The Bank of England interest rate decision has given the pound a small boost against the Euro, US Dollar and Danish Krone. Although the minutes didn’t really suggest a rate hike is likely in the future the continued stance of one member voting for a hike seems to be giving the market a little confidence in the belief that UK rates will rise this year.
Personally I think this is unlikely as I feel unemployment will reduce inflation and then there will be no need for a hike. However in the short term this is great news as it does help the GBP, and exchange rates against some currencies have improved.
For the pound, focus now turns to the Retail sales out tomorrow for the UK and the GDP figures on Friday. This could cause volatility for sterling exchange rates, so if you think you may need to exchange currency fill in the form to the left and one of the PSF bloggers can keep you up to date with market movements!