We saw a number of disappointing economic data releases yesterday for the UK economy and this saw Pound vs Euro exchange rates fall after having a very good run in recent weeks.
Both UK Industrial & Manufacturing data fell much lower than expected and an increase in the UK’s trade deficit to £13.4bn caused the Pound to struggle against the single currency.
The Bank of England kept interest rates on hold yesterday and governor Mark Carney announced that he has cut the growth forecast for 2% to 1.9%. This was due in part to the problems with inflation which has been forecast to hit 2.8% whilst average earnings will only reach 2%.
One of the main responsibilities for the central bank is to control inflation and if inflation continues to rise there is an argument to bring an interest rate hike forward.
However, as far as I’m concerned I don’t think we’ll see an interest rate hike coming anytime in the near future.
Although yesterday revealed some economic problems in the UK overall the Pound did not dip by a huge amount vs the Euro which signals to me that the UK and in particular Sterling is being moved by what is happening politically at the moment.
We end this week with US inflation data due out this afternoon and if we see some good news for the US this could result in Dollar strength which typically results in Euro weakness.
Therefore, if you’re considering a currency purchase in the next few days keep a close eye on what happens this afternoon.
Having worked in the foreign exchange industry since 2003 for one of the UK’s leading currency brokers I am confident of being able to offer you bank beating exchange rates as well as helping you with various options typically not offered by your bank.
For further information or a free quote when buying or selling Euros then contact me directly for a free quote then contact me directly and I look forward to hearing from you.
Tom Holian firstname.lastname@example.org