The Pound begun the week in an uneventful fashion after trading within thin ranges throughout Monday’s trading session.
The Pound to Euro exchange rate remains quite rangebound at the moment, mostly trading between 1.1250 to 1.1300 with no signs of a breakout from this range at the moment. This morning is a good example of this trading pattern, with the pair hitting exactly 1.1250 before rising slightly.
Jobs data released this morning has done little to influence GBP exchange rates although perhaps tomorrows inflation data could have a greater market impact. In the early hours this morning UK labour market data showed that the unemployment rate remains unchanged at 3.7%. Job vacancies declined slightly, although it remains at a historically high 1.16m. Despite there being a high number of job vacancies, the drop in vacancies shows the jobs market is easing. Pay growth on the other hand showed signs of climbing and this may put pressure on the Bank of England to continue to hike interest rates.
Looking forward, tomorrow mornings Inflation data for the month of December will be followed closely for clues regarding the Bank of England’s monetary policy moving forward. The BoE has hiked interest rates at their last nine opportunities, and further hikes are expected. The inflation data tomorrow is expected to show a slight drop on the previous figure, although it is expected to remains in the double digits which is well above the BoE’s target. Inflation figures are likely to continue to drive the BoE’s monetary policy and this can impact the Pounds value so this release is worth monitoring tomorrow morning. Do register your interest with us if you wish to be notified regarding any major changes in the Pound’s value.
Aside from the Bank of England’s monetary policy, UK property prices could also influence the Pound’s value this year. A drop in prices is expected, and the UK economy can be heavily influenced by property prices due to the wealth of Brits generally shrinking.
If you’re planning on making a currency exchange involving the Pound and would like to discuss exchange rates along with market insights, please feel free to register your interest with me (Joe) on [email protected]
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