Important day for Sterling exchange rates – Unemployment, wage growth and comments from the BOE

Today we have a fairly important day for Sterling exchange rates.

Today’s unemployment and average earnings figures will be key for Sterling’s performance for the rest of the week, not only is it a key economic data release for the U.K but it will also be closely watched by the Bank of England too, as this data will have an impact on their next move on interest rates.

Average earnings figures will be the key figure they will be looking for improvement on, one of the key sticking points for the BOE is the fact that average earnings (the increase in peoples  earnings) is still a way behind the pace of inflation (the rise in the cost of goods and services) which could cause trouble for the economy going forward, especially should the BOE make any changes to interest rates.

Essentially, an increase in average earnings may lead to the Pound having a nice boost tomorrow morning as it may increase the chance of an interest rate hike coming for the U.K, should average earnings remain the same or drop off then the Pounds may weaken, as it may kick the chances of a rate hike further down the road.

Later in the day we have several members of the Bank of England speaking too, and should they continue their hawkish (or positive) stance on interest rates then the Pound may have a good solid day ahead, equally should they dampen expectations then we may see a drop off and lose the gains that were made yesterday.

We did see positive gains yesterday following news that the EU Parliament may be considering giving Britain privileged access to the single market, this was seen as positive Brexit news and even the slightest hint of positive news regarding Brexit can give Sterling a boost.

If you are looking to buy any foreign currency with Sterling or should you need to bring a large sum of foreign currency back into Sterling then it is well worth getting in touch with me directly.

I can help you both in terms of timing your transfer, keeping you up to date with any spikes in the market and of course getting you the best rate when you come to book the deal out.

For a free, no obligation discussion on how I can help you with this important decision please feel free to email me (Daniel Wright) on djw@currencies.co.uk and I will be happy to get in touch with you personally to see how I can help.

UPDATE 

U.K unemployment has risen from 4.3% to 4.4% and wage growth has remained at 2.5%. This has led to a small drop int eh value of Sterling but nothing too major. Contact me today for further thoughts!