As the UK unemployment rate rose to 4.2% between June and August, policymakers predict Bank of England policymakers will keep interest rates unchanged at 5.25% next week.
Whether economists’ predictions will ring true remains to be seen and as we well know, a lot can happen in the space of a week. Yesterday alone, the pound lost close to 0.6% against the euro and US dollar. Was this due to stronger-than-expected US private sector growth? Maybe, maybe not. It may have been driven by a flight to safety, the US dollar and euro are viewed as safer assets than the pound, given these very uncertain times in the Middle East.
Movements can happen very quickly when speculators pile in (they dominate over 90% of the currency market), so to protect your budget from adverse currency fluctuations, call your account manager on 020 7898 0541.
New figures from S&P Global showed the UK private sector remains in decline as flash manufacturing PMI came in at 48.6 for October. Any number below 50 represents a decline.
The service sector declined for a second consecutive month, with a reading of 49.2. This took the services PMI to a nine-month low. Survey respondents commented on subdued consumer confidence, the impact of high borrowing costs and weak client demand across the sector.
If you have a business with currency requirements, speak to your account manager about how our award-winning business arm, Smart Currency Business, could help you.
