Pound jumps up again on UK inflation

Higher interest rates are good for a currency.

UK inflation has come out higher than expected this morning.

While bad news for consumers, it’s good news for the Pound (and good for those of you looking to buy Euros when buying French Property).

The trend in GBP/EUR has been positive in 2023.

It’s been helped along by the UK’s high inflation rate and subsequent interest rate hikes.

Higher interest rates are good for a currency.

The markets have been pricing in an 84% chance of another interest rate hike at June’s meeting.

Inflation is still the big bad wolf in currency markets.

In Europe, the ECB President (Christine Lagarde) is determined to win the inflation battle.

“We will be courageous” she said this week.

It’s hard to tell the difference between courage and stupidity most of the time. Either way, the ECB’s tough stance will help to underpin the Euro over the coming months.

In the US, the debt ceiling drama continues.

While the odds are high things will get resolved, the consequences could be catastrophic if no compromise can be reached. For now, the US Dollar remains in limbo.

So what next, what should you do?

As always, new events lead to opportunities and risks.

Do get in touch with the Key Currency team regarding any upcoming payments.

We will be happy to assist and help make the most of your money.

Call us on 01872 487 500.

Benefits of using Key Currency:

Great exchange rates
Quick and easy transfers
No transfer fees
Expert help and guidance
Authorised by the FCA

Current rates:

Wednesday 24th May 2023 at 11:30

£1.00 GBP = 1.1512 EURO

£1.00 GBP = 1.2380 USD

£1.00 GBP = 1.8852 AUD

£1.00 GBP = 2.0221 NZD

£1.00 GBP = 1.6780 CAD

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