Mark Carney Speech Today

28 August, 2013

Robin Haynes

In a week devoid of much important UK data, today’s speech by Mark Carney to Parliament at 12.45pm is one of the only potential movers of the Pound. Mr Carney will be addressing MPs about how monetary policy could improve the UK’s economy, and any hints as to further changes in the Bank of England’s strategy under his leadership will be eagerly awaited by markets. However, with the new Governor already having set out his policy to keep interest rates held until unemployment drops, there may be limits as to the influence today’s speech will actually have on currency markets, unless there are any surprises.

Low interest rates are generally likely to weaken the Pound and cause exchange rates forsending money abroad to fall, but the other side of the argument is that a policy promoting economic growth will aid investment in the UK and help the Pound – leaving sterling finely balanced between the two schools of thought.

There is no other major data due around the world today as we head toward the end of August.

Tomorrow morning at 8.55am sees the release of German unemployment, expected at 6.8%, and any figure lower than this will be likely to strengthen the Euro and make buying Euros more expensive. German inflation follows tomorrow at 1pm.

While the markets are quiet for the end of the summer holidays, rates are still looking good for most currencies; speak to us at Currency Index if you would like a quote for your own transaction whether you are buying now or looking to fix a rate for future delivery.