Buying Euro and Dollar rates of exchange enjoyed a week where politics took a back seat for short while in governing the currency markets.
The Pound recovered against most of its counterparts gradually throughout the week following the flash crash, and by over four cents against the Euro as just one example.
With the major political announcement of a deadline for Article 50 by March having taken place, and with secretive pre-negotiations beginning behind closed doors, barring any surprises, it seems that normality has returned to the markets to some extent with the influence of politics on the value of the Pound falling away.
This weekends news that there is already bickering between the UK and Europe as to which language the negotiations would take place in, French or English? A clear indication to the currency markets that little news of any importance will reach their ears in the short term.
Pre-Brexit vote buying Euro and Dollar rates were mainly governed by news of economic performance released regularly throughout each month both within the UK and in the likes of Europe, the USA and Australia, with the value of each currency swinging based on the positive or negative nature of the news.
The data releases to watch out for next week:
On Monday we have business confidence figures for the powerhouse of the European economy, Germany, to begin the week. Given expectations for improvement here now that the German Government have agreed to bail out Deutche Bank if need be, the Euro should gain back some of the lost ground against the Pound over the past five business days.
Following this, an event which will effect all major pairing with Sterling – GBP/EUR, GBP/USD and GBP/AUD, will be the first look at growth figures for the UK economy in the first full quarter since the Brexit.
The importance of this news cannot be understated. Recessions are gauged on growth for two consecutive quarters being negative. If the UK’s growth in this period stagnates the Pound could face heavy losses akin to the flash crash a few weeks ago.
Current expectations are for growth to fall to 0.3% from 0.7%, but we will not know the truth until Thursday morning.
Given the recent gains, and with a week seemingly without much concrete information to suggest a rise in the value of the Pound, particularly against the Euro, foreign currency buyers may be wise to move sooner rather than later to avoid the risk laden in the marketplace next week.
You can reach me directly over the weekend whilst markets are closed on firstname.lastname@example.org to discuss the options open to you to safeguard your transfer from any potential pitfalls, as well as the make the most of what is available in this current marketplace.
I have never had an issue beating the rates of exchange on offer elsewhere, and these current buying levels can be fixed in place for anyone planning a foreign currency transfer later in the year and wish to avoid the risk of gambling on what levels are available then.
Sterling buyers using Euros or Dollars can also get in contact, and I will discuss the options open to you to ensure that any peaks you are aiming for can be secured should they become available in the timeframe you have to complete your transfer.
You can also reach me using the form below, and I will contact you as soon as I am able to.