27/10/2023 – Exchange Rates

  • Posted by currencies in Rate Alerts
  • October 27, 2023
  • No Comments

No surprises yesterday when ECB (European Central Bank) decided to hold rates at 4.5%. President Christine Lagarde mentioned that there could be further actions in the future but that current market situation did not require monetary actions. In September we saw inflation levels drop drastically for a number of European nations. Market speculations is now that ECB have ‘over-tighten’ (raised rates to high) and that ECB likely will be one of the first major central banks to start cutting rates in 2024 to ease of pressure on households and business.

This week we have seen USD/JPY break the vital levels of 150. Last time this happened was last year in October and the Japanese government intervened to temper further market disruptions. So far this time, we have not seen any signs of interventions and keep in mind that BOJ (Bank of Japan) do hold a meeting on Tuesday, currently in negative territory when it comes to interest rates (-0.1%). While on the topic of central banks meetings, we also have the Federal Reserve and BoE meeting next week. At the moment, the only monetary actions that looks possible would come from BoE with 25 basis points.

Today main data release is from the US and Core PCE Price Index (Personal Consumption Expenditure) with recent developments seeing inflation pressure coming down in the US, PCE is expected to fall from 3.9% to 3.7% for September. US has been adjusting better to higher interest rates levels than both UK and Europe, seeing a better performing economy and healthier labour market. Recent concerns for upcoming recessions across the globe has caused a sell off on stock markets in the US, Europe and the UK, which has benefitted the USD as it’s the most valuable (market share).

Next week is packed with major data releases and Central banks meetings. Current market momentum suggest any exposure against USD, whether its in GBP or EUR should take actions sooner rather than later.

GBP/EUR 1.1473 GBP/USD 1.2110 GBP/AED 4.4454
GBP/AUD 1.9087 GBP/CHF 1.0910 GBP/CAD 1.6732
GBP/NZD 2.0717  EUR/USD 1.0553 GBP/ZAR 22.839

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Your email address will not be published.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