Sterling continues to suffer from low investor confidence and poor post Brexit data. A stormy week to come…
The Pound saw another big drop against most major currencies at close of of markets on Friday afternoon as traders moved there money in to more appealing and more importantly stable currencies. This saw the Pound drop to levels close to the lows following the Referendum vote.
Today is a fairly quiet date in terms of data as Europe takes a bank holiday (Assumption day). Though tomorrow is anything but quiet for the pound and may prove stormy for exchange rates as UK Inflation data is released at 10am GMT along with Price index data at 9.30am GMT.
Following the interest rate decision and poor manufacturing data I believe this data will have a negative effect on the Pound and will adversely affect currency pairings such as GBPEURO and GBPUSD pushing them lower.
The next big data release this week will be Thursday with Retail sales figures for July and Price index data for Europe following shortly after. Again I believe a slow down in retail is to be expected and may see further negativity for the pound. If however European Data comes in worse than expected the Pound may gain some lost ground and would present an opportunity for Euro buyers.
So in summary my weekly outlook would be for further Sterling negativity followed by a possible window to buy Euros on Thursday dependent on data. If you have a holiday in the next week or so it may be the time to act now to avoid further disappointment.
Should you have any questions concerning your holiday and currency requirements please email me at firstname.lastname@example.org and I will be more than happy to help.
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