The Pound has dropped in value today after another member of the Bank of England has offered some cautious words regarding interest rate hikes in future.
This time it was Bank of England deputy governor, Sir Jon Cunliffe’s who has encouraged a cautious approach towards interest rate changes in the short term future.
The reason this is important is because the Pound had previously been boosted by talk of an interest rate hike as soon as next month, with even Mark Carney, the governor of the Bank of England suggesting that this is a possible to counter to rising inflation levels in the UK which have now hit 3%.
In the wake of Carney’s comments the Pound had climbed to around 2-3 month highs but it has since fallen as the hopes of the rate hike have faded in some cases.
Sir Jon Cunliffe hinted that he may not vote to raise rates next month, as UK growth is still weak and wage growth isn’t keeping up with inflation levels.
Tomorrow morning there will be the release of UK GDP data, which is expected to be released at 9.30am. This data is likely to drive Sterling value, as economic output from the UK is being watched closely as many have their hopes of a rate hike pinned on it.
If you would like to be updated regarding any price movements between the Pound and the Euro, do feel free to get in touch with me as working on a dealing floor allows us to react as soon as the rates move.
If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on jxw@currencies.co.uk and I will endeavour to get back to you as soon as I can.
