The week ahead is fairly light for economic data from the Eurozone and also contains a number of Bank Holidays for economies within the single currency area.
As many regular readers of this site will be aware, just because there is little data out from the Eurozone this week this does not mean that the Euro will stay flat, there are plenty of other important economic data releases from other areas around the world that will impact the value of the Euro against their respective currency’s exchange rates.
Today we had the release of the Australian budget, which was reasonably positive and suggested that by 2020 Australia expect to finally have their books balanced and to be in surplus for the first time since the global financial crisis, this gave the Australian Dollar a little strength but the fact that interest rates in Australia still are likely to remain on hold this year is still holding back the Australian Dollar from any larger gains.
Overnight tonight we have the RBNZ interest rate decision and rate statement, so any of you looking to carry out an exchange involving New Zeland Dollars may wish to either stay up late or to check out the EUR/NZD rate first thing in the morning when you wake up to check out the outcome.
Thursday is of key importance for anyone that either needs to buy Euros with Pounds or that would like to bring their Euros back into Pounds as we have the Bank of England interest rate decision, inflation report, meeting minutes and the bank Governor Mark Carney also due to deliver a speech.
This is all delivered between 12;00pm BST and 13:30pm BST and investors and speculators alike will be watching for not only news on a change to interest rates, which is now doubtful, but any comments or news on future rate changes will also be key. Currency markets move on speculation as well as fact so should there be a hint at interest rates going up later in the year for the U.K then Sterling should rise in value, the opposite is comments suggest there will not be a rate hike for the rest of the year. I personally feel that the rate hike has been delayed due to poor data, but that poor data has been mainly down to bad weather, now that things have improved I would not be surprised to see a fairly positive release on Thursday and the Pound to gain value.
EUR/USD is the most traded currency pairing in the world and we have seen a large flow of money out of the Euro into the Dollar recently, and this flow of money has been one of the reasons that we have seen Euro weakness of the past week or so. The Dollar is indeed on the charge at present and the Dollar index suggests it may continue as the week progresses. We have inflation and Jobless claims figures from the U.S on Thursday so if your Euro interest is Dollar related then Thursday afternoon will be key for you.
Friday afternoon we have Canadian unemployment for those of you with an interest in EUR/CAD, and this is followed by Mario Draghi, head of the European Central Bank at 14:15pm BST which could round off the week for the Euro with a little volatility.
With all this news going on around the world at present this goes to show that if you have a large currency exchange to make involving the Euroyou need to monitor the markets closely and you need to be in the position to act quickly if there is a spike in your favour.
If you do not have the time to monitor the markets or your current broker is not keeping you up to date with the latest movements and you would like a better service then feel free to contact me directly, and I can add you to my current client list. Having been working on this trading floor for over 10 years I pride myself on giving clients up to date market information to help them time their exchange well, and when it comes to booking out their rate it is extremely rare that we do not get our clients a much better rate than they can achieve anywhere else in the market.
If you would like to speak with me (Daniel Wright) the creator of this site then feel free to email me with a description of what you need to do and I will be happy to call you personally or reply with an overview of our services and my thoughts on your position. You can email me directly on firstname.lastname@example.org and I look forward to speaking with you.