The main talking point last week in a shortened trading week due to the UK bank holiday actually came for the US when Non Farm Payroll numbers dissapointed and were released at 160,000 new 40,000 down from the prediction of 200,000. For clients trading EURUSD exchange rates rallied up to 1.1615, its highest since August 2015.
As EURUSD is the most traded currency pair across the globe, when the US dollar weakens the Euro tends to strengthen and vice versa. This is why the Euro therefore strengthen against most of the major currencies Friday including sterling.
This week eyes turn back to the EU referendum and how both campaign parties try to sway voters. In recent weeks I feel the incampaign had gained momentum and thats why GBPEUR reached 1.29. However its only a matter of time in my opinion that volitilty increases and therfore exchange rates begin to fall.
I still keep to my prediction when UK Prime Minisiter David Cameron announced the UK would hold a referendum, come June 23rd when Brits head to the polling stations GBPEUR exchange rates will be fluctuating between 1.17-1.19.
Economic data releases this week
UK Industrial and Manufacturing data is released at 8.30am Wednesday. Last month Manufacturing fell to a 3 year low. No doubt this is due to the EU referendum therefore I expect the figure to fall again leading to sterling weakness.
Thursday is the latest Interest Rate decision for the UK. The vote is expected to be unchanged at 9-0. Shortly after governor of the Bank Of England Mark Carney, addresses the press and this is normally a volitile period for Sterling exchange rates. Mark Carney has already expressed he wants the UK to remain part of the EU therefore I wouldnt be surprised to see sterling weakness due to dovish comments in regards to the negative impact a ‘Brexit’ will have on the UK economy.
Friday the Eurozone release a basket of data releases. 8.30am the powerhouse of Europe Germany, release their latest inflation and GDP numbers. Inflation numbers are expected to fall which would lead to Euro weakness. Later in the day Europe releases the quarterly and yearly GDP numbers. Keep a close eye on the German release in the morning as this could give an indication to the later release.
If you are looking to buy or sell Euros this year (especially before June 23rd), the currency company I work for enables me to achieve clients up to 5% better exchange rates than the high street banks and other brokerages. I specialise in property purchases and sales. Therefore if you are buying or selling a property this year and want to save money by achieving the best possible exchange rates but also want help in timing your transfer, get in touch by emailing me on email@example.com.
The more information you provide me, the more information I can provide you. Below is a list of what I require: your name, currency pair, brief description of requirement, amount, budget, timescales, telephone number and convenient time to call.
Alternatively if you would like to discuss your requirements over the phone call me Monday morning on 01494-787478 and ask to be put through to Dayle Littlejohn.