03/02/2022 – Exchange Rates

  • Posted by currencies in Rate Alerts
  • February 3, 2022
  • No Comments

The Pound has opened this mornings session slightly lower against The USD after disappointing earnings results for Meta, previously known as Facebook and has therefore seen a sell-off in tech and social media stocks, with people buying into the USD. We do expect GBP to recover moving later into the afternoon as The Bank of England have their Interest Rate meeting at Midday.

Expectations suggest The Bank of England will increase Interest Rates from 0.25% to 0.5%, bringing a first back-to-back rate hike since 2004, due to inflation climbing to a 30 year high. This hike to 0.5% has pretty much been priced in however, so any strength for Sterling will come from any potential forward guidance outlined by Andrew Bailey in the conference afterwards. As the warmer months come into sight, it will be interesting to see where The Bank of England see’s inflation heading to in the near future and whether more rate hikes will be needed to keep it under control.

Straight after The Bank of England, we have the ECB’s Interest Rate decision where inflation has been a major concern with data releases on Wednesday showing consumer prices unexpectedly rising by a record 5.1% January. This is more than double the 2% target. It should be noted however, that The ECB are reluctant to make any moves at this meeting, but again the press conference after will be of huge importance in relation to when President Lagarde feels they can start increasing rates.

For the rest of the week, the focus will be on The U.S with their monthly Non-Farm data due out tomorrow. ADP Employment Change was released yesterday in The U.S, this measures the level of Non-Farm Private employment and came out horrific for The U.S, indicating that actually tomorrow’s data for employment will also follow suit. However, as we’ve seen over the past 6 months, the employment figures in The U.S. have been extremely volatile so we can expect The USD to be volatile off the back of this.

GBP/EUR 1.2003 GBP/USD 1.3540 GBP/AED 4.9662
GBP/AUD 1.9026 GBP/CHF 1.2488 GBP/CAD 1.7204
GBP/NZD 2.0309 EUR/USD 1.1270  GBP/ZAR 20.711

Leave a Reply

Your email address will not be published.

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 for clients based in the United Kingdom and rest of the world, payment services for Currencies4you are provided by The Currency Cloud Limited. Registered in England and Wales 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 (FRN: 900199).For clients based in the European Economic Area, payment services for Currencies4you are provided by CurrencyCloud B.V.. Registered in the Netherlands No. 72186178. Registered Office: Nieuwezijds Voorburgwal 296 - 298, Mindspace Nieuwezijds Office 001 Amsterdam. CurrencyCloud B.V. is authorised by the DNB under the Wet op het financieel toezicht to carry out the business of an electronic-money institution (Relation Number: R142701). For clients based in the United States, payment services for Currencies4you are provided by The Currency Cloud Inc. which operates in partnership with Community Federal Savings Bank (CFSB) to facilitate payments in all 50 states in the US. CFSB is registered with the Federal Deposit Insurance Corporation (FDIC Certificate# 57129). The Currency Cloud Inc is registered with FinCEN and authorised in 39 states to transmit money (MSB Registration Number: 31000206794359). Registered Office: 104 5th Avenue, 20th Floor, New York, NY 10011. 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). Payment services for Currencies 4 You Ltd are provided by Sciopay Ltd. Sciopay Ltd is a company incorporated in England & Wales. Registration No: 12352935. Sciopay Ltd is licensed and regulated by HMRC as a Money Service Business (MSB). Licence No: XCML00000151326. Sciopay Ltd is authorised by the Financial Conduct Authority as an Authorised Payment Institution. Firm Reference Number: 927951. Currencies 4 you's payment and foreign currency exchange services are provided by Global Currency Exchange Network Ltd T/A GC Partners. Global Currency Exchange Network Ltd is authorised by the FCA under the Payment Services Regulations, 2017 (FRN: 504346). Registered as a Money Services Business, regulated by HM Revenue & Customs ("HMRC") under the Money Laundering Regulations 2017. (Registration number is 12137189). Registered in England and Wales. Company number 04675786. Registered Office 3rd Floor 100 New Bond Street, London, England, W1S 1SP. | Terms and Conditions | Privacy Statement | Careers