UK Inflation Hearing – GBP Exchange Rates
This morning the main economic data is the latest UK Inflation hearing where Bank of England (BoE) Governor Mark Carney will speak to the Treasury Select Committee. The expectation is that Mr Carney will face his first real test as head of the BoE as it is expected he will face a grilling over the latest exchange rate scandal where it was alleged that some of the major banks were involved in fixing exchange rates and that some officials at the BoE knew of this practice. This line of questioning could take any gloss of what is likely to be a mainly positive report on UK inflation. Mr Carney should be able to report that inflation remains on target for the UK and that the overall economic outlook is very positive, following on from the news yesterday that the British Chambers of Commerce believe the UK will be back at pre recession levels this summer. Yesterday we saw Sterling suffer, falling against a number of the major currencies most notebly the Euro which has presented a good opportunity for clients looking to sell Euros. So, should this mornings hearing focus on the negatives we may see Sterling under more pressure while a positive hearing may give Sterling a much needed boost.
This afternoon we have the latest Gross Domestic Product (GDP) estimate from the National Institute of Economic and Social Research (NIESR) which is a rolling 3 month forecast for the UK. The expectation is that it will show a strong figure still although it will be interesting to see whether they believe the recent floods will have a damaging effect on the UK economy. This data set is due for release at 3pm this afternoon.
New Zealand Dollar (NZD)
Tomorrow evening we have the latest New Zeland interest rate decision and it is expected that the Reserve Bank of New Zealand (RBNZ) will increase interest rates from 2.5% up to 2.75% which may bring some NZD strength and therefore good opportunities to sell Kiwi Dollars. However, as this is expected should the RBNZ not hike rates then we may see a spike in GBP NZD exchange rates which could mean some excellent opportunities to buy New Zeland Dollars.
So, if you need to transfer money internationally make sure you speak with one of our senior currency brokers today who will be happy to discuss your currency requirements and the different options available to you. You can call straight through to our trading floor for free on 0800 328 5884 or if calling from abroad call us on 0044 1494 725353 alternatively email directly on firstname.lastname@example.org