Politicians in the UK return to work today as the summer recess period is now over. The US and Canadian markets are once again open also after yesterday’s labour day bank holiday so the markets should be firing on all cylinders today.
Yesterday the Pound was sold off against all major currencies, and fell as low as the 1.1060’s after a disappointing data release yesterday morning. Manufacturing PMI was released for the month of August. The figure measures business conditions in the sector and the figure released demonstrated a drop from the previous months figure. A higher reading was expected and this has resulted in a weaker Pound, and should this trend continue I wouldn’t be surprised to see GBP/EUR fall below 1.10 once again.
Later this morning there will be a PMI reading for the Construction sector, and another slight drop on the previous months figure is expected to be released. Another drop from expectations would likely apply increased pressure on Sterling, especially in the current climate.
In the afternoon there will be a speech from the governor of the Bank of England, Mark Carney. He will be alongside other key members of the BoE and he will appear before lawmakers to discuss the August Inflation Report. His term at the Bank is likely to be bought up as there have been rumours that he will extend his term, although these rumours were squashed by a spokesperson yesterday. There could be movement for GBP exchange rates because of this topic so it’s worth being aware of if you’re planning a currency exchange.
Do feel free to get in touch if you wish to be updated in the event of a major market movement.
If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on email@example.com and I will endeavour to get back to you as soon as I can.