by Damian -
Today we have the Spanish and German CPI figures for September. Both are likely to show falls in annual headline inflation rates from August due primarily to lower energy prices.
In the EU Draghi has spoken about the euro stating the euro area looks like devaluation.
While the European Central Bank president says the exchange rate isn’t a policy target, officials aren’t secretive about their approval of the currency’s 9 percent slide. The depreciation increases the cost of imports and boosts exporters’ competitiveness, aiding the effort to revive inflation that data tomorrow will probably show is at the weakest since 2009.
Pound euro is currently sitting at 2.5 year high therefore is a great time to look at trading and securing forwards.
This week is a very busy one for the US. While the payrolls report later in the week will get more market attention today’s household spending report will also be of interest as it will help in gauging the likely contribution of consumer spending to Q3 GDP growth.
In advance of tomorrows UK GDP revisions, money data for September will likely show some signs of activity moderating in Q3.
MORNING MARKET RATES:
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P.S. WHY NOT TAKE ADVANTAGE OF THE STRONG GBP AND LOOK AT SECURING EUROS ON A FORWARD CONTRACT FOR UP TO 2 YEARS IN ADVANCE. WE ONLY REQUIRE A 3% GBP DEPOSIT TO SECURE A RATE GIVING YOU PEACE OF MIND AGAINST RATE FLUCTUATIONS.