It's been a tough couple of days for the Pound. Hardly unexpected following the press conference given by the Bank of England yesterday. The somewhat gloomy predictions are for a 2 year recession, a doubling of unemployment and a sizeable upwards movement in mortgage payment. Offset against this is that interest rate hikes aren't expected to be as many or as high as previously predicted and inflation should now get under control.
However, with the Conservatives almost certainly going into tax rises and belt tightening mode, it's looking like a difficult period ahead in the UK.
This has meant GBP/EUR and GBP/USD took a bit of a battering yesterday.
The Dollar, conversely, is looking ever stronger again. Certainly USD/EUR is looking very favourable at the moment so any US citizens looking to buy in Europe could be looking at great value for money right now.
Today sees a decent smattering of news out starting with a speech by ECB chief, Christine Lagarde, then there's the US non farm payrolls. This will be keenly watched as a take on the US workforce situation. Analysts are expecting job growth of 200k.
Today’s Economic Calendar
EUR: 09:30 ECB President Christine Lagarde Speech
UK: 12:15 BoE Huw Pill Speech
US: 12:30 Non Farm Payrolls
CHN: Monday 02:00 Imports and Exports
As ever we look forward to keeping you in the loop and look out for our next update.
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