In recent weeks, the Pound has remained relatively rangebound against the majority of major currency pairs.
The main focus of our daily blogs is the GBP/EUR pairing and since the Pound broke above 1.1400 at the beginning of the month, there has been less than a 1.5 cent range of movement with GBP/EUR consolidating above 1.1400 and struggling to make much progress into the 1.15’s.
Cable (GBP/USD) has seen a bit more volatility than GBP/EUR, with the Pound dropping off slightly after hitting an 11-month high on the 10th of May.
This week the Bank of England are likely to be in focus as the currency markets try to second guess the Central Bank’s next policy moves along with the direction of the Pound.
The International Monetary Fund and the Bank of England are currently at odds regarding the UK’s economic output with the IMF predicting a decline in output for the UK this year. This would be weakest showing from all of the major economies, but interestingly the BoE is predicting growth this year for the UK economy after previously predicting a recession.
The IMF are in the UK today and will give a press conference this morning at 11.15am to report on their most recent outlook for the UK economy.
At the same time the Bank of England Governor Andrew Bailey along with other members of the Monetary Policy Committee will discuss their reasoning behind the most recent interest rate decision.
Earlier this month the base rate of interest was increased for the 12th consecutive time, and some market analysts believe there is an 80% chance of another hike this summer.
The comments and language used could impact GBP exchange rates, especially if hints at the BoE’s next moves are made obvious in today’s speech.
There will be further speech’s throughout the week from BoE personnel, so it’s worth being aware of the potential impacts they could have on the Pound’s value.
If you wish to be updated in the event of a big market movement for the Pound, do feel free to register your interest with me (Joe).
We are also happy to offer quotations on currency exchanges, and to discuss to various contract types we offer.
You can email me directly on [email protected] with an outline of your plans, and I will be happy to explain how we can help.