Exchange rate news this week

By Tom Arnold

Over the last few weeks Sterling’s situation has been dominated by the high inflation in the UK and the resulting interest rate rises the Bank of England are using to try and bring inflation down. Our regular readers will know that increasing interest rates usually lead to a stronger currency, as yield-seeking investors pile into that currency to take advantage of the higher returns.

Coupled with the stronger Pound we have seen weakness from both the Euro and the US Dollar. On the Euro side the weakness is largely due to the EU being in recession, and on the US side it is the reverse of the UK’s situation with US inflation coming down more readily and hence less of a need for currency-bolstering interest rate rises.

The week ahead is a busy one for the currency markets with plenty of key eco-stats due. UK unemployment, German CPI inflation, US CPI inflation, UK GDP and US Jobless claims are the key ones to watch.


Bank of England Governor Speech


UK Unemployment Rate

German CPI Inflation


US CPI Inflation

Bank of Canada Interest Rate Decision

UK House Price Survey



UK Industrial + Manufacturing Production

EU Industrial Production

US Initial Jobless Claims

US Producer Price Index


EU Trade Balance

US Consumer Sentiment Index