Euro starts to pick back up …but the Pound doesn’t follow

Currency movements continue to be dominated by the talk and data surrounding how fast economies seem to be growing or slowing. Last week saw a frenzy over speculation of a double dip recession with increasing signs of slowing economies particularly in the US and UK. This caused a boost in safe haven currencies but the new week is starting out on a different foot with the Yen, Swiss Franc and US Dollar sliding down from their highs. The key piece of information which has caused a turn in the rates between this week and last was US jobless figures on Friday. These were much better than expected with employment falling by 54,000 – much lower than the anticipated 100,000. This seems to have given some confidence back to investors that a double dip may be avoidable with riskier currencies such as the Euro starting to strengthen. The Euro however was a little tarnished this morning with a surprise drop in investor confidence in the Euro-zone. It is expected however that the Euro will experience some strong data for three consecutive days beginning tomorrow and all coming from Germany in areas such as industrial production. If you have an upcoming transfer involving the Euro, it is advisable to speak with a broker about the effect that this week’s economic events may have on your transfer and which trading option will be best. It’s possible to book your transfer well in advance to take advantage of any preferential rates. The Pound is starting the week in bad form. Despite some very strong news on the UK export market this morning, Sterling doesn’t seem to be able to shake off the hangover from last week’s poor data releases. However it is only Monday and there are significant UK data releases every single working day this week and the Bank of England rate decision on Wednesday. If you are transferring Pounds into another currency, speak with a broker about how to protect yourself from the current Sterling weakness and volatility.