The fallout from the Trump administration’s attack on the Federal Reserve reached epic proportions yesterday as a global group of policymakers, including The Bank of England’s Andrew Bailey, issued an unprecedented joint show of support for the independent central bank.
Amid the chaos, sterling has quietly enjoyed a decent start to the week. The pound begins today close to its recent highs against the euro. Despite weakening a little yesterday, there have only been a handful of occasions since September when you would have enjoyed a better rate.
Guessing where things move next is a dangerous game. With some significant UK data due tomorrow, along with the risk of conflicts spreading in Iran, South America and Greenland of all places, we strongly recommend you lock in today’s rate to ensure your money is protected. Give us a call this morning on 020 8003 4915 and our team will be able to set your mind at ease.
For sterling, a positive result in tomorrow morning’s GDP report could lend weight to the more hopeful narrative that has taken hold of late. On the other hand, a disappointing output score would likely lead to sudden movements and have a negative impact on your budget.
The fate of a bespectacled official on the other side of the Atlantic might seem small potatoes, but it has rightly been the main story in currency markets this week. The US dollar’s reputation is tied to a strong Fed free of political interference. Fears are growing that its next chair will prioritise cutting rates ahead of controlling prices.
If you’re interested in reading more about all these mad goings on, you’ll be glad to hear we published our January-March Quarterly Forecast just yesterday. Get your copy today for the most important analysis and bank forecasts, although we’d urge you to take those with a pinch of salt.
And lastly, government ministers have unveiled a major infrastructure project aimed at upgrading rail links in the North and the Midlands. The prime minister announced roughly £45 billion of investment for Northern Powerhouse Rail last night, with the first phase to begin in the Pennines.
