Sterling has continued its recovery in early trading this morning, gaining around half a cent against the euro since Monday morning and now slightly ahead of its position last Wednesday. There has been plenty of movement against the US dollar too, but no clear direction.
On the data front, so far this week we’ve seen both house prices and retail sales weakening, though probably a little less than expected by the markets. The big test, however, will be Gross Domestic Product (GDP) for the UK, which we’ll hear in just under 48 hours.
This could easily move exchange rates if it looks as though the savage effects of interest rate rises are not denting people’s willingness to spend and, therefore, maintaining high inflation.
Speaking of which, US inflation data is out tomorrow. It is expected to rise slightly, but again, any surprises could affect currencies. In China the new problem is deflation, with prices falling by 0.3% year on year in July.
In business news, negotiations will restart in the Hollywood film industry, where actors are striking over the use of their faces in AI (artificial intelligence) created productions. Problems also at WeWork, the flexible office-space provider, which has seen memberships drop by 1% and is reportedly struggling to stay afloat as workers return to offices.
Good news for those with Premium Bonds, however, where the rate has increased to 4.65%, its highest for 24 years. Moreover, there will be 90 prizes of £100,000 each month, a rise from just six in May last year.
Make sure any upcoming transactions are protected against the risks of sudden market movements. Secure a fixed exchange rate now with a forward contract; call your Personal Trader on 020 7898 0541 to get started.
