Blog


04/06/2018 – This Morning’s Exchange Rates

  • Posted by currencies in Rate Alerts
  • June 4, 2018
  • No Comments

The exchange rates are listed at the bottom of this article. Please note they are for indication only. For a live quote please contact us.

Markets appear relieved that the Italian political situation has stabilised (at least for now), and do not seem overly concerned with escalating trade disputes. Italy’s new government will face a confidence vote in the two Houses today, which is expected to be an easy win.

Following Friday’s stronger-than-expected manufacturing PMI, further insight into domestic activity trends came from the construction PMI for May. In April, the headline measure rose strongly, rebounding from March’s weather- impacted dip into negative territory (below 50) to reach a five-month high of 52.5. The improvement continued into May and we see a figure of 52.5 again better than the expected 52. Construction sector accounts for only around 6% of UK economic activity, the growth outlook will be primarily driven by the dominant services sector. Tomorrow’s service PMI will hence be much more revealing for the outlook.

Assuming that the UK economy recovers in Q2, the likelihood of a Bank of England rate increase should also rise. In that context, comments from BoE rate-setter, Silvana Tenreyro, will be closely watched. Since joining the MPC last July, comments from Ms. Tenreyro have been few and far between. However, she has broadly supported the notion that UK Bank Rate will have to rise a couple of times over the next few years.

Elsewhere, it is a relatively quiet day with no major data or speeches.

GBP/EUR 1.1402

GBP/USD 1.3361

GBP/AED 4.9102

GBP/AUD 1.7496

GBP/CHF 1.3168

GBP/CAD 1.7258

GBP/NZD 1.9024

EUR/USD 1.1702

GBP/ZAR 16.700

Leave a Reply

Your email address will not be published.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

eight − 3 =

What's Going On?

Currencies 4 You Limited is a company registered in England and Wales (registered no. 06866898). Registered office: Regus House, Victory Way, Admirals Park, Crossway Dartford, DA2 6QD. Currencies 4 You's Payment and Foreign Currency Exchange Services are provided by Ebury Partners UK Limited. Ebury Partners UK Ltd is 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: Z209673X | Terms and Conditions | Privacy Statement | Careers