By Matthew Boyle
Last week saw the pound come under pressure from both the USD and the Euro, and as a result buying rates against both drop off.
Midweek saw an uptick in UK unemployment levels to the highest rate since 2021 which saw the start of the decline for Sterling rates. This was followed by a lower-than-expected inflation reading – despite a rise from 2.9% to 3.1%, it didn’t rise as much as the markets had priced it in. And combined with the same 6-3 monetary policy committee vote as last time to hold interest rates, this saw the pound slip, particularly against the single currency with it loosing around a third of a cent in the following day’s trading.
For the greenback (US Dollar), the announcement that the Fed decided to raise interest rates to 3.75% saw the greenback strengthen across the board, seeing it push noticeably against both the pound and Euro, with it gaining close the half a percent against both, and continuing its recent push amidst ongoing military tensions and resulting increasing oil prices.
The week ahead is relatively quiet in the way of data releases albeit we do have several speeches from the ECB and some manufacturing and services data from the UK, Europe and the US on Wednesday, which will see the 3 majors go head-to-head. On Thursday, we have Australian unemployment data, and the week closes out with durable goods orders and the Michigan Consumer Sentiment Index
With the Pound on the back foot, it will be a close watch as to whether it can show any recovery or whether its slow slide down will continue. Those with an upcoming requirement would be well advised to speak with their currency consultant sooner rather than later, as we offer several ways in which you can remove risk in these uncertain times and help make your money go further.
Monday
16.00 EUR ECB President Lagarde Speech
Tuesday
13.00 EUR ECB President Lagarde Speech
Wednesday
08.30 EUR German manufacturing and services data
09.00 EUR European manufacturing and services data
09.30 GBP UK manufacturing and services data
14.45 USD S&P manufacturing and services data
Thursday
14.30 AUD Unemployment data
Friday
13.30 USD Durable goods orders