Quarterly Inflation Report and Carney Talks – GBP Exchange Rates
This morning the most important economic data set for Sterling this week is due. We are expecting the inflation report to show that the price of goods and services are increasing at a steady pace in line with the Bank of England’s (BoE) target level of 2% which should be positive for Sterling, however it will be the accompanying statement from BoE Governor Mark Carney as he could provide yet more forward guidance or maybe even place less emphasis on his forward guidance. Either way the expectation is he will again try to quell the idea of an interest rate rise which may cause Sterling weakness so today we could see a very volatile period for the Pound making it a key day for anyone looking to make a currency transfer. Since we hit the highest levels on GBP EUR for over a year a couple of weeks ago Sterling has slowly dropped mainly due to the fact that Mark Carney is talking down an interest rate rise which had previously been priced into the markets.
So, if you would like to discuss today’s key announcement and how it may impact upon your currency requirements please call one of our senior currency traders today on 0800 328 5884 or if calling from abroad call us on 0044 1494 725353, alternatively you can email me directly on firstname.lastname@example.org