A busy week for central bankers ended with clearer worries over inflation and the post-pandemic recovery which could see interest rate rises early.
However, overall it was an indecisive week for major currencies, with most approaching the end of the week close to where they started it.
Sterling gained around 0.5% yesterday against the euro and slightly more against USD after the Bank of England’s Monetary Policy Committee (MPC) voted to keep interest rates and quantitative easing at current levels, but warned that inflation could remain high for longer than previously thought. This was regarded as a more “hawkish” tone.
This morning we have seen GfK consumer confidence in the UK take a knock, falling to -13 from -8 last month, and way below expectations.
In the business news, a deal from British Airways to restart a smaller, but profit making, budget short-haul operation from Gatwick Airport has been scuppered after the firm failed to reach an agreement on lower pay for pilots. Wizz Air is reported to have made an offer for the landing slots.
The UK’s “energy crisis” has extended to petrol deliveries, with a pandemic- and Brexit-caused shortage of drivers being blamed for empty petrol pumps.
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