The pound remained strong against major rivals yesterday, adding around a third of a per cent against the US dollar and euro, taking the GBP/USD rate to fresh two-year highs.
This morning, however, the pound-to-US-dollar rate has started to slide. To lock in today’s rate to protect yourself from further volatility, speak to your account manager about a forward contract today on 020 7898 0541.
The support came from Fed chair Jerome Powell’s comments last Friday, which suggested a rate cut is on the horizon for the US central bank. Meanwhile, Bank of England governor Andrew Bailey addressed his concern over the economy’s “intrinsic” inflation. Bailey went on to say that it is ‘too early to declare victory over inflation’.
In his first keynote speech as prime minister, Sir Keir Starmer warned that Labour’s first autumn Budget will be “painful”. Chancellor Rachel Reeves is expected to raise taxes to plug the £23 billion spending gap in the UK that was “hidden” by the previous Conservative government.
Germany’s economic outlook worsened yesterday as GDP was confirmed to have fallen by 0.1% in the year’s second quarter. Consumer sentiment slumped to -22 heading into September, surpassing market expectations of -18 and the previous reading of -18.6.
US stocks fluctuated near all-time highs on Tuesday as investors and economists awaited American tech company, Nvidia’s earnings report and a series of high-level economic data later this week that could fuel the tech and AI rally further.
Former Barclays banker, Thomas Kalaris, lost his appeal against the FCA decision, which bans him from holding senior roles in the industry due to dishonesty findings.
The economic calendar remains light today, however, tomorrow brings German inflation and US GDP Q2 figures. On Friday morning, we’ll receive the latest euro zone inflation figure which is forecast to fall from 2.6% in July to 2.2% in August.
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 account manager on 020 7898 0541 to get started.
