This morning’s inflation data from the Office for National Statistics will have disappointed the government, which needs it to fall considerably to achieve the target of 5.1% by the end of the year. The figure of 6.7% was the same as last month, although core inflation (without food and fuel) fell to 6.1%.
It will also have disappointed the Bank of England interest rate setting committee, the MPC, who had hoped to have made enough interest rate rises to curb inflation more.
One group it might not disappoint, however, is anyone with a large transaction in euros coming up in the near future, as the GBP/EUR rate was boosted this morning by the news.
To fix this rate – now around 0.15% stronger than last night, call your trader on 020 7898 0541.
Another price that is still rising fast is gold, which hit a four-week high yesterday. Gold is regarded as a safe haven in troubled times, which we are certainly in now.
The currency that investors put their money in as a safe haven is generally the US dollar and to a lesser extent the euro. Not so much sterling these days, the British economy being so much more bound up with services and stock markets. Hence the apparently-worsening Middle East situation could hit the pound.
Do call your trader to discuss your range of options, or register for an account if you have not yet done so.
