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For access to your online account please contact your personal account manager, alternatively email team@regencyfx.com.
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.
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Today’s Economic Calendar
CAN: 15:00 BoC Interest Rate Decision
