Latest currency news - data out this week

This week we have a huge amount of important data releases likely to affect currency rates. If you are sending money abroad in the short or medium term, this week could be particularly volatile so get in touch with us at Currency Index to ensure we can make you aware of any opportunities to buy at preferential rates.

Monday 28th
1000 - Eurozone CPI inflation (Jan)
1330 - Canadian GDP & current account (Q4)

Tuesday 1st
0030 - Australian current account (Q4) & retail sales (Jan)
0330 - Australian interest rate decision
0645 - Swiss GDP (Q4)
0700 - UK Nationwide house price index
0855 - German unemployment rate (Feb)
0930 - UK money supply, individual lending, mortgage approvals & manufacturing inflation
1000 - Eurozone unemployment rate (Jan)
1400 - Canadian interest rate decision
1500 - Speech: Federal Reserve Chairman Ben Bernanke

Wednesday 2nd
0300 - Australian GDP (Q4)
0500 - UK Halifax house price survey (Feb)

Thursday 3rd
0030 - Australian trade balance (Jan)
0815 - Swiss retail sales (Jan)
1000 - Eurozone GDP (Q4) & retail sales (Jan)
1245 - Eurozone interest rate decision

Friday 4th
1330 - US non-farm payrolls & unemployment rate (Feb)

GDP revised down

This morning's revision to Q4 2010 GDP showed a disappointing contraction in the economy of 0.6%. The Pound quickly lost half a cent against both the Euro and US Dollar when the figures were released.

We have seen some revoery this afternoon, but with the European Central Bank poised to potentially increase interest rates next week, we could see Euro strength and worse rates for buying Euros during the first week in March.

Pound falls on Libya problems & weaker retail sales

Sterling is falling across the board today, as a CBI report showed weaker growth in retail sales, and global fears over the Libyan crisis also hit confidence.

Tomorrow morning we have the first revision of the disastrous GDP figures from Q4 last year, and unless the 0.5% contraction is revised to something more positive, we could see further losses for the Pound.

If you are worried about falling exchange rates, Currency Index can provide fixed and guaranteed rates up to 2 years ahead. Contact us for more details.

More policy-makers vote for interest rate rise

Today's Minutes of February's Bank of England interest rate meeting showed that 3 members voted for a rate rise this month, an increase from the 2 members who have been supporting a rise recently.

The Committee is made up of 9 members, with the other 6 voting for interest rates to stay at 0.5%.

The vote shows that there is increasing appetite for interest rate rises, which should help control inflation. Rate rises also tend to help the Pound, resulting in better exchange rates for sending money abroad.

The Pound has gained 0.5c against both the Euro and US Dollar this morning.

UK borrowing falls... but European confidence rises

This morning's UK public borrowing figures showed a surplus of £3.7bn, much better than expected, in a timely boost for the UK economy.

However, much of the surplus is down to January's income tax deadline payments, although discounting these still puts UK borrowing in line to come in under the government's target of £185.5bn for the financial year.

Unfortunately for those of you looking to send funds abroad, particularly in Euros, the strong UK data was followed by rising German consumer confidence, higher Eurozone factory output, and speculation about European interest rate rises. As a result, the Euro has strengthened, making buying Euros more expensive despite the upbeat UK data.

Tomorrow's Bank of England minutes will now be crucial in determining the next direction of sterling's movement.

This week's currency calendar

This week's main news releases are likely to be the Bank of England minutes (Wednesday) and the second reading of UK GDP on Friday. For the latest news and exchange rates, call Currency Index on 0800 043 2623 (+44 1923 725725 from abroad).

Monday 21st
USA Bank Holiday
Overnight - UK Rightmove house price index
0900 - Eurozone services & manufacturing PMI

Tuesday 22nd
0200 - New Zealand inflation expectations
0700 - German GfK consumer confidence
0930 - UK public sector net borrowing (January)
1330 - Canadian retail sales (December)
1500 - US consumer confidence (February)

Wednesday 23rd
0930 - Bank of England minutes
1500 - US home sales (January)

Thursday 24th
0700 - German GDP
1330 - US jobless claims & durable good orders (January)

Friday 25th
Overnight - UK GfK consumer confidence
0930 - UK GDP (Q4 2010)
1330 - USA GDP (Q4 2010)

This week's currency calendar

We are due a lot of very important data this week, particularly on home soil where we have inflation, retail sales, unemployment, and a Bank of England speech on the inflation outlook. These are all potentially of great influence on the short term value of sterling.

For the latest news and rates, please call us on 0800 043 2623 (+44 1923 725725 from overseas).

Monday 14th
1000 - Eurozone industrial production (December)

Tuesday 15th
0030 - Australian interest rate minutes
0700 - German GDP (Q4 2010)
0930 - UK inflation (January)
1000 - Eurozone GDP (Q4 2010), trade balance (December) & ZEW condidence survey
1330 - US retail sales (January)

Wednesday 16th
Overnight - UK consumer confidence
0930 - UK unemployment rate (December)
1030 - Bank of England quarterly inflation report & speech
1330 - US PPI inflation (January)
1415 - US industrial production (January)
1900 - US interest rate minutes
2145 - New Zealand PPI inflation (December)

Thursday 17th
0900 - Eurozone current account (December)
1330 - US jobless claims & CPI inflation (January)
1500 - Eurozone consumer confidence
1530 - Bank of Canada monetary policy report

Friday 18th
0700 - German PPI inflation (January)
0930 - UK retail sales (January)
1200 - Canadian CPI inflation (January)

Double blow for UK plc

The UK economy - and therefore sterling - has suffered a double blow today, as the CBI lowered its growth forecasts for the year to just 1.8%, and the trade gap widened to a new record high of £9.2bn in December.

With the Bank of England unlikely to move interest rates tomorrow, based on the fragility of the recovery, there does not seem to be any good news for the Pound, which has dropped 0.6c against the Euro during the course of today.

This week's economic news

Although we do not expect any major news such as an interest rate change from the Bank of England this week, there is plenty of data out in the UK and Eurozone which is likely to have an effect on exchange rates. With rates for buying Euros and Dollars currently enjoying some improvement, make sure you don't miss out on any opportunities to buy this week.

Contact us at Currency Index for the latest news and live trading rates.

Monday 7th
0030 - Australian retail sales (December)
0930 - Eurozone investor confidence
1100 - German factory orders (December)
2000 - US consumer credit (December)

Tuesday 8th
Overnight - UK BRC retail sales & RICS house price balance
0500 - German retail sales (December)
0645 - Swiss unemployment rate
2330 - Australian consumer confidence

Wednesday 9th
0700 - German trade balance (December)
0930 - UK trade balance (December)
1500 - Speech - US Federal Reserve chariman Bernanke

Thursday 10th
0030 - Australian unemployment rate
0500 - UK GDP estimate (NIESR)
0900 - European Central Bank monthly report
0930 - UK industrial & manufacturing production (December)
1200 - UK interest rate decision
2230 - Speech - Australian RBA governor Stevens

Friday 11th
0700 - German CPI inflation
0930 - UK PPI inflation
1330 - US trade balance (December)
1730 - Speech - European Cental Bank president Trichet

Sterling given lift by services sector

The Pound has enjoyed a strong start to the week, with this morning's PMI Services figures showing a pleasing return to growth in January.

Added to yesterday's industrial figures, the gloom left by last week's disappointing GDP figures has been somewhat lifted.

The Pound is now at its best level against the US Dollar for 3 months, and is also up against the Euro, which has been hit by the yesterday's downgrading of Ireland's credit rating.

Manufacturing sector boosts Pound

This morning's manufacturing inflation data showed activity grew at its fastest pace since 1992 in January - and manufacturing employment also rose at its quickest pace since records began.

Higher manufacturing inflation will theoretically lead to consumer inflation increasing - and therefore increase pressure on the Bank of England to increase interest rates which would be likely to increase the value of sterling.

The Pound rose to its best level against the US Dollar for 11 weeks on the release of the news, and is also up against the Euro.

The moves come despite depressing mortgage approvals and house price data also announced today.