Login

Market Comment - 4th February 2022

Posted by Andy DyerFebruary 4, 2022

Good morning,

Let's talk GBP/EUR. Following the 9 to 0 unanimous vote by the Monetary Policy Committee (MPC) to raise interest rates in the UK to 0.5% the Pound jumped versus the Euro yesterday. However the rate then plummeted afterwards. The reason for this was that Christine Lagarde, the President of the ECB, has changed tack and now appears hawkish on the Euro. In December the rhetoric from the Eurozone was for no rate hikes. However, in yesterdays press conference, Lagarde suggested rate hikes were on the cards.

As we had previously mentioned any correction would be sharp which it certainly was yesterday.

As the UK rate hike was already priced in it's difficult to see a catalyst for the GBP/EUR rate to push back up in a hurry. There's still plenty of political turmoil playing out in various parts of the UK suggesting the Pound possibly isn't out of the woods yet.

The Eurozone Retail Sales numbers out later may have some effect on the rate.

In the States it's Non Farm Payroll day. This is a bellwether snapshot of the health of the US economy and employment market showing changes in job numbers in the US removing seasonal fluctuations. Analysts are expecting job growth of 150k jobs. Any significant variation to that number could see the Dollar move.

Outside of this other majors exchange rates are in status quo. Chinese New Year is still being celebrated in China so their markets are closed and Canada announces it's unemployment rate later.

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

EUR: 10:00 Retail Sales

US: 13:30 Non Farm Payrolls

CAN: 13:30 Unemployment Rate

© 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.

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