Could this week’s busy schedule push GBP exchange rates out of their comfort zone?

GBP AUD Dips Again Ahead of BoE Rate Decision

Sterling exchange rates have been gradually climbing against the majority of major currency pairs in recent weeks. The change in government leadership, and financial planning in September has helped this cause and resulted in a steadier Pound.

To put this into perspective, the rate for cable (GBP to USD) is currently trading close to it’s 6-month high after recovering from the lowest levels on record in late August and early September.

Additionally, the GBP to EUR exchange rate is trading towards the highest levels in 3-months and it’s traded within a thin range for over 3-weeks now.

This week, there is a plethora of economic date set for release which could carry to potential to create market movement should there be any surprises. Perhaps the main release will be the Bank of England’s interest rate decision as this will likely be in the news the most, but there are other releases I think our readers should be aware of.

The Bank of England will release it’s most recent decision on interest rates on Thursday at midday as usual. The expectation, and the guidance we’ve received is that there will be a hike with the most likely outcome being a 0.5% hike from the current level. There are some analysts that believe there could be a hike of 0.75% though, which would likely result in a reaction from the Pound as 0.5% is being priced into the Pound’s value.

Our systems allow us to set up rate alerts so if you would like to be notified if the Pound jumps (or drops) in value then please feel free to register your interest with me.

Before Thursday there are other potential market movers set for release also in my opinion. Tomorrow morning the latest CPI inflation figures will be released, with inflation being a key talking point at the moment. In October it was recorded at 11.1% and it’s expected to ease slightly to 10.9%. This is worth following as a surprise can influence Sterling exchange rates.

This morning the Bank of England will also be in focus as they will release the Financial Stability Report.

If you’re planning on making a currency exchange involving the Pound and you’re looking for insight regarding the Pounds potential market movements against other currencies, please feel free to get in touch on me (Joe) on [email protected]

Our brokerage has access to competitive exchange rates and a number of different options which may be of interest, so it’s worth getting in touch.