Blog


Market Update

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.

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Your email address will not be published.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