Forex Weekly Round Up 4/4/16 – 8/4/16

On Monday unemployment figures were released for February across the Eurozone. They came out at 10.3%, which shows a slight contraction in the unemployment rate in the Eurozone.

Britain’s economy appears to have slowed since the start of this year, as worries about the global economy; government spending cuts and a vote on staying in the European Union has had a significant impact. Britain’s economy grew 2.3% last year but government forecasters are expecting growth to slow to 2.0% in 2016. These factors have all caused the pound to remain weak across the board.

An unofficial poll released on Wednesday indicated a decline in support for the Pro EU parties, indicating quite close race. Thus causing investors to sell the pound as an exit from the Eurozone after the referendum is likely to cause significant economic uncertainty until trade terms with Europe are renegotiated.

Yesterday European Central Bank President Mario Draghi said he would keep all options on the table in its fight against deflation in the Eurozone, including sinking interest rates even further into negative territory over the next few months.

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Here are the exchange rates taken at 14:59 today. Please note that all conversions are based on interbank rates without any spreads and should be used only as a guide. For live ‘spot’ and ‘forward’ prices please feel free to drop us a line.

GBP/USD 1.4085
GBP/EUR 1.2375
USD/EUR 0.8786