Last week we witnessed a turbulent week for Sterling against the single currency with a 4.5% fluctuation in exchange rates on Friday alone. This equated to a difference of an astonishing £7500 when purchasing €200,000. The movements came following the UK election and the hung parliament verdict that came out of it.
The week had begun so well with the Pound opening at 1.1530 racing to a high of 1.1865 by Thursday. This was mainly down to the riots seen in Greece and the increased speculation of a credit rating cut for Portugal, Spain, Italy and Ireland sending the Eurozone into meltdown. The highs seen represented some of the best buying levels seen for 12months as seen in the graph below.
The week ahead promises to be another volatile week as the backlash of the election will still be prominent in the news. The other news of note this week comes in the shape of the Bank of Englands interest rate decision on Monday at midday, and the industrial production figures released on Tuesday at 9:30am. Wednesday sees this months unemployment figures, a release known to cause high volatility depending on the reading. See below for a more detailed report on this weeks data releases.