Steady UK retail sales data supported the pound on Friday, giving it the boost it needed against the euro to recover from early August lows. This morning, the pound has made marginal losses but remains 0.4% up since last week.
Against the US dollar, the pound is soaring, adding 1.5% in the space of a week as growth for the UK economy in quarter two and an unsteady dollar saw the exchange rate climb.
This week is relatively quiet on the economic data front. Key data releases include the Federal Reserve’s FOMC minutes on Wednesday and Germany’s manufacturing PMI on Thursday.
Our key currencies are likely to be sensitive on Thursday to the outcome and response to the latest global PMI surveys. Any signs of continued resilience in the UK could prove useful for the GBP/USD pairing.
Ending the week, we’ll hear from Fed chair, Jerome Powell, and Bank of England governor, Andrew Bailey at the Fed’s Jackson Hole Symposium on Friday.
As ever, the markets are inherently volatile. While the pound remains strong, it could be the day to get your exchange rate fixed to lock in its recent gains. To do that, call your account manager on 020 8108 5163.
As growing numbers of countries consider taxing the super-wealthy, the Tax Justice Network campaign group said trillions could be raised globally with a ‘featherlight’ tax on the 0.5% of the world’s richest households. Spain already has a similar system in place.
This week the Democratic National Convention kicks off in Chicago, and vice president Kamala Harris is expected to speak alongside former presidents Joe Biden, Barack Obama and Bill Clinton. As data releases remain light, economists will be listening out for any curveballs which could have the potential to move markets.
If you have any large upcoming transactions, speak to your account manager about the benefits of a forward contract and how they can offer peace of mind in a volatile market.
