There has been a slight sell-off in the Pounds value today, after the currency got off to bad start this morning as data disappointed.
Unemployment in the UK went up for the first time in 2-years and the markets weren’t expecting this to have occurred, which is why the Pound softened in the wake of the news this morning.
Despite this set-back I don’t think it’s damaging enough to force the Bank of England into changing their plans of raising interest rates in May as they’ve planned. The probability of the rate hike is now running at 80% and with such high odds I think its fair to say the rate hike has already been priced into the Pound’s value.
On a more positive note for the Pounds prospects wage growth picked up in December, which increases the chances of additional rate hikes in future. Wage growth has so far struggled to keep up with the increasing rate of inflation in the UK which had previously resulted in the BoE being hesitant to raise rates. Now that its picking up the BoE will be more likely to adopt a more aggressive approach regarding monetary policy so I expect that if we continue to see a pick-up in wage growth the Pound is likely to gain value.
Tomorrow morning there will be the release of UK GDP data which will be released at 9.30am. This has the potential to move markets depending on the outcome so do feel free to get in touch if you wish to plan around this event.
Do feel free to register your interest with me if you would like to be notified in the event of a spike in the Pounds value.
If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on firstname.lastname@example.org and I will endeavour to get back to you as soon as I can.