Today sees both the Bank of England (BoE) and the European Central Bank (ECB) announce the latest interest rate decisions and posibly more relevant in the UK whether there will be any further Quantitative Easing (QE). The UK interest rate decision is announces at midday today and the expectation is for rates to be kept on hold however a number of currency market analysts are predicting a possible £50 billion extension of the QE programme. QE is effectively the addition of more money into an economy by the Central Bank buying up more bonds therefore releasing more funds into the market. This tactic has been used a number of times in the past couple of years by the BoE and each time has resulted in Sterling weakness so todays announcement could be crucial for the short-term future of the Pound exchange rates.
Following the BoE’s interest rate decision the ECB will announce their latest interest rate offering at 12:45pm. The expectation here is that another quarter of a basis point cut could occur which may lead to Euro weakness so we are expecting a very volatile day. As a result if you have an upcoming currency requirement please make sure you stay in close contact with your currency broker on 0800 328 5884. Speaking to one of our traders before the first decision at midday will allow you to discuss thoroughly your currency requirements and all the options open to you. We offer a number of contract types so call us today