Despite the UK manufacturing sector growing at its slowest rate for 14 months in August Sterling still managed to climb against the U.S. dollar today. It seems the markets are starting to price in the European Central Bank introducing another round of monetary stimulus to help the struggling Eurozone, which in turn boosted the pounds value against a number of its major counterparts.
The GBP/USD exchange rates rose from 1.6590 to a high of $1.6644 during trading today but with the U.S. markets closed for Labor Day the gains made by the pound could be quickly wiped out when the markets reopen tomorrow.
For a free currency consultation click here.
What can we expect this week?
We could be set for a volatile few days for Sterling crosses as this week sees a number of key economic data releases from the UK and U.S. From the UK we have the construction and house price figures as well as the latest Bank of England rate decision and statement.
All eyes will be focusing on the Bank of England announcement on Thursday as investors and market players look for clues about when the central bank will raise interest rates, especially as two of the nine committee members voted to increase rates last month.
From the U.S we will see the latest manufacturing, trade balance, unemployment and non-farm payroll numbers. All have the potential to swing exchange rates and those of you selling dollars will be hoping the U.S economy continues its recent upturn to drive down GBP/USD exchange rates.
I will of course keep you up to data with how the week unfolds. In the meantime, if you are looking to buy or sell dollars in the coming months and want to make the most from your currency transfer contact me today for a free, no-obligation consultation.
For information on the different types of currency contracts or to find out what rates of exchange I can offer, use the link below to complete the contact form or call me directly on 0044 (0) 1442 892 065.
Click here to complete the contact form.
