By Luke Dyson
Following on from last week’s trading we have seen sterling begin to rally again after we have seen multiple better than expected economic data releases, all after the sharp drop we saw previously when the BoE Hiked interest rates.
We saw both unemployment figures and core retail sales numbers better than expected, throwing the market off but also strength bank into sterling for the time being.
With prices on the rise still and inflation rapidly growing above the 9% we are currently at already, now at a point where consumers are being squeezed with their purchasing power and beginning to make the cost of living a serious issue across the UK.
However these positive numbers show the UK’s economy is slightly more resistant to inflation than expected as consumer spending hasn’t begun to collapse just yet, but a decline could easily begin shortly if drastic measures are not taken by the Bank of England to combat this.
With the positivity mentioned above it doesn’t necessarily mean sterling will be plain sailing moving forward in the next couple of weeks, there is still a massive amount of uncertainty at play regarding the Ukraine – Russia situation which is still fully ongoing and affecting the euro just as much as the pound in different ways.
Also over the last week we have seen a new disease begin to contaminate the UK, Monkey Pox.
Although very early days it has seemed to double in case numbers in a very short space of time, with now suspected close contacts of the virus being asked to isolate from home.
If you are looking to make a currency transfer in the near future please get in touch with A Place in the Sun Currency if you’d like to take advantage of sterling’s recent rally, there are still a lot of negative factors in play but also inflation acting as a ticking time bomb in the background ready to damage the UK’s economic data once consumer spending cant keep up. Is it worth the risk waiting if you have a definite currency requirement in the months to come ?