This week's exchange rate news

The Pound followed recent trends last week with a particularly volatile few days - finishing up against the Euro and US Dollar, but down against the Canadian, New Zealand and Australian Dollars...

Caution is still the key, with any negative economic news continuing to hamper sterling's progress - a worry if you are looking to buy property overseas.

Economic news of note last week included the CBI retail sales figures, which reported a shock increase for retailers in April - and conversely Wednesday's mortgage data which showed a decrease in new mortgage lending during March, dealing a blow to the idea that the housing market has reached the bottom.

Thursday's Nationwide survey showing prices dropping still further did little to help.

Although we had a bank holiday in the UK yesterday, German retail sales data for March showed a decline, which saw the Euro sold off, resulting in the best Euro exchange rates for 2 weeks.

Anyone sending money to the USA will also be pleasantly surprised to see the US Dollar rate back up to nearly 1.50 as markets return to riskier currencies, despite stronger than expected US home sales figures on Monday.

For the rest of this week, UK factory prices on Tuesday will be of interest, as will European retail sales on Wednesday morning. The European and UK central banks publish their monthly interest rate decisions on Thursday.

If you are emigrating and need to send money to Australia in the coming weeks or months, overnight Tuesday saw Australian interest rates decided. A cut in rates could have improved the AUD exchange rate, but the RBA again kept rates on hold.

Australian retail sales are out overnight on Wednesday, and employment figures overnight on Thursday - so this week could give some clues as to the likely direction of the Australian Dollar for the next few weeks.

Picture by Martin Kingsley