BOE rate hike could be postponed
It was widely anticipated that a rate hike from the Bank of England (BOE) would take place in May. This was due to some very impressive data, particularly average wage growth and unemployment, unemployment currently sitting at a 43yr low.
Unfortunately the favourable data releases failed to continue. We saw a drop in inflation, which I do not consider too much of a concern considering we are well above the 2% target, although this largely due to the weak value of the pound (blame Brexit). Average wage growth is in fact above inflation which some consider to be concerning, if people are making money, but not spending it can be considered unhealthy for the economy.
We saw a big fall in retails sales but this could be attributed to the beat of the east and finally we saw a fall in GDP. It is difficult to still warrant the rate hike form the BOE in May taking these releases into account. The hike was already factored into current levels which is why we saw a significant fall on GBP/EUR.
If you are a Euro buyer my stance remains the same, if the market is in the 1.14s you are in a good position to move.
If you have a currency requirement I will be happy to assist. It is crucial to be in touch with an experienced broker. If you let me know the details of your trade I will endeavour to produce a free trading strategy to suit your individual needs. Have faith knowing you will be dealing with a brokerage in business for over 16yrs, Foreign Currency Direct Plc. We are a no risk entity as we do not speculate on the market and we are registered with the FCA. If you have a currency provider take a minute to send over the rates they offer and I am confident I can demonstrate a significant saving. I can be contacted at email@example.com . (Daniel Johnson) Thank you for reading.