Market Update

Standstill. That’s one way to explain the currency market over the past day. UK PMI data came out positive except that of manufacturing PMI.

Today retail sales came in at -0.3% vs forecasts at 0.6%, as we know retail sales speaks volumes about the health of an economy, so a contraction only aligns with the income squeeze we are seeing. If consumers feel confident about their financial future retail sales tend to push higher along with the economy. However, when uncertainty seeps into consumers they tend to hold off on purchases and the retail sales figure is the first proxy of that. With a weak government spring budget and expectations to see a 54% surge in energy bills it’s clear to say that Britons won’t be breaking open their wallets on retail goods in the coming months. As a result, pound is trading 40 points lower at 1.3160 against the dollar and is sitting at 1.1950 against the euro.

Over in the U.S jobless claims reached a 53-year low, so once again reaffirming the statements made by Fed Chair Jerome Powell on the tightness of the labour market. 

Over in Europe we have seen PMI data hold up fairly well despite the current landscape within the economy, beating forecasts across all three measurements. The Russia economy is set to erase 15 years of economic gains due to sanctions and mass departures of corporations.

The euro against the dollar is holding steady at 1.10 at the time of writing, it seems global asset and money markets are holding tight for any developments in Ukraine to add a sense of normality to what already has been a far from normal economic landscape.   

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Your email address will not be published.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 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). 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. | Terms and Conditions | Privacy Statement | Careers