Hope you’ve been well the past month and enjoyed the raft of bank holidays. Do let me know if you find the updates useful or whether they end up deleted/in your junk. If you do like the updates I’ll make an effort to do them more often and try to make it interesting 😊
Around 14-month highs across the major currency pairs with the expectation rising that the UK will be rising interest rates from 4.5% to 4.75% on Thursday, the highest hike since 2008. It’s the only way we are going to combat inflation with ours remaining the highest in the G7. As always, the main focus will be on Thursdays press conference and how the governor of the Bank of England (Andrew Baily) feels on the day… If he’s in a glass half empty state of mind (as per usual) expect to see the rate tail off towards the end of the week.
Essentially going to copy and paste the above! The European Central Bank (ECB) raised interest rates by 0.25% last Thursday, to the highest level in 22 years, and largely pencilled in another increase in borrowing costs in July. However, ECB’s chief economist Philip Lane stated that it was too soon to commit to another hike in September. Nevertheless, several of his colleagues have already expressed the view that underlying inflation remains stubbornly high, and more tightening is needed.
Rubbish! Normally great for all the importers amongst you with GBPUSD trickling higher however bad weather in India halting freight coming out of Mundra and a general slowdown in the Chinese economy means that we are all chomping at the bit to get the ball rolling and take advantage of the rate!
Have a good day all, will be in touch soon