What happened to the Pound yesterday?
We saw the pound fall versus the dollar and quite literally every other currency as yesterdays inflation report slowed to the least in five years last month, adding to pressure on the Bank of England to keep interest rates at record lows. Consumer-price growth slowed to 1.2 percent in the 12 months through September from 1.5 percent in August. That’s the lowest since September 2009 and marks a ninth month below the BOE’s 2 percent target.
Policy makers left their benchmark at 0.5 percent this month, and Governor Mark Carney has said the global inflationary environment is “benign.” That underscores the case for the central bank to keep emergency policy settings as a deterioration in the euro-area economy creates headwinds to the U.K.’s expansion.
Following yesterdays events, today’s speech by Martin Weale (Bank of England policy member) will be of particular interest.
Today we have the UK unemployment figures and average earnings. Markets expect to see a drop in the unemployment alongside a pick up in wage growth which hopefully may see some support for the Pound.
In the US the pace of retail sales growth is likely to have slowed in September. Figures are due out later this afternoon along with Producer Price Data.
Over the past month we have seen the US Dollar surge as the US economy goes from strength to strength. The dollar has moved from 1.70 down to under 1.60 in record pace!
MORNING MARKET RATES:
GBPEUR 1.2578
GBPUSD 1.5920
EURUSD 1.2655
GBPSEK 11.564
GBPAED 5.8448
GBPAUD 1.8232
EURGBP 0.7954
GBPJPY 170.66
GBPTHB 51.784
Please contact me to discuss SPOT pricing, FORWARD pricing or alternatively placing MARKET ORDERS at pre-desired rates.
P.S. WHY NOT TAKE ADVANTAGE OF THE STRONG GBP AND LOOK AT SECURING EUROS ON A FORWARD CONTRACT FOR UP TO 2 YEARS IN ADVANCE. WE ONLY REQUIRE A 3% GBP DEPOSIT TO SECURE A RATE GIVING YOU PEACE OF MIND AGAINST RATE FLUCTUATIONS.
Kris Charalambides
Senior Account Manager
kris@imsfx.co.uk
www.imsfx.co.uk
Direct Dealing Line : 0207 183 7928
Dealing Desk : 0207 183 2790