Busy Day For UK Economic Data – GBP Exchange Rates
This morning there are a number of key economic data releases due for the UK which could affect Sterling exchange rates. The data includes Consumer Price Index (CPI) which is a leading measure of inflation as it shows the change in price of goods and services. Currently CPI is running at 2.8% well above the government set target of 2% and so should the figures today be even higher than this predicted number we could see more concern that inflation is getting out of the Bank of Englands (BoE) control. The best way for the BoE to keep a check on inflation is through interest rates as increasing interest rates theoretically reduces the amount of spending in an economy which helps slow down inflation but the reverse is also true. However, with the housing market still struggling and the economy at a standstill raising interest rates is unlikely so it leaves the BoE in a very difficult position. Following the CPI figures we have Producer Price Index which will give an insight into the manufacturing sector and then the retail price index which is another indicator of inflation and again could be important to dictating the short term Sterling exchange rate movement.
Later on today we also have CPI figures for Europe and America which will give further insight into the performance of two of the key global economies. So, if you need to transfer money abroad and as a result you are looking to buy Euros or buy Dollars make sure you speak with one of our experienced currency brokers today so they can keep you informed of the latest currency news and also examine the options available to you. Our currency brokers are specifically trained to assist clients in sending money abroad and with over 30,000 satisfied clients you can be assured that dealing with us at Foreign Currency Direct means you are in experienced hands.
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