All eyes on the Bank of England
5 November, 2015
Yesterday was a particularly busy day, as we approach the end of the FX trading week the currency market has seen a fair amount of movement over the last few days.
For those short term Euro buyers the day kicked off with a great start. After the ECB’s suggestion of further Quantitative Easing towards the end of last month, combined with the positive results from both Monday’s release of 55.5 for UK Manufacturing PMI and yesterdays release of UK Services PMI being forecasted at 54.5 but posting results of 54.9, the Euro has indeed weakened against the pound and is at a rate which has not been seen in over 10 weeks. However, although the rate is looking particularly strong, it should be mentioned that a correction in the rate is not unusual.
Following the US Fed Chairman Janet Yellen’s announcement yesterday that a rise in December’s interest rate is still on the cards although undecided, further movement concerning the euro/dollar seesaw should be anticipated, with the pound likely to be a beneficiary against the single currency.
Overnight the RBA Governor Stevens hinted in a speech that Aussie interest rates are likely to remain on hold as house prices cool and other factors were considered. The result was a slight weakening of the dollar of half a cent against Sterling. Those will a Aussie dollar purchase to make should be aware that with interest rates being left on hold without sign of any further cuts could lead to the strengthening of the dollar in the short term.
The day ahead will be key for what happens next to GBP/EUR-USD rates, as the Bank of England will publish its latest interest rate decision along with the quarterly inflation report. Further fluctuation to the big 3 rates may occur following the Bank of England Governor Mark Carney’s press conference today at 12.45.
Today could be a potentially volatile day for exchange rates, so be sure to give one of the Currency Index team a call and let us ‘give you more bang for your buck’ this Guy Fawkes day.
- 2020 (59)
- 2019 (190)
- 2018 (229)
- 2017 (253)
- 2016 (254)
- 2015 (253)
- 2014 (252)
- 2013 (287)
- 2012 (270)
- 2011 (576)
- Brexit deal to be done, or going, going, gone? 25 November, 2020
- Sterling starts the week down from the highs of last week 16 November, 2020
- Votes are in – albeit still being counted, will Donald trump Joe? 4 November, 2020
- No categories