Home > Resource Hub > Daily Market News > GBP could have another soft day

GBP could have another soft day

GBP could have another soft day

The USD has finally found its footing and regained a little strength on the back of a dip in the oil price. Risk appetite rose overnight, and the oil price fell, after Kuwait’s oil minister said OCEP, the Organisation of Petroleum Exporting Countries, members were discussing an emergency meeting that may lead to increase output. Concerns that the recent oil price may hamper the global recovery have weighed on investor sentiment as a shortage in the oil market, and the price spike it would induce, could not only stifle global growth directly but may feed through into inflation causing Central Banks to increase interest rates before the relevant economies are strong enough to withstand it. This is going to be a fine balancing act for the members of the central banks around the world.

Speaking of which the Bank of England MPC meet today for discussions ahead of tomorrow’s rate decision and although expectations are for no change to policy it will be interesting to see if anyone else has joined the three “hawks” in calling for a rate increase. The water has been muddied a little more by data out from the British Retail Consortium (BRC) who overnight reported like for like sales in February were down 0.4%, this is compared to a 2.3% rise in January.

It’s not all doom and gloom though as Germany’s factory orders came in higher than expected yesterday with a month on month increase of 2.9% against and expectation of 2.5%. This takes the year on year increase up to 16% and once again shows that Germany is leading the recovery in Europe. Not that this makes the ECB decision any easier as they have to come up with a policy for everything from Germany’s growing economy to several struggling ones.

Today we have the UK trade balance and the Germany industrial production expected to build on yesterday’s positive data. All in all nothing too positive for the pound and it may be left behind as both the Euro and USD gain a bit of strength.

What does this all mean for me? Well buying your EUR, USD, AUD or any other currency at the wrong time could cost you a fortune. There is no crystal ball but Currency UK can give you the information you need to make an informed decision.

 

Currency UK will then offer you the best exchange rates available and ensure that you subsequent international transfers are handled as quickly and as efficiently as possible.

 

Contact us us now on +44 (0)20 7738 0777 or click here

Share this case study
Set yourself up in minutes, make payments the same day: it’s free, easy and without obligation.