Currency News 23.05.2018

GBP: The bank that cried wolf

Sterling was given a temporary lift yesterday after a fairly upbeat message from the Bank of England to the Treasury Committee of Parliament.

The BoE remains adamant that rate rises are coming but investors have heard that message many times before and are understandably wary.

Today we have had a very important release with the latest inflation figures. Expectations were for UK inflation to remain flat at 2.5% but the recent trend towards the downside continues with a 2.4% figure, erasing all the gains made by Sterling in the last few days.

EUR: Fear of the unknown

The Euro weakened against its most of its major peers yesterday.

At the moment, worries about Italy have dominated Euro trading. The latest development is that Italy's populist parties look set to appoint a political unknown to become the next prime minister.

Today is all about PMI’s. France, Germany and the Euro-zone are all releasing their latest Manufacturing and Services PMIs, which are indicators of economic health.

USD: At the last minute

The dollar was pretty steady yesterday in the absence of any major economic news.

Investors have been awaiting the minutes of the Federal Reserve’s last meeting for greater clarity on the inflation outlook and future rate rises, which are due out later today.

Meanwhile President Trump may be facing a political setback as he conceded there was a "very substantial chance" he won't meet with North Korean leader Kim Jong-Un next month.

Thanks For Reading, What Next?

To discuss current exchange rates and currency purchasing strategies, please contact your trader today on 01872 487 500.

If you don't yet have an account please request a free quote and we’ll look after you from there.

Have a great day,

Geoff Lambourne - Direct Dial me on 0044 (0)1872 487 470.

Current rates:

Wednesday 23rd May 2018 at 14:15

£1.00 GBP = 1.1384 EURO

£1.00 GBP = 1.3314 USD

£1.00 GBP = 1.7659 AUD

£1.00 GBP = 1.9314 NZD

£1.00 GBP = 1.7176 CAD

£1.00 GBP = 16.8167 ZAR

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