the Euro to be very volatile this week, given the events and data being released.
If you are planning any transactions next week, these are events that you will want to consider. Contact Currency UK for more information.