Bank of England Minutes and US Interest Rate Decision

Today could be an important day for Sterling US Dollar exchange rate. Firstly this morning we have the latest set of minutes from the Bank of England’s (BoE) interest rate meeting from earlier this month, this will show what was discussed by the BoE’s Monetary Policy Committee (MPC) who are responsible for setting the country’s interest rates and are also responsible for Quantitative Easing (QE). QE has been a big talking point in the UK over recent years and continues to be a key driver of the currency markets. Should we see in today’s minutes that the MPC voted to amend the amount of QE currently in play then we could see significant Sterling exchange rate movement, on top of this it will be interesting to see how the MPC, under the new guidance of Mark Carney, voted on interest rate decisions.

Later this evening we also have the latest interest rate decision from the Federal Reserve Bank of America (FED). As per the UK’s announcement this will be as important, if not more so, as we could hear that the FED will taper down their current asset purchasing programme (their version of QE). If this happens the markets are split on the reaction we could see from the US Dollar. Tapering means that the FED are confident that the US economy is improving and so we may see some strength come to the USD which may mean the current strong buying levels for the Dollar are going to be short lived today, alternatively there is an argument that this news will encourage investors to move funds to more risky currencies which could mean money leaves the USD and moves to currencies such as the Australian Dollar, New Zealand Dollar and South African Rand. Should we not see any tapering of QE we may see some USD weakness so whatever happens tonight we can be reasonably sure that it could lead to some major currency movement.

So, if you need to transfer money abroad make sure you speak with one of our experienced and knowledgeable currency brokers here at Foreign Currency Direct plc who will be happy to discuss the market outlook with you and the above mentioned key data sets as well as the different options that are open to you and how they can be tailored to your individual requirements. To contact us you can call us directly on 0800 328 5884 or if calling from abroad call us on 0044 1494 725353 or alternatively email me directly on