Euro Pound Exchange Rate Report – 13th September 2010
September 13, 2010 Leave a comment
Another volatile week saw Sterling decline on Monday, dropping to an interbank low of 1.1920, before recovering as high as 1.2192 later in the week. This means a 2.3% increase between high and low and effectively gave an extra €2,720 on a transfer of £100,000.
Looking to the week ahead, the first key event for the UK will be the CPI inflation figures, which forecasts suggest will show annual inflation of 2.9%. This means the cost of goods and services will be 2.9% higher than August of last year. This figure is closer in line with the government’s target of 2%, than July’s figure, which means inflation is occurring at a decreased rate. In order to curb inflation, the Bank of England could look to increase interest rates which would strengthen the GBP and increase its exchange rate against other currencies.
Also, on Tuesday, German ZEW Index is published. If this shows positive economic sentiment, then the EUR shall strengthen and its paired exchange rate with GBP will decline.
On Wednesday, the UK Unemployment rates will be published and when compared to rates released over previous months, a decrease in unemployment is likely. This supports arguments that the economic growth of the UK is increasing, with the Pound regaining some of its strength, and, therefore, any of its exchange rates will increase.
These points raised emphasise the importance and necessity to remain in close contact with your currency broker, as, evidently the market will remain volatile as the week progresses. The smallest change in exchange rates can lead to huge differences in transactions, so utilising the knowledge and professionalism of a currency broker can help to save you thousands of Pounds.
If you have yet to open a trading facility to gain access to commercial rates of exchange click here to open an exchange rate account today.