Blog


02/08/2018 – This Morning’s Exchange Rates

  • Posted by currencies in Rate Alerts
  • August 2, 2018
  • No Comments

Please find the exchange rates listed at the bottom of the article, the rates are for indication purposes only, for a live quote please contact us.

With the FOMC meeting out of the way, and no surprises from Powell and co., our attention shifts to the Bank of England (BoE). Today’s Quarterly Inflation Report is particularly interesting, given a range of potentially market-moving dynamics are in play.

Since the BoE’s decision to stand pat in May, Analysts have been resolute in its view that the MPC would raise rates by 25bp in August (aligned to our expectation of a strong Q2 data docket). This is set to be the case, with the market assigning a 90% chance to policymakers voting to raise the Bank rate. We expect the vote to be 7-2.

The BoE’s latest quarterly economic forecasts are expected to be broadly unchanged from May’s Inflation Report, but rate-setters will be more confident that the economy is evolving in line with their central projections. That said, the risks of revisions to the growth and inflation outlooks are skewed to the upside.

Inflation projections risk being nudged modestly higher, due in part to recent movements in the oil price and exchange rate.

This may result in inflation being seen to remain above target beyond mid-2020, which could argue for a steeper path of policy tightening.

The Bank is also expected to provide additional forward guidance on where it sees ‘neutral’ interest rates – the level consistent with full employment and stable inflation – over the medium term. We expect a range estimate of around 2.00-2.50% (nominal) / 0.00%-0.50% (real).

GBP/EUR 1.1242

GBP/USD 1.3070

GBP/AED 4.7994

GBP/AUD 1.7734

GBP/CHF 1.2996

GBP/CAD 1.7024

GBP/NZD 1.9338

EUR/USD 1.1609

GBP/ZAR 17.430

Leave a Reply

Your email address will not be published. Required fields are marked *

What's Going On?

Currencies 4 You Ltd is a company registered in England and Wales (registered no. 06866898). Registered office: Regus House Victory Way Admirals Park, Crossway, Dartford, Kent, DA2 6QD. Currencies 4 You Ltd Payment and Foreign Currency Exchange Services are provided by Currency Cloud Limited, Equals Connect Limited and Ebury Partners UK Limited. Currency Cloud Limited. Registered in England No. 06323311. Registered Office: Stewardship Building 1st Floor, 12 Steward Street London E1 6FQ. The Currency Cloud Limited is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money. FCA registration number: 900199. Payment Services are provided by Equals Connect Limited, registered in England and Wales (registered no. 07131446). Registered Office: Vintners’ Place, 68 Upper Thames St, London, EC4V 3BJ. Equals Connect Limited are authorised by the Financial Conduct Authority to provide payment services (FRN: 671508). Currencies 4 You Ltd is partnered with Ebury Partners UK Limited as its Programme Mananger. Ebury Partners UK Limited are authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution. (Reference Number 900797). Ebury Partners UK Ltd is registered with the information commissioners office with registration number: ZA345828. | Terms and Conditions | Privacy Statement | Careers