By Luke Dyson
For the week so far Sterling has been performing very well against the Euro, yesterday nearing the highest point again in two and a half years.
We have had a busy week in terms of data so far, We have seen France report a -1.3% month on month inflation, putting France comfortably below the 2% inflation target.
We have the European Central Bank interest rate decision tomorrow, although France’s inflation data is lower than expected. It is still likely the ECB will still cut rates one or two more times for 2024.
For Sterling we have a busy next couple of weeks in terms of data releases.
As of this morning we have had inflation data come back lower than expected for year on year, reporting at 1.7%, under the 1.9% forecast. This has sent the Pound lower in morning trading, as it makes the Bank of England more likely to cut UK interest rates next month.
In terms of key dates to look out for which could drastically effect the currency rates are as follows:
30th October the Autumn Budget , this has potential to significantly impact the power of sterling moving forward depending on how markets interpret the announcements.
7th November the Bank of England interest rate decision, with rates likely now to be cut we could see sterling take a step back if this is the case.
Both of these announcements could be powerful market movers and also could start to move the market beforehand if they begin to get priced in to the current rates.
Given where sterling to euro is at present it’s still a buying opportunity with how the Pound has been performing.
If you have an up and coming requirement please get in touch with us at A Place in the Sun Currency. The next couple of weeks could be very turbulent.