This week’s Bank of England Inflation Report could cause problems for Sterling; Euro rate steady while US Dollar rate remains at its cheapest since February
Change last week:
GBP against: Change: Difference on sending £100,000:
EUR -0.1% £100 more expensive
USD +0.3% £300 cheaper
CAD +1.0% £1,000 cheaper
NZD +0.9% £900 cheaper
AUD No change
ZAR -0.7% £700 more expensive
CHF +0.6% £600 cheaper
Last week saw the US Dollar rate increase further, with Friday’s weak American employment data helping to keep the USD relatively cheap. As expected, there were no movements in interest rate from the Bank of England or the European Central Bank last week, so Euro exchange rates held steady.
This week, the Bank of England are due to publish their quarterly inflation report on Wednesday morning. The inflation outlook is an important driver of interest rates and therefore the value of sterling – so any more signs of interest rates remaining low into 2011 could spell trouble for the Pound.
If you are worried about how the inflation report could affect your own exchange rate, do remember that you can fix a rate up to 2 years ahead, using a small deposit. Contact an FSA-regulated currency broker for more details.
For those of you looking at sending Euros abroad, both the ECB’s monthly report on Thursday and GDP on Friday could also have an impact on rates.
The week’s scheduled data releases are as follows:
Tuesday 10th
0700 - German CPI inflation
0930 - UK trade balance
1915 - US interest rate decision
Wednesday 11th
0930 - UK unemployment rate
1030 - Bank of England quarterly inflation report
1330 - US trade balance
1900 - US monthly budget statement
Thursday 12th
0230 - Australian unemployment rate
0900 - European Central Bank monthly report
2345 - New Zealand retail sales
Friday 13th
0700 - German GDP
1000 - Eurozone GDP
1330 - US CPI inflation & retail sales
0700 - German CPI inflation
0930 - UK trade balance
1915 - US interest rate decision
Wednesday 11th
0930 - UK unemployment rate
1030 - Bank of England quarterly inflation report
1330 - US trade balance
1900 - US monthly budget statement
Thursday 12th
0230 - Australian unemployment rate
0900 - European Central Bank monthly report
2345 - New Zealand retail sales
Friday 13th
0700 - German GDP
1000 - Eurozone GDP
1330 - US CPI inflation & retail sales
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