Markets were awry yesterday as the US inflation accelerated more than expected to 3.5% in March, compared to 3.2% in February and forecasts of 3.4%.
The US dollar soared over one per cent against the pound and euro following this announcement and the USD/GBP pairing soared to a two-month high.
Another currency flattened by strong US data was the Canadian dollar, which weakened close to a five-month low yesterday as the strength of the US dollar overshadowed the Bank of Canada’s decision to hold key interest rates at 5.0%.
Yesterday, European Parliament president, Roberta Metsola, said ‘history made’, as the vote to pass changes to the asylum and migration pact after eight years of deadlock. The vote has been criticised by NGOs, far-right, and far-left activists. Metsola called the pact, a “balance between solidarity and responsibility.”
The Home Office revealed that the cost of a new or renewed UK passport will increase for the second time in 14 months, after being unchanged for five years. From today, the new cost for an adult online application is £88.50 and £100 by post.
Today, all eyes are on the European Central Bank which is due to make its latest interest rate decision just after lunch. Market forecasts suggest the rate will remain unchanged at 4.5%, where it has remained since September 2023.
Later in the day, US PPI figures for March are expected. Current forecasts expect the index for final demand to have grown by 0.4% month-over-month in March, following the largest increase of 0.6% since last August in February.
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