Yesterday was a real mixed bag for the Pound.
With US inflation coming in slightly better than expected at 5% annual growth this potentially paves the way for the FED to stop hiking interest rates further. In reaction the Pound gained nicely versus the Dollar.
Conversely the Pound gave ground to the Euro during the day although some of the losses were regained as Andrew Bailey, the Bank of England Governor, gave some upbeat rhetoric yesterday afternoon. The highlight looks to be an increase in consumer protection should a worst case scenario happen. At the moment the protection level stands at £85,000 which is way off the US who have a $250,000 protection level in place.
This morning saw UK GDP flat month on month. This was almost in line with expectations where analysts had expected 0.1% month on month growth. With such a small deviation there wasn't much effect on Sterling rates.
At midday today the National Institute of Economic and Social Research (NIESR) gives it's forecast for the UK quarterly GDP number. Analysts are expecting a negative -0.1% contraction.
Other highlights today are initial jobless claims in the States and a speech by the Bank of Canadas Governor, Tiff Macklem.
In the background there's also the ongoing meeting of the International Monetary Fund (IMF) which has been providing forecasts for the coming months.
Today’s Economic Calendar
UK: 12:00 NIESR GDP Estimate
US: 13:30 Initial Jobless Claims
UK: 14:00 BoE's Huw Pill Speech
CAN: 14:00 BoC's Tiff Macklem Speech
As ever we look forward to keeping you in the loop and look out for our next update.
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