Unexpectedly poor economic sentiment figures from the Eurozone helped to strengthen the pound yesterday, briefly hitting a high against the euro at noon. It was also helped by wage data showing that earnings have seemingly returned to pre-economic crisis levels.
Today is a quiet day for European data, so we can expect the markets to continue to absorb yesterday’s developments. German economic sentiment dropped by 18 points and Eurozone figures, which had been expected to rise, dropped by 15.
The dollar has started the day strong, as the markets looking forward to today’s FOMC meeting release. We will also see data on building permits and housing data.
As yesterday’s releases showed, forecasts are often far from accurate, so don’t risk your money trying to second-guess them. Lock in today’s exchange rate with a forward contract for up to twelve months to completely safeguard your transfers. Call your Personal Trader on 020 7898 0541 to get started.
