The US dollar fluctuated by just under half a cent against the pound yesterday in the absence of higher-tier data releases, ending the day marginally down.
While marginal movements might not seem drastic, they all add up. For example, the pound is currently trading approximately 1.3% higher than this time last month against the euro. That means if you were to transfer £500,000 today, you’d get almost €7,000 more for your money than you would in late December.
Why not lock it in with a Forward Contract? To do so, talk to your account manager today on 020 7898 054.
US stock the S&P 500 soared to a fresh record high yesterday, adding 0.4% on Monday. The Dow Jones also broke records by adding 120 points and the Nasdaq 100 gained 0.7% to break a fresh high. These gains are the result of enthusiasm in the tech sector as megacaps Amazon, Meta, Nvidia and Microsoft saw shares increase to reported all-time highs.
It’s been a quiet start to the week in terms of economic data with no major releases of late. Early this morning, the Bank of Japan chose to keep interest rates on hold at -0.1% as widely expected. The Japanese rate has been unchanged since 2016.
UK government borrowing fell to £7.8bn in December, potentially giving chancellor Jeremy Hunt room for more tax cuts in the March budget.
Tomorrow, economists will receive flash PMI readings for the German manufacturing industry, which is forecast to increase to 44.0 from 43.3. If this goes to plan, it will reflect growth since this time last month but would remain in contraction territory, as do all readings below 50.
We will also receive the latest flash PMIs for the UK from S&P Global which will deliver the services, composite and manufacturing readings which are expected to increase slightly across the board.
This week’s big release comes from the European Central Bank which is due to announce the latest interest rate. Read more on that below.
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.
