This Pound Sterling forecast discusses the latest factors that could impact the value of the Pound and discusses recent news from the Bank of England, the ONS and Mark Carney. To see current foreign exchange rates please visit our live exchange rates page.
An external member of the Bank of England Monetary Policy Committee (MPC) Michael Saunders yesterday suggested that the UK economy is in a much stronger position than many economists have suggested.
Saunders joined the MPC after the decision to cut interest rates in August and in his first comments since becoming a member argued jobless rates and wage growth hold the key to future decisions.
Saunders believes that an increase in jobless figures would result in a rate cut once more, however wage growth would encourage a rate hike. He finished by saying that whilst short term data had been stronger than anticipated the MPC may be forced to act again this year as their forecasts are inconclusive for the longer term.
Yesterday the Office for National Statistics Chief Economist Joe Grice reiterated the point that the referendum result so far appears not to have had a major impact on the UK economy. However he did warn that the latest services data which accounts for three quarters of the UK economy was due next week and hadn’t been considered. The first major release of data for the whole three months after the Referendum will be available on the 27th October.
The Governor of the Bank of England tonight will make a speech in Berlin. Carney has taken a lot of credit for the UK avoiding a recession suggesting the main reason for the UK’s good data recently is because of the actions taken by the Bank. Normally when Carney delivers a speech, sterling tends to weaken however the good news of late for Sterling might cause this trend to change.
There have been major market movements since the vote and it looks likely to continue for the considerable future. Keeping in contact with your account manager here will make sure that we can work in your interests with both timing and achieving the best rate of exchange.
For more information on how upcoming data releases or events could impact exchange rates please contact or currency brokers on 01494 725 353 or email me directly here firstname.lastname@example.org.
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