By Simon Eastman
Yesterday we saw the European Central Bank hike interest rates by 25 basis points, which was fully expected and priced into the market already. So much so that the USD continued to rally against the Euro over the day, finishing at its highest level in a month.
Sterling/Euro initially went down as the announcement came, but following the press conferenc,e over the rest of trading the rates went back up giving those with Sterling in hand some of the best Euro buying rates we have seen lately.
Despite the ECB President Christine Lagarde highlighting inflationary pressures and growth downgrades, she would not commit to having a clear pathway for interest rate hikes over the year, leaving the Euro overshadowed by geopolitical risks as President Trump renewed threats against Iran.
The week closes off with UK GDP, industrial and manufacturing production figures alongside trade balance. German inflation with consumer prices index follows ahead of UK consumer inflation expectations at 9.30am. Next up we have a speech from ECB member Sleijpen, US Michigan consumer inflation expectations and sentiment indices along with 1 year and 5-year inflation expectations. The day rounds off with another ECB member speech from Nagel.
Plenty to end the week and move the markets, so if you have a currency requirement on the horizon give the team a call today so we can help make your money go further.