By Nigel Hodges, Currency expert at Currency Solutions
The Pound is set for a busy week with some expecting that this week’s focus on inflation – with the actual CPI inflation figures tomorrow and the quarterly inflation report on Wednesday – could push the Pound higher if inflation once more comes in well above target.
This could provide further momentum to Sterling although much will depend on what the inflation report actually says and also how the subsequent comments from the Bank of England Governor Mervyn King are interpreted. Should the Bank of England concede that inflation is high but that too many other factors prevent an interest rate rise to deal with this, it is also possible that the Pound may lose ground.
Therefore, it is best for anyone needing a transfer involving Sterling to speak with me to help them stay very much on top of how markets react to these events on Tuesday and Wednesday.
The rates won’t just depend on what is happening with UK inflation alone however but will also depend on what is happening in the other respective economies. Trade balance figures and GDP figures from the Eurozone tomorrow will affect the Sterling rate against the Euro whilst the US will be experiencing a wealth of data from Tuesday to Friday which could trigger a lot of volatility against the Dollar falling in key areas such as employment, inflation, and imports and exports. The best tact for this week will be to very much stay on top of how markets are reacting.
For further advice on how to save thousands on your property purchase compared to the bank, protect yourself from currency movements or set up regular mortgage transfers, get in touch with the dedicated Property Secrets currency specialist: Nigel Hodges of Currency Solutions on +44 (0) 207 740 0000 or fill the form
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