Market Update

GBP continues to be vulnerable as we head to The Bank of England’s Friday deadline when they are due to bring their emergency support for bonds to an end. BoE Governor Andrew Bailey stated at the beginning of this week that the support would draw to a close this Friday, however there seems to be confusion within the markets as to whether there will be an extension to the emergency bond buying scheme to prevent a further sell-off in the bond market and more importantly in The Pound.

Across the pond The US Dollar continues to hold it’s own after yesterday’s September meeting minutes showed that policymakers all agreed on the need for more rate hikes in order to bring inflation further under control. The aim currently is for The Federal Reserve to continue hiking rates to an area in and around 4.5% as quickly as possible, with the view of then remaining at that level for some time in order to assess the economy for future possible hikes.

Later this afternoon we have the release of inflation data in The U.S, which is expected to remain above 8% as of September which would still be there or thereabouts at a 40-year high. Actual projections suggest Inflation will have dropped slightly from 8.3% but whether it comes out marginally lower than this or potentially even higher, The Fed Reserve are still set to raise rates in 3 weeks’ time which will only provide further strength for The USD.

Sticking on inflation, Germany have seen their inflation figures reach 10%, alarmingly higher than where it was this time last year. With The European Central Banks next meeting in 2 weeks, markets are now seemingly fully pricing another rate hike of 75 basis points and a total of 230 basis points of increases by Mid-2023.

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Your email address will not be published.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