Happy Friday, another week gone already…
Yesterday Sterling was holding a much stronger tone after a more hawkish approach from the Bank of England. The BoE did vote to keep policy on hold however, two MPC members voted to reduce QE and that is an improvement on the one previously.
It is important to note that the BoE did say that the case for tightening policy has strengthened since its last meeting. This suggests that we are likely going to be seeing rate hikes next year, bringing the bank rate to 0.6%.
In terms of data yesterday, the flash PMIs declined right across the board in the US, UK and the Eurozone in September. With that being said, both sector readings in all three economies firmly look to be in expansion mode, consistent with positive GDP growth, even if it is at a slightly slower pace in the third quarter.
Today, the only data of any real note is the German Ifo which is forecast to edge lower in September. However, unless there are some big surprises it is very unlikely to have any impact on the euro.
Have a fantastic weekend, and we look forward to hearing from you next week.
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: 00:01 Gfk Consumer Confidence (September)
JPN: 01:30 Flash Jibun Manufacturing PMI (September)
ITA: 09:00 ISTAT Business Confidence (September)
ITA: 09:00 Consumer Confidence (September)
GER: 09:00 Ifo Business Climate (September)
IRL: 11:00 Labour Force Survey (Q2)
US: 15:00 New Home Sales (August)