By Grace Smyth
The latter half of this week has brought a range of key data releases for markets to digest. On Wednesday, the Eurozone’s annual retail sales figures came in stronger than expected, rising by 3.1% year-on-year in June, ahead of the market forecast of 2.6%.
Thursday’s spotlight was on the Bank of England and its widely anticipated interest rate cut. As expected, the Bank lowered the base rate by 25 basis points, following a pause in June. What stood out, however, was the voting breakdown: five of the nine Monetary Policy Committee (MPC) members voted in favour of the cut — with one even initially backing a more aggressive 50 bps cut, while the remaining four voted to keep rates on hold. This “hawkish cut” helped lift the Pound, which spiked by nearly half a cent. As markets absorbed the decision, Sterling held onto its gains, offering some relief for those looking to buy Euros or US Dollars.
Across the Atlantic, US job data showed a rise in unemployment claims, increasing from 218,000 to 226,000, while nonfarm productivity also fell short of expectations. This added further pressure on the Dollar. Bad news for USD holders, but a potential window of opportunity for those exchanging Pounds into Dollars.
Looking Ahead
Today’s economic calendar is relatively quiet, with the only notable release being Canada’s unemployment rate at 12:30. Markets expect a rise from 6.9% to 7.0%. Should the actual figure come in higher than forecast, we could see the Canadian Dollar weaken slightly, potentially benefiting those looking to purchase CAD.
Looking ahead to next week there is plenty of releases to keep an eye on if you have an upcoming currency transfer.
- Australia’s Interest Rate Decision
- UK Unemployment Data
- US CPI Inflation Figures
- UK GDP
- Eurozone GDP
- US PPI
Exchange rates are currently sitting at some of the most favourable levels we’ve seen since the start of the month against both the Euro and the Dollar. If you have a requirement on the horizon, now may be a good time to consider locking in a rate.
As always, our friendly team is here to support you. Get in touch to explore your options and make the most of your international transfers.