Will a u-turn be coming for the current government?
Three weeks ago the Chancellor Kwasi Kwarteng announced his mini-budget. This caused a huge sell off for Sterling exchange rates.
It also caused an issue for bonds and UK mortgages.
However, since then the Pound Euro and Pound US Dollar has also improved.
Indeed, Sterling Euro rates are currently close to a 2 month high creating some excellent opportunities to buy Euros with Pounds.
The Bank of England recently stepped in and spent a huge amount of money to support the markets.
However, that support is due to end later today.
The government has previously said it won’t do a u-turn but many MPs and backbenchers have suggested that they will.
The Chancellor is due to be returning to the UK early following a trip to the US. Expectations are also rising that Kwarteng may also change his policy on corporation tax.
Will US Retail Sales cause the Dollar to strengthen against Sterling?
Turning the focus back towards economic data and we have the latest release of US Retail Sales data this afternoon.
As the world’s leading economy this will provide an insight into the health of its economy.
Often, if the data is better than expected then this can result in US strength and Euro weakness so watch out for this space later today and its impact on GBPEUR exchange rates.
The expectation for today is that September Retail Sales data are due to support the Dollar.
This should also give further support to the Federal Reserve and its plan moving forward to increase interest rates.
If you have a currency transfer to make buying or selling Euros, Dollars or Sterling then contact me directly for a free quote.
I have worked in the industry since 2003 and I look forward to hearing from you.
Tom Holian [email protected]