Tuesday saw the release of the Trade Balance by the Office of National Statistics, this is a balance between exports and imports of total goods and services in the UK. A positive value shows trade surplus, while a negative value shows trade deficit. The actual deficit revealed was a lot smaller than was initially anticipated at -2.1billion. This produced some volatility for GBP but was not of great significance. If a steady demand in exchange for UK exports had been seen, it would have turned into positive growth in the trade balance, causing further positive movement for GBP.

This coming week is set to produce several significant data releases. On Tuesday the Consumer Price Index (CPI) is released by the Office of National Statistics, it is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. The purchase power of Sterling is dragged down by inflation. The CPI is a key indicator to measure inflation and changes in purchasing trends. Generally, a high reading is seen as positive (or bullish) for the Pound, while a low reading is seen as negative (or Bearish).

The Gross Domestic Product (GDP) released by the Office of National Statistics is a measure of the total value of all goods and services produced by the UK, this is released on Friday. The GDP is considered as a broad measure of the UK economic activity and health. Generally speaking, a rising trend has a positive effect on the Pound, while a falling trend is seen as negative (or bearish).

With these impending releases, an air of uncertainty encapsulates the market, meaning it would be the ideal time to lock in a rate with the Foremost Currency Group through means of a forward contract or placing a stop loss or limit order,   allowing your currency to be traded at a specified rate to protect against any unfavourable movement. Please contact us for further information on how these tools can be implemented.

Security in your currency exchange is paramount in such unpredictable times and this is provided by a forward contract, where you can lock in a rate for up to two years. Those with impending purchases in the Eurozone might look to consider booking a Forward contract with the Foremost Currency Group. By placing a 10% deposit, clients can eliminate the risk of an unstable GBP/EUR rate by locking in a price today for a transaction that will take place in the future, up to maximum of two years.

With all of these factors in mind, it is of utmost importance to speak with your specialist account managers to ensure you know all of the options available to you, ensuring you can make the right decisions when it comes to exchanging your currency, please feel free to contact us for a free consultation.

Even with this downward trend and outlook for that matter there is one word of caution from this trader. The currency markets are extremely volatile and often unpredictable so those with a transfer of Euros to Pounds may not see their requirement continually increasing. It is well documented of the problems currently being seen in Greece and this issue could turn rates around should increased negativity come to light. One of the tools available to private clients and businesses alike, would be a forward contract. This is a contract set up to protect clients from adverse market movements by locking in a rate of exchange today for anything up to two years in the future. All that is required is a 10% deposit to take the contract and protect yourself from future losses whichever way your currency needs to be moved.

Other news last week saw both the Bank of England and European Central Bank keep interest rates on hold for another month at 0.5% and 1% respectively. As expected the market did not react to this in any particular fashion however there is still further uncertainty as to whether the UK will increase its Quantitative Easing program in the months ahead. Many will be looking to the Bank of England minutes released in just over a week to see if the program was discussed in last weeks interest rate meeting, and what affect this could have on future exchange rate movements.

This week sees a limited number of data releases for the UK. Figures to be released will show Februarys GDP estimate and manufacturing production figures.