Last week’s trend was one of sterling weakness after a sustained period of sterling gaining ground against a lot of the major currencies. The key movements were it losing nearly a cent against the euro and just under one and half cents against the US dollar. Very difficult to predict what will happen this week given the huge flow of data releases and central bank meeting both here and from around the world. The outcome is probably a week of rapid and perhaps even significant movements.
Of all the central bank meetings, the Bank of England meeting on Thursday would seem to be the most predictable as the expectation is very much that there will be no change to interest rates or to the programme of quantitative easing. But this week we also have the release of the key Purchasing Managers Indices (PMI) for manufacturing, construction and services on Monday, Tuesday and Wednesday respectively of these week. The belief is that we will see only slight changes from last month’s figures which should underline the fact that the UK economy is growing and moving forward. On Friday we also have the trade balance figures released.
Therefore a very busy week and if you are looking to buy or sell sterling, please contact your trader asap for live rates, news and to discuss currency-purchasing strategies.