GBP Exchange rates
After a welcome turnaround for sterling exchange rates yesterday I believe that today’s trading could reverse all the gains that the pound saw yesterday.
There is a whole batch of data releases out for the UK. Firstly the market will look to the minutes of the latest BoE meeting which are expected to show a decision to leave policy unchanged was unanimous. However the markets can always throw up a surprise. If the vote is not unanimous then expect to see the pound weaken if there are comments that QE may be extended in the future.
Plus we have Unemployment data out which is expected to see a small rise. If however the rise is more than expected then be ready for the pound to weaken by end of trading today.
USD Exchange rates
Last night The Federal Reserve left its interest rate unchanged at 0.25% and reiterated that interest rates would remain low for “an extended period.” The USD weakened against nearly all major currencies on the back of the announcement as it seems that the FED are having trouble deciding when to initiate the first rate hike just like their UK counterpart.
Sterling has lost around 6% against the USD since January. This morning we have already seen the USD start to reverse its losses from yesterday and I would not be surprised if we hit levels of 1.50 in the not to distant future.
If you would like any info on the above please email me directly at [email protected] and quote PSF.