Forex Weekly Round Up 23 February 2015 – 27 February 2015
UK retail sales fell 0.3% in January from the previous month, according to figures from the Office for National Statistics. The decline in sales follows a 0.2% rise in December 2014. UK High Street shops have been reducing their prices in an effort to attract customers, the figures indicate. Average store prices were 3.1% cheaper than last January.
On Monday Greece missed a deadline to submit their reform proposals for a new deal on its bailout. This was due to late exchanges between Greece and Europe. According to reports the reforms will focus on tackling tax evasion, increasing the minimum wage, free electricity and food stamps.
Tuesday saw the best rate to purchase Euros in eight years!
Bank of England Governor Mark Carney said policy makers can look beyond the inflation slump and won’t wait too long before acting to return price growth to target. He stated that the Bank Of England’s job is to bring inflation back to the 2% inflation target within a reasonable horizon and should “be within the next two years.”
Later in the week, Eurozone finance ministers approved reform proposals submitted by Greece in order to gain an extension of its bailout. The Eurogroup said it had agreed to proceed with national procedures. The measures proposed by Greece include combating tax evasion and tackling the smuggling of fuel and tobacco.
British business investment fell at its sharpest rate in nearly six years late last year, after tumbling global oil prices hit the North Sea petroleum industry, but stronger exports helped make economic growth a bit more balanced.
Gross domestic product between October and December grew by a quarterly 0.5%. That was the slowest growth rate in a year, although there have been signs the economy started 2015 more strongly.
Our prediction for the coming week is continued weakness in the Euro and further weakening in the Dollar before it strengthens again later in the year. 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.