Blog


21/03/2022 – Exchange Rates

  • Posted by currencies in Rate Alerts
  • March 21, 2022
  • No Comments

A quick recap of last week. We saw the Fed raise rates to 0.5% and the Bank of England follow suit raising rates to 0.75% both events widely anticipated by markets and priced in.

The tonality for both central banks however were far from similar, the fed Chair Jerome Powell was extremely hawkish on the state of the U.S economy particularly the labour market.

However, Andrew Bailey was soft in tone regarding the U.K and future tightening within the economy which led to the dramatic drop in sterling pairs across the board with cable trading now at 1.3175 at the time of writing.

Over in Europe we’re seeing a declining sense of faith in the economy as Russia-Ukraine tensions seem to be lingering around causing rates on the euro to drop against major pairs. Euro dollar is trading at 1.1050 and pound euro at 1.19 both close to lows for the year. 

Europe’s Achilles hill, being energy reliance on Russia, is what has got them into the current turmoil they are in making it hard for the ECB to adjust monetary policy with rates in negative territory.

The real question is what effect will this have on the euro? Well, unless geopolitical tensions ease and talks are made, we can expect a lower rate across both euro dollar and pound euro as the countering central banks continue to raise rates.

This morning we have President Lagarde’s speech which we expect to have little or a muted effect on rates, whilst later within the afternoon Jerome Powell talks.

GBP/EUR 1.1879 GBP/USD 1.3137 GBP/AED 4.8181

GBP/AUD 1.7797 GBP/CHF 1.2225 GBP/CAD 1.6568

GBP/NZD 1.9064 EUR/USD 1.1044 GBP/ZAR 19.565

Leave a Reply

Your email address will not be published.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

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. Currency Cloud Limited. Registered in England 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. FCA registration number: 900199. 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). | Terms and Conditions | Privacy Statement | Careers