This week in the markets:
The pound to euro exchange rate struggled last week and news published this morning of slipping UK property prices according to mortgage lender Nationwide Building Society, coupled with a backdrop of stubborn inflation and decreasing confidence in the government’s ability to grow the UK economy is doing little to inspire pound sterling investment.
Moreover, in manufacturing, Eurozone factory output growth was reported at a 41-month high in August whilst UK manufacturing sector shrank again last month, as factories were hit by weaker demand at home and abroad, adding further downward pressure on the pound to euro rate
In more positive news for pound to dollar converters, markets are pricing in an anticipated Federal Reserve rate cut in a couple of weeks, which is weakening the dollar against the pound.
Key events for your diary this week:
- Eurozone inflation data is due out on Tuesday morning and this is likely to provide the European Central bank with data to decide what to do with monetary policy going forward.
- Thursday could be a busy day for global exchange rates with both Eurozone Retail Sales data in the morning. This will be followed by Initial Jobless Claims for the US as well as other US jobs data.
If your plans require you to send money overseas and you’d like to know more about how the latest news could impact your currency conversions, speak to a Lumon currency specialist today. Call +44 (0)204 506 5672 to explore your options.
