Sterling rates have climbed a little over the last 24 hour as the BOE remains quite. Due to the China slowdown and as a result of the poor data coming out of the UK the market had expected a more negative tone from the Bank of England earlier today. They were in-fact rather mute with very little information released. It is expected that as a result of the recent trend globally and within the UK that an interest rate change will now be well into the back of next year. This change is widely expected to cause a negative tone for the the UK pound as investment levels and therefore demand drive Sterling’s value down. As a result of the BOE not confirming or even commenting on this we have seen rates of exchange remain buoyant.
We also saw the slip from their most recent meeting on interest rate change remain the same, with a 8-1 split between the members.
Moving forward eyes are now on the European Central Bank and their latest updates. There is a view we could get more information on any expansion to their QE program weakening the euro making it cheaper to buy. I personally however expect this to also be a none event with little change. This will probably come next week when a host of economic data is released from both sides of the channel.
If you would like more information on this topic, the timing of transfer or live prices please feel free to contact myself, Steve Eakins via [email protected]