The Pound has made some very positive gains vs the Euro during yesterday’s trading session with the release of the latest UK inflation figures.
UK inflation year on year came out higher than expected at 2.9% which is the highest level seen in 5 years.
This also helped to push GBPUSD exchange rates to their best level to buy US Dollars with Pounds in a year.
We also saw the EU Repeal Bill get voted through earlier this week with all of the Conservative Party in agreement which highlights a ‘strong and stable economy’ which is what Theresa May has spoken about many times over the last few months.
With inflation rising this will put a bit of pressure on the Bank of England to at least consider increasing interest rates at some point but in my mind I cannot see this happening until late 2018 or 2019.
However, when the Bank of England meet on Thursday we could see a shift in the voting pattern which could cause some movement for Sterling.
This morning we have the release of the latest UK unemployment figures as well as Average Earnings. Unemployment is currently the lowest in over 30 years but it is average earnings that is of most concern.
Indeed, with inflation rising and average earnings struggling to keep up I think we’ll also see some volatility at 930am this morning for Sterling exchange rates.
If you have a 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 (Tom Holian) on email@example.com and I will endeavour to get back to you as soon as I can.