Similarly to last week, currency movements in all major currencies this week are likely to be dominated by economic news coming out of the USA.
There is a continuing trend of poor US data bringing down currencies seen as risky – particularly the Euro, and pushing up currencies seen as ‘safe’ including the Japanese Yen and US Dollar itself; news from the US is continuing to be seen as a key indicator of the global situation in general which means that negative data from the nation is ironically not bringing down the Dollar.
US data this week will therefore be important with a large amount of news releases from consumer confidence on Tuesday, mortgage applications on Wednesday, jobless claims on Thursday and earnings data on Friday. For those purchasing property in the Euro-zone the single currency may continue to weaken. It is possible to speak with a currency broker and set a realistic target rate of exchange so that you can be informed when this is achieved.
Although negative US Dollar news is draining the Euro, there may be some glimmer of positive news from Europe itself. Lower jobless rates and positive manufacturing data from Germany may help to give the Euro some strength although whether this will be enough to sway risk-averse investors at present remains to be seen. Another ‘safe’ currency, the Swiss Franc, is also at significant highs against the Euro – for anyone buying investments in Europe the currency is at the desired weak level.
The Pound is experiencing volatility as the hype around the slowing UK recovery grows. Sterling has begun the week by dropping against the US Dollar and Euro following a report by the National Federation of Housing which suggests that UK home owners will experience another four years of negative equity. Manufacturing and construction data on Wednesday and Thursday may bring more movement.
For further advice or 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 by clicking HERE to leave an enquiry.
