By Tom Arnold
The last week has seen some really good rates for buying both Euros and US Dollars, with the Pound enjoying highs not seen since the end of 2022. Bank of England interest rate rises to help combat soaring UK inflation have made the Pound a more attractive investment for yield-seeking investors and the Pound has profited as a result.
We have a busy week ahead with a few key economic releases from the major zones. At home we have UK unemployment on Tuesday and then a speech from the governor of the Bank of England on Wednesday. In the Euro zone we have GDP on Tuesday and inflation on Wednesday, and then in the US retail sales on Tuesday and jobless claims on Thursday.
Monday
EU Industrial Production
US Fed Member Speeches
Tuesday
UK Unemployment Rate
EU GDP
US Retail Sales
US Industrial Production
Wednesday
EU CPI Inflation
Bank of England Governor Bailey Speech
Thursday
Australian Unemployment Rate
Bank of England Monetary Policy Hearing
US Jobless Claims
UK Consumer Confidence
Friday
German PPI
Canadian Retail Sales
With the recent strength for the Pound supported largely by high inflation and the associated interest rate rises, it will be interesting to see how it holds up in the face of UK unemployment numbers – a negative number could certainly dent the Pound’s future hopes. UK interest rate policy over the coming months, with almost certainly be a key part of the BoE governor’s speech on Wednesday so those with Sterling in hand should be wary of a reality check here too.