Market insights

UK interest rate set to jump even higher - Market Insight 2nd August 2023

Eyes will already be turning the to Bank of England in the UK. Tomorrow sees the BoE make it's interest rate decision where a still rampant inflation number means a hike is almost nailed on. Although the inflation number did drop more than expected there is every likelihood that further corrective action is required. Pound rates are in for a choppy ride in the next 48 hours.

Yesterday saw the Eurozone report a better than expected unemployment rate of 6.4% which saw the Euro immediately gain ground versus the Pound and brought Sterling back away from the recent highs. And with almost no scheduled news out today it would seem it's only a global news story that could affect things.

GBP/USD is similar. Following the strengthening of the Dollar last week the Pound looks to have found some footing with the GBP/USD rate into a sideways pattern and it looks like tomorrow would be the catalyst for any strong move.

The Pound has continued to surge versus the Australian Dollar with the rate reaching 3 year highs in overnight trading. There's Australian retail sales and import export data out in the early hours of tomorrow so maybe that will cause the rebalancing.

Business news continues to centre on the cost of living and spiralling debt. Alongside this is the news that the credit rating agency, Fitch, has downgraded the US from AAA to AA+ citing mismanagement of the economy over 20 years. Although this sounds like a major story it's had little effect on the markets which pay little attention to this type of thing since the debacle of the debt crisis 15 years ago.

Get your free quote now

Economic calendar

US: 13:15 ADP Employment Change

AUS: Thursday 02:30 Import and Export Data

AUS: Thursday 02:30 Retail Sales

As ever we look forward to looking after you and please keep an eye out for our next Insight.

Our friendly currency experts are always on hand to help you. We offer a first class service backed up by an easily accessible online platform to ensure you always have visibility of your transactions.

Our business ethos is based on bank beating and fantastic customer service. Click on the link above for a free, no obligation quote, and see for yourself how Regency FX can save you money.

Open a free account

It is free and easy