There were some important data releases, as well as comments today regarding the UK economy which could impact how the Pound performs in future.
The monthly inflation figure was released today and as expected the figure came out at 3%. The Pound remained relatively unchanged off the back of this release as it was expected, although I do think that if it was higher than 3% we would have seen Sterling climb, due to increased hopes of an interest rate hike.
The Pound to Euro rate fell over three-quarters of a cent against the Euro throughout the day though, as comments from the governor of the Bank of England disappointed the markets.
Many had expected to see a rate hike from the BoE early next month, and although this hasn’t been completely written off those hopes were dented today after Carney wasn’t as bullish in his comments as many had hoped.
An interest rate hike is usually considered a positive by the markets, so you can understand why Sterling dropped in the wake of his comments.
Later this week on Thursday there will be another release, although perhaps it won’t be watched quite as closely. The release will detail Retail Sales figures and I do expect to see any deviations from the expected figure to result in Sterling weakness.
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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.