Last Friday saw the Pound gain against the Euro due to positive Manufacturing figures. The increase in rate was also helped by Germany posting a weaker than expected Trade Balance. Both of these factors kept the pounds to euros exchange rate well in to the 1.2800 for most of the day.
Due to a very quiet day in the UK, the Lloyd s Employment Confidence this morning could be of more significance than usual following on from last months figures indicating that inflation expectations have weakened off to the lowest level since this time 3 years ago.
Tomorrow’s Consumer Price Index is likely to influence a large movement for the Pound, expected to come in weaker than the previous year. 2% is the target rate for a good economy but is set to come in around 0.7%. Could this see the Pound fall or present a opportunity to Buy Euros at better rates?
This afternoon’s US Economy Outlook, is not of high interest to the economists today and therefore the positive data for the US today is unlikely to see the Dollar strengthen, although this morning has already seen a near 50 point drop which is now sitting at around 1.5100