We will get to see the latest inflation figures for the Eurozone and the UK this morning, with both being of key importance to the strength of their respective currencies.
Latest Currency News
Theresa May is due to meet with EU leaders in Brussels tonight. Recent comments from Michel Barnier suggested talks were in deadlock so Mrs May could try to move Brexit negotiations along.
Political uncertainty seems set to affect Euro exchange rates, with Catalan independence remaining a factor behind the Euro’s recent drop in value. The Euro has started this week by weakening against the Pound and the US Dollar.
The latest CPI and Retail Sales data came in below expectation. this has cause the US Dollar to fall against the Pound, with the GBP/USD exchange rate now above 1.33.
The Euro has weakened following reports the European Central Bank plans to extend their asset purchase programme.
Some of the key factors that are holding back Sterling, keeping it at the current levels are political uncertainty related to Theresa May’s leadership and a lack of clarity over the plan and outcome of Brexit.
Today proved volatile for the GBP/EUR exchange rate with news on Brexit negotiations the main reason for the rate movement.
With a Brexit update expected, along with key speeches from ECB and Bank of England members the GBP/EUR exchange rate could be set for a volatile day.
With the potential for a US interest rate hike, which could cause movement from AUD to USD and therefore Australian Dollar weakness, is now the best time to sell Australian Dollars?
The Pound to US Dollar exchange rate has been volatile of late. How will tonight’s Fed minutes, as well as CPI data and Retail Sales figures, expected later this week, affect the US Dollar’s value?
With some important data due for the US towards the end of the week, will this help or hinder a rise in interest rates before the end of 2017?