Yesterday the Bank of England raised interest rates as expected to 1%. However more importantly the MPC (Monetary Policy Committee) voted 9 to 0 for the hike where there was expected to be 1 vote against the rate rise. Andrew Bailey, the Bank of England Governor, then gave a press conference. Unfortunately it was, as should be expected, factual and open about the state of the UK economy for the coming months. The BoE is expecting inflation to get even higher than the current levels and the cost of living position to get even worse.
This had a negative impact on the strength of the Pound which tumbled versus the Euro and the Dollar.
This could be a very opportune time to convert Euros or Dollars to Sterling.
There are a couple of speeches today from members of the MPC which will almost certainly have an effect on the Pound rate. If they follow the trend set by Andrew Bailey then expect further weakness. However they may have a slightly more bullish outlook for the UK so watch this space.
The US has it's non farm payrolls out later which is seen as the bellwether of the US economy as it indicates the job market there removing any seasonal fluctuations. Analysts are expecting job growth of 391k jobs. Anything either side of that could cause volatility.
There's also Chinese import and export data out in the early hours of Monday which is seen as a more general look at the state of the global economy.
As ever we look forward to keeping you in the loop and look out for our next update.
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Today’s Economic Calendar
UK: 10:15 BoE Catherine Mann Speech
UK: 12:15 BoE Huw Pill Speech
US: 13:30 Non Farm Payrolls
US: FED's John Williams Speech
CHN: Monday 03:00 Import and Export Data
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