Bank of England Minutes Released
This morning we have heard the latest set of Bank of England (BoE) minutes which has shown that not only did all nine members of the BoE’s Monetary Policy Committee (MPC) vote to keep interest rates on hold at the current record lows but that they also all voted for no change to the Quantitative Easing (QE) programme. This 9-0 vote on QE has come as some surprise to the markets and as a result we have seen Sterling strength against a number of the major currencies inlcuding nearly a cent gain against the Euro and US Dollar which is currently presenting some excellent opportunities for those clients looking to transfer money abroad. The minutes from July’s meeting was the first with Mark Carney at the helm and clearly shows his influence as previous votes have always been split on QE and now with a new Governor at the Bank all the members of the MPC are voting together. The fact that we are hearing that the BoE are not looking to increase QE at the current time is positive but recent comments from Carney have indicated that we cannot rule out further QE in the coming months so todays spike may not be long lived. However, todays announcement and the recent spate of positive data does bode well for Sterling and could result in Mark Carney’s view on interest rates changing which may in turn boost Sterling. While this is possible I still believe it to be unlikely as a weak Pound will help our exporters which in turn can increase the amount of money coming into our economy boosting UK buinsess, the whole economy and eventually Sterling exchange rates, so in the short term at least it is in the UK’s and therefore Carney’s favour to keep exchange rates low.
If you would like to discuss how this mornings Bank of England minutes could impact upon your currency transfer speak with one of our helpful currency brokers who will be more than happy to discuss your currency requriements and the different options available to you all of which can be tailored to your individual requriements. You can call straight through to our trading floor on 0800 328 5884 or alternatively you can email me on email@example.com
UK Unemployment Falls
There was more good news for Sterling exchange rates this morning as unemployment levels in the UK fell by 57,000 in the past three months. This only goes to add to the recent positive data and coupled with this morning’s minutes has helped boost Sterling exchange rates improve significantly. With more people in work there is more money moving through the economy which as a result could help encourage growth for the UK and have a good longer term impact on Sterling. If you would like to discuss the effect of employment figures on your currency pair please do not hesitate to contact us as we will be more than happy to help. If dialling from abroad you can call us on 0044 1494 725353.