By Matthew Boyle
As we reach the mid point of the month, the pound has been slowly regaining its losses against the single currency suffered earlier this month.
It dropped by almost 2 cents following excitement that the Bank of England would raise interest rates but then didn’t. Helped by a strong USD, that has encouraged the Pound to make see-saw gains against the Euro, we have now regained around half of the loss suffered which is welcome news for any Euro buyers.
It seems the Pound is currently at somewhat of a crossroads. Whilst the imminent Bank of England hike in rates is good news for GBP rates, we have already seen the impact a delay can have to what might be inflated exchange rates.
And indeed, today could be a pivotal day as Andrew Bailey gives a speech and the Monetary Policy committee meet this afternoon. All eyes will be watching here for any clues or change to the current stance.
In what continues to be a busy week, we also have UK unemployment data and Eurozone GDP tomorrow.
Wednesday sees the critical inflation figure for the UK which is closely linked to potential UK interest rate movement and finally, Friday sees ECB President Lagarde give a speech.
It is a very busy week and one largely dominated by GBP/EUR data so be prepared for a bumpy ride. Stay in close contact with your account manager should you have any upcoming transfer to avoid being caught out by any volatility.