06/06/2024 – Exchange Rates

  • Posted by currencies in Rate Alerts
  • June 6, 2024
  • No Comments

Yesterday The Bank of Canada became the 2nd Central Bank after The Swiss National Bank to implement their first rate cut and this came after six consecutive meetings of leaving rates on hold. Their rates have been reduced by 25 basis points, down from the highs of 5% to 4.75%. Justifying the reasons for their first rate cut, Bank of Canada governor Tiff Macklem stated that the central bank have come a long way in their fight against inflation, and although they are not quite there in terms of the 2% target, they are feeling extremely confident that over the coming months inflation will naturally fall closer to the 2% area. This is mainly due to a pick up in the supply of workers which in turn has allowed for a drop in wages and the hope is then over time prices should follow.

Moving forward, further rate cuts is certainly a possibility, with Macklem again stating that if Inflation continues to ease, and confidence amongst policy members grow in terms of inflation reaching the 2% level then it would be reasonable to see further rate cuts over the coming months. Of more importance to the FX markets will be the size of the next cut and the reasons behind it.

Sticking with Interest Rates, we have the European Central Banks decision this afternoon at 13:15 GMT. It’s widely expected that the central bank will also implement their first rate cut and again we should see a 25 basis point cut. Impacts from this on the currency rates should be fairly limited as this is pretty much a foregone conclusion, however the press conference 30 minutes later will be of more importance as any guidance in regards to a future rate cut and again the size of the cut could well see The Euro lose ground against its major peers.

We round the week off tomorrow with a basket of high importance data releases, with Quarterly GDP figures for Europe and employment figures for both Canada & The U.S. With The Federal Reserve holding their interest rate meeting next Wednesday, tomorrow’s employment release will be of huge importance and could well see some volatile movement on the currency markets.

GBP/EUR 1.1744 GBP/USD 1.2779 GBP/AED 4.6868
GBP/AUD 1.9224 GBP/CHF 1.1395 GBP/CAD 1.7504
GBP/NZD 2.0572  EUR/USD 1.0870 GBP/ZAR 24.025

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Your email address will not be published.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