18/11/2021 – Exchange Rates

  • Posted by currencies in Rate Alerts
  • November 18, 2021
  • No Comments

The Pound has continued its recovery this week after positive employment data removed fears of the potential impact from the furlough scheme ending in October. The potential fall-out from furlough was cited as the main reason for The Bank of England resisting a rate hike earlier this month, and with inflation surging over 4% for the first time in a decade bets have resurfaced that The Bank of England will in fact raise rates by 15 bps in their December meeting. All eyes will now be focused on the Retail Sales release tomorrow. A strong Retail Sales will only further support a rate hike showing consumers would be able to afford a rate hike when prices eventually revert to normal levels.

Across the pond, inflation hit a record 30-year high in October, and with better than expected Retail Sales released on Tuesday we’ve also seen bets raised that The Fed Reserve will hike rates sooner rather than later. Initially it looked like The Fed would leave rates untouched until at least June 2022 but with inflation continuing to surge and consumers still spending it’s painting a similar picture of The UK’s economy. Weekly jobs data released this afternoon won’t be watched as closely as it has recently, but will still be a key element for The Fed to ensure a rate hike takes place at the right time.

The Euro of late has been suffering against both GBP & USD, as several countries within Europe have reimposed partial lockdowns for the unvaccinated percentage of the population as they continue to grapple with this fourth wave of Covid which is finding its way across The Bloc. Inflation data released yesterday also came out above 4% for Europe as the world as a whole continues the struggle against rising prices and supply shortages. However, although inflation is climbing The European Central Bank seem adamant to leave rates unchanged for pretty much the duration of 2022 which could potentially pave the way for a weaker Euro against both currencies.

GBP/EUR 1.1907 GBP/USD 1.3494 GBP/AED 4.9481
GBP/AUD 1.8533 GBP/CHF 1.2521 GBP/CAD 1.7012
GBP/NZD 1.9168 EUR/USD 1.1319 GBP/ZAR 20.834

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Your email address will not be published.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