Market Comment - 13th April 2022

Posted by Stuart PritchardApril 13, 2022

Good morning,

Straight to it. The UK inflation came in this morning at a ridiculous 7%. Well above analysts expectations of 6.7%. Whilst previous high figures have been good for Pound rates (due to expectation of interest rate hikes), this time it's had the opposite effect.

The GBP/USD rate has dived below a critical, emotional level of support. This is fantastic if you are looking to change Dollars into Pounds. Let's see if that rate holds or bounces back.

Against the Euro the Pound took a bit of a pull back too from banging it's head on the familiar top of the mid term range.

Unfortunately the inflation rate also adds to the mounting pressure of the cost of living. This will certainly dominate business headlines for some time to come. There will be a mid term squeeze on consumers. Rising interest rates mean higher fixed rate mortgage deals resulting in higher monthly mortgage payments. Factor in the increasing cost of living and there will be tough times ahead for a lot of people.

Looking ahead there's the Bank of Canada's interest rate decision out later but most eyes will be on the ECB's interest rate decision tomorrow where analysts are predicting the ECB to keep the rate at negative (yes, negative) 0.5%. If they decide on a hike expect fireworks for the GBP/EUR rate.

As ever we look forward to keeping you in the loop and look out for our next update.

Our friendly currency experts are here to assist you and guide you through the markets, we offer a first-class service and even an online platform so you can monitor your transaction in real time.

Our business ethos is based on bank beating rates and fantastic customer service, click the link below for a no obligation quotation and see the savings for yourself.

Today’s Economic Calendar

CAN: 15:00 BoC Interest Rate Decision

© 2022. RegencyFX Ltd. All rights reserved. *Third party fees may apply.

Payment services for RegencyFX Ltd are provided by The Currency Cloud Limited. Registered in England No. 06323311. Registered Office: The Steward 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). In the US Currency Cloud operates in partnership with CFSB. CFSB fully owns the bank program and services are provided by The Currency Cloud Inc.

Payment services for Regency FX 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).

License No: XCML00000151326. Sciopay Ltd is authorised by the Financial Conduct Authority as an Authorised Payment Institution. Firm Reference Number: 927951

Currency Pairs, Approved Jurisdictions and Non-Permitted Activity

linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram