Forex Weekly Round Up 2 March 2015 – 6 March 2015

Eurozone unemployment fell to a 33-month low, indicating the European labour market is improving. The unemployment rate fell to 11.2% in January, down from 11.3% in December.

The European Central Bank has raised this year’s Eurozone growth forecast to 1.5% from 1%.

Growth in the British construction industry improved to a 4-month high last month suggesting Britain’s economy started 2015 strongly. However, building companies hired staff at the lowest rate in over one year. The UK construction purchasing managers’ index rose to 60.1 reaching its highest level since October 2014.

The US the ADP jobs report was below expectations. The Private sector created 212,000 jobs in February, lower than the forecasted 220,000.

UK interest rates have been kept unchanged again by the Bank of England; they have now been at their record low of 0.5% for six years. The rate was first cut to 0.5% in March 2009.

Our prediction for the coming week is continued weakness in the Euro and strengthening of the Dollar. Euro weakness is good for those who are buying Euros with Pounds and Dollar strength is better for those exchanging Dollars into Pounds. The markets are liquid and volatile, however, so we may see movements outside this pattern.

Those looking to buy Dollars and sell Euros should consider a Forward Contract to hedge against adverse movements in the long term. Please contact us to get more information on how we can help you do this.