February done; now onto March!
As alluded to in the subject title it has been a really poor end to February and start of March. Andrew Bailey (Head of the Bank of England) is turning out to be the Liz Truss of the banking world; everything he says/touches turns to coal. Andrew has done a complete U turn on this months predicted interest rate increase and has stated that “nothing is decided” on future increases which has really pushed GBP back in the corner. GBP now trading back under 1.20 on GBPUSD and an equal drop on GBPEUR. Bets are now that we are at 50/50 whether anything will be done come the interest rate decision on the 23rd. Expect GBP to tumble as the month unfolds….
Contrary to the above the European Central Bank are clear that they are determined to raise interest rates. Inflation in Spain and France is rife, two of the Eurozone’s biggest economies…
On the positive summer is around the corner and no doubt we’ve all got plans to have a beer/wine in the sun at some point in the next few months in the EU…!
Strong manufacturing data from China has really help strengthen the Dollar, holding it below the key 1.20 mark. Again following the interest rate theme, the US are due a chunky rise at some point this month much like the Europeans!
Here if you need anything