Its a busy day for economic data today, as the Bank of England and European Central bank are both set to release their latest interest rate decisions. No change is expected, however the speech given by President Mario Draghi shortly after is the event to keep an eye on.
The asset purchase program known as quantitative easing is set to finish at the end of December and interest rates are foretasted to remain on hold until at least mid 2019. If Draghi speech confirms this once more, I expect the euro to remain buoyant against sterling. However reports yesterday suggested that growth forecasts could be revised down due to global tensions in the form of trade wars. If this is the case, I expect the euro will lose value against sterling.
It was only earlier in the week Mr Carney confirmed he will stay on as Governor until 2020, which is a positive for the pound as Carney is seen as a well respected figure within the financial world. The rise in wage growth is a positive for the UK and supports the rate hike last month. However with Carney not set to speak until tomorrow, I expect the BoE decision to be a non event.
If you are buying or selling euros this week, month or year and I have not covered the currency pair you are trading, I would recommend emailing me with the currency pair (EURUSD, EURGBP, EURAUD) and the reason for the transfer (company goods, property purchase) and I will response with my forecast and the options available to you [email protected]. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.
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