The Pound has begun the week strongly as at the time of writing the currency is up against all major currency pairs, and this pattern follows on from last week where the Pound continued it’s recovery from the lows of late last year.
When compared with the Euro, the Pound has gained in excess of 2 cents since hitting it’s February low of 1.1556 which can equate to a large sum of money when exchanging Pounds into Euros for a property purchase in Europe for example. It will be interesting to see how the GBP/EUR rate performs around this level as the week goes on, as twice in recent time the pair have hit 1.18 and then tailed off as investors appear to believe the Pound is overvalued at these levels.
There could be data releases that help the Pound post further gains against the Euro as well as other currencies this week, potentially aiding the currency to break through upper resistance levels such as 1.18 between GBP/EUR.
On Tuesday at 9.30am there will be Inflation data released for January, with analysts expecting a rise of 1.9% which is up from the previous figure of 1.6%. As inflation is rising globally and the Pound has lost a fair share of it’s value over the past year I think the Bank of England will be willing to allow for quite a sharp increase in UK inflation but expect any dramatic increases to boost the Pound’s value as too much of a sharp increase would likely lead to an interest rate hike in order to manage it.
There are other news releases this week which could impact the Pounds value versus other major currencies, and feel free to get in touch if you wish to be kept up to date regarding these.
If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well worth your time getting in contact with me on firstname.lastname@example.org in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.
You can also get in touch by phone by calling 01494 787 478 and asking reception to speak to Joe.