Sterling has got off to an unsteady start in the very early stages of the week, but we’ve come to expect that for Monday mornings, especially ones as chilling all round as today.
However, with several high-profile data releases this week, the first will have warmed the markets. GDP data out for October has shown that the UK economy grew by 0.5% for the month, slightly ahead of expectations. What the current cold snap, rail strikes and exit from the World Cup will do for December’s figures, we will have to wait and see.
The chancellor Jeremy Hunt has said that the economy will get worse before it gets better, but everyone knew that already.
For now, the data shows the economy relatively bouyant, and so is sterling. Therefore, to lock in today’s rate before the Christmas rush – and the interest rate decisions of midweek – call your trader on 020 8108 5163.
One assumes that the members of the Bank of England’s Monetary Policy Committee will be chauffeur-driven into work this week, while everyone else has to work their way around rail strikes at least partially caused by their failure to control inflation. Of course, inflation is a global problem, but even so.
The interest rate decision is on Thursday, as is the European Central Bank’s, while the US Federal Reserve’s is the day before. Although 50 basis point raises are pretty well price-in all round, there could still be exchange rate volatility midweek. Do consider locking in your rate now or any plans based on today’s exchange could be scuppered.
