Pound Running on Empty

By Matthew Boyle

Last week was largely dominated by the ongoing fuel crisis in the UK. Following reports of a nationwide petrol shortage drivers across the nation fled to the pumps in panic resulting in petrol stations everywhere running dry and closing.

It subsequently transpired there was in fact no shortage, but it was too late to stop the momentum, and because of so many filling up their cars it had become a real fuel crisis.

The effect could be seen in GBP rates as the recent gains the Pound made following the Bank of England announcement of an on-course interest rate hike in Q1 2022 were eroded.

As the week progressed and the hysteria calmed slightly so too, we saw the Pound recover.

As this new week begins it seems fuel issues continue and now amidst fresh warnings of further supply chain issues in the coming months it looks like a potentially bumpy road ahead for the Pound.

We have a very busy week ahead in terms of data so if you have currency to buy in the coming weeks, give A Place in the Sun Currency a call to avoid risking the Pound breaking-down further.

Monday

07.30     EUR        ECB member Speech

08.00     USD        OPEC meeting

08.30     EUR        Sentix Investor confidence

Tuesday

00.30     AUD       Imports, exports, Trade balance and Interest rate decision

07.00     EUR        Ecofin Meeting

08.00     EUR        Markit PMI

14.00     USD       ISM Services

15.00     EUR        ECB President Lagarde Speech

Wednesday

02.00     NZD       RBNZ rate statement and interest rate decision.

10.00     EUR        Retail Sales

15.00     USD       ADP Employment Change

Thursday

09.30     EUR        ECB member speeches

13.30     USD        Jobless Claims

17.00     CAD       BOC Governor Macklem Speech

Friday

13.30     USD        Non-farm payrolls

17.30     CAD       Unemployment rate