The Pound's rally continues but with Super Thursday fast approaching, what will investors make of the BoE's latest quarterly inflation report? The below table provides exchange rate movements for a number of currency pairs year to date (YTD).
|Currency Pair||% Change||Difference on £200,000|
Sterling exchange rates were trading in positive territory across the board yesterday after some early morning economic figures gave the currency a boost.
The British Retail Consortium (BRC) released the retail sales figures which came out much better than expected at 5.6%, which is why the Pound climbed as a figure of 0.5% was expected.
Although the figure was aided due to the increasing prices of food in the UK and the Easter bank holiday, the figure demonstrates the UK’s strongest result since 2006 which is why the Pound was boosted. It’s worth noting that the BRC commented on the figures being distorted due to the Easter holidays.
The Pound is already trading at its highest level so far this year against a number of major currency pairs, with the GBP/CAD, GBP/AUD and GBP/USD exchange really standing out due to the gains over just the past month.
In just the last week alone a £250,000 to Aussie Dollar transfer would gain over AUD$13,500 to give clients an idea of how big the boost to the Pounds value has been.
Apart from economic data such as this morning’s retail sales figures much of the increased sentiment towards Sterling can be put down to the decreasing levels of uncertainty surrounding the UK’s plan for the Brexit, with the snap election likely to be won by the conservatives it will allow the current UK government to carry out its Brexit plans.
This Thursday is the busiest day in the calendar for the UK, as the Bank of England’s most recent interest rate decision will be announced, followed by the Minutes afterwards which may offer indications of future monetary policy. The BoE’s Quarterly Inflation report may also offer indications of future interest rate changes so expect movement between GBP exchange rates this Thursday.
Get in touch with your broker ahead of the big event on Thursday to limit your exposure to any surprises from the Bank of England. If this is your first time trading, you can sign up for your free account here and one of our team members will be in touch.
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