Pound/Euro, Pound/Dollar, and what week ahead has in store for Sterling

Good morning. Pound/Euro rates remain largely flat, with the pair stuck between €1.12 and €1.13 as it has been for some time. Whilst economic data from the UK continues to be quite good, it’s not doing much to strengthen the Pound. With markets waiting for more developments with regards to the direction Brexit talks will take, it’s keeping the Pound in check and this means GBP/EUR rates haven’t moved an awful lot over the last month. I think that rate will go up later this year once progress has been made with trade talks, but while the uncertainty over what a trade deal will look like remains, I can’t see where any gains are going to come from in the short to medium term.

Pound/Dollar rates had risen last week, briefly hitting $1.36 which is the highest we’ve seen Pound/Dollar rate since the EU referendum weakened the Pound. Rates have started to drop back a little now however, and this is because it’s likely that the USA will raise interest rates again several times this year, which is helping to strengthen the US Dollar.

Below is a brief outline of the other data releases for the week ahead that I think will affect Sterling exchange rates. If you need to make a currency transfer and would like a quick quote, or simply discuss which way the market is moving with an expert currency broker, make a free enquiry today.

This week’s data releases that could affect the Pound

Monday 8th January 2018We’ve already had UK House price data this morning which was lower than expected. This pushed Sterling lower but not by much. We also had EU Retail Sales and confidence measures a few minutes ago. This data was better than expected, giving the Euro a little strength.  Later today we may see some movement in GBP/USD rates after several FED members give speeches.

Tuesday 9th January 2018There’s nothing much of interest from the UK today, so Sterling exchange rates will be driven by external factors. Germany, the EU’s largest economy, releases trade balance data that might affect the Euros. GBP/EUR may also move today on EU unemployment data. 

Wednesday 10th January 2018Today is an important one for the Pound, as at 09:30am we’ll see the latest Manufacturing and Industrial production numbers, along with trade balance figures. These releases often move the Pound if the results differ from what’s expected. We’ll also see a UK GDP estimate at 1pm, and this also has the potential to affect Sterling.

Thursday 11th January 2018Another quiet day from the UK so currency prices will take direction from elsewhere. The EU has it’s Industrial production numbers at 10am today, which might affect Pound/Euro. Over in the USA we’ll see Jobless numbers and the latest inflation figures.

Friday 12th January 2018We’re bereft of anything other than data from the United States today, and the US figures include: Retail Sales, Inflation Numbers and a monthly budget statement, all of which has the potential to affect the Pound/Dollar exchange rate. 

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