15/11/2021 – Exchange Rates

  • Posted by currencies in Rate Alerts
  • November 15, 2021
  • No Comments

The GBP was under great pressure last week leading on from the Bank of England’s decision to keep interest rates on hold the previous week. The prior weeks before the decision, Sterling had gained on strong market expectations of an interest rate hike which have now been clawed back.

A bout of economic releases, for the UK this week, will give us an insight as to whether keeping rates on hold was the right move. Employment change and unemployment rate will be released on Tuesday – both are expected to come out stronger to support the GBP. One of the key reasons interest rates were kept on hold is due to the end of Furlough Scheme in September and uncertainties as to whether Employment figures would be able to sustain a hike. Should these releases show a stronger case for employment; it may tee up the Bank of England’s case to raise rates in December. On the scenario of a weaker result, the Bank of England may continue to hold off on raising rates this side of the year.

On Wednesday, the Inflation Rate for the UK will be closely watched. Rising inflation has been a global concern with natural gas and oil prices shooting up. Both core inflation rate and inflation rate year-on-year are forecasted to come out higher than previous. A higher inflation reading is likely to strengthen the Pound and again reiterate that the UK is ready for an interest rate hike. Should the inflation readings not meet market expectations and come out lower; this will reinforce the Banks decision not to raise rates and continue to monitor in the coming months before taking a decision to raise rates.

Retails sales for the UK will also have an impact this week as to the direction of the GBP this week. A jump in retail sales will show that consumers are still spending and have disposable income. As we approach Christmas, a time of the year where spending and retail sales is generally on the up, this will give us a clearer indication as to whether an interest rate hike is affordable.

GBP/EUR 1.1707 GBP/USD 1.3400 GBP/AED 4.9154
GBP/AUD 1.8202 GBP/CHF 1.2336 GBP/CAD 1.6798
GBP/NZD 1.8968 EUR/USD 1.1435 GBP/ZAR 20.319

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Your email address will not be published.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 Foreign Currency Exchange Services are provided by Currency Cloud Limited and Equals Connect Limited. For clients based in the United Kingdom payment services for Currencies 4 you 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 Currencies 4 you 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). 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