Sterling was little changed against the euro over the course of last week, bobbing up and down by half a cent without ever really threatening to break the deadlock. The pound ended Friday still close to a two-month low – the result of several weeks of damaging economic and political news.
For those of us that spent the weekend glued to the Ryder Cup action, the European team’s narrow victory at Long Island brought a timely tonic. There won’t be much fraternal sprit in currency markets today though (there never is), and pound sellers will be hoping that the UK’s economy can finally execute a turnaround on the back nine.
In sport and in currency, there’s no such thing as a guarantee. Sterling could weaken or strengthen this week, which is why we always suggest you lock in today’s rate to protect your money. Give us a ring on 020 8003 4915 and you’ll be directed straight to one of our account managers who will able to assist you.
There isn’t much data to influence the pound this week, but inflation will be very much on the menu for the euro area. Germany, Italy, and France are all lining up their latest figures, with the latter most likely to ruffle some feathers as the crisis in French parliament rumbles on. The combined eurozone inflation data for September will be released on Wednesday morning.
The United States saw some positive data last week, both in the growth and inflation departments. This week’s latest reports from the jobs market could prove even more significant and set the stage for further interest rate cuts.
All that will be academic if Congress can’t agree to a spending plan by midnight on Tuesday. Should that happen, the American government will “shut down”, a peculiar quirk of the political system that really happens far more often than it should. Media reports suggest that Trump will use this opportunity to relieve yet more government workers from their posts as part of his cost-cutting drive.
