17/11/2021 – Exchange Rates

  • Posted by currencies in Rate Alerts
  • November 17, 2021
  • No Comments

The dollar was much stronger this morning, benefiting from the release of strong retail sales, while sterling climbed after a hot inflation release pointed to a December Bank of England interest rate hike.

The latest catalyst for these dollar gains was the release of surprisingly strong U.S. retail sales data on Tuesday, which climbed 1.7% on the month in October.

This added to the momentum generated last week by consumer prices surging at the highest rate since 1990 and could encourage the U.S. Federal Reserve to accelerate the tapering of its asset purchase program, likely bringing forward the timetable of interest rate hikes.

At the same time, European Central Bank President Christine Lagarde has this week pushed back on the idea of her central bank lifting interest rates in the near future, warning that tightening monetary policy now to rein in inflation could choke off the Eurozone’s recovery.

Elsewhere, GBP/USD rose 0.3% after British inflation surged to a 10-year high last month, cementing expectations that the Bank of England will raise interest rates next month, which would make it the first G7 central bank to do so since the pandemic.

October’s CPI inflation hit 4.2%, above the 3.9% estimated and well north of the Bank’s 2% target. It marked a steep acceleration from the 3.1% reading in September and underlines that inflation is becoming more of a problem, not less. Core inflation also surged to 3.4%. The good news is that pay is up 5.8%.

This comes the day after the release of stronger-than-expected U.K. employment data even with the end of the government’s job-protecting furlough scheme.

GBP/EUR 1.1862 GBP/USD 1.3417 GBP/AED 4.9213

GBP/AUD 1.8435 GBP/CHF 1.2494 GBP/CAD 1.6863

GBP/NZD 1.9168 EUR/USD 1.1295 GBP/ZAR 19.020

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Your email address will not be published.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