Blog


Market Update

UK

Consumer confidence for the UK has reached its peak since Covid-19 restriction have been put in place. Following suit, consumer spending has now breached pre-pandemic levels. Will this economy continue to rebound? Retail footfall, namely public transport, pubs, restaurants have recovered over the past couple of weeks which could continue to recover further as government guidelines surrounding restrictions are eased.

Manufacturers within the UK have also experience and uptick in optimism – order for new work and investment plans are rising for most to take advantage of tax break announced by Rishi Sunak. Factories are now suggesting they will be seeking to grow workforces which could aid the Pound as more jobs are created.

EUR

The European Central Bank has kept its monetary policy and interest rates unchanged. President Lagarde of the ECB will look to maintain this stance as Covid-19 recovery and uncertainties surrounding the pandemic still linger. Concerns are growing as borrowing costs are on the up for European Governments before the economy makes a full recovery from the pandemic. The ECB expect purchases under the Pandemic Emergency Purchase Programme (PEPP) to shift in the upwards direction in comparison to the beginning of the year. Lagarde also mentioned that economic activity may have contracted once again following 3 months of contraction of 2021.

Focus will now shift to the next ECB meeting in June as ECB members are looking for vaccination rates to rise and economies to start opening up. This will be subject to how the pandemic continues.

USD

President Joe Biden is on track to raise taxes on capital gains – almost doubling the rate for high earners. This has caused US Stocks to have their worst performing day for a number of months and also boosted demand for the US dollar as a safe haven. Inflation for the US has improved closer to the target of 2%. Although investor may not want to see big jumps towards this causing hyper-inflation; inflation will be monitored closely with potential for rate hikes also on the agenda.

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Your email address will not be published.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, Equals Connect Limited and Ebury Partners UK 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). Currencies 4 You Ltd is partnered with Ebury Partners UK Limited as its Programme Mananger. Ebury Partners UK Limited are authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution. (Reference Number 900797). Ebury Partners UK Ltd is registered with the information commissioners office with registration number: ZA345828. | Terms and Conditions | Privacy Statement | Careers