Market Update

Sterling weakness has been the main theme of September so far, and last week we saw these moves accelerated after the Bank of England decided to keep interest rates on hold and going against market expectations. Inflation has been cooling slightly (For now), however, we are still seeing weak retail sales and weak PMI data which are pointing towards the economy contracting over the coming months- in light of this data, it wouldn’t make sense for the BoE to raise rates as the general public would not be able to afford it. Following these releases the Pound to Euro rate is now below 1.15 and the Pound to Dollar exchange rate is trading at 1.22.

This week there isn’t a heap of data out as it is the last week of the month and quarter but for those very reasons, we can potentially see a lot of volatility throughout the week. The main releases are U.S GDP out on Thursday and European consumer confidence On Friday we have UK GDP data which is expected slightly higher than the previous, we also have European inflation data and U.S PCE Price index.

The trend currently is a weaker Sterling and Euro with a stronger Dollar- and currently, I would say the trend is your friend, if you have upcoming transactions and are concerned with current price movement then please don’t hesitate to contact me. The current inflation prediction is that it should continue to come down, however, I would pay attention to oil prices which have been rising and already showing in Canada’s inflation data- generally I would not assume the BoE are done with this current hiking cycle and it is still possible that we see another hike this year, unfortunately for Sterling rates, I feel we have seen the bulk of strength this year which is now providing good opportunities to those who are buying Sterling and have been waiting for better exchange rates.

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Your email address will not be published.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