Where you will be able to keep up to date with all the latest changes in the currency market
Last week we saw an overall decrease in strength for the pound against all major currencies with the rate dropping by 1-2% against the Dollar and 1.5% against the Euro. This sharp drop is a result of UK interest rates being hiked for the ninth time in a row with the Bank of England raising the rate from 3% to 3.5%, the highest level for 14 years. The UK interest rate decision combined with important economic data for the US and Eurozone has caused this downtrend for the Pound. This week we have GDP data coming out on Thursday which depending on the outcome could weaken the pound even further, generally speaking a rising trend in data would be seen as a positive effect on the GBP while a falling trend will continue to weaken the Pound. There is further data out this week for other major currencies which as we’ve seen in the past can have a real impact on the GBP and cause a volatile market therefore attention will be on the data for US and Euro as well.
Last week we saw a resilient and stable performance for the EUR against all major currencies, especially the GBP. There was a rate decision on deposit facility for the Eurozone last week in which economists expected the ECB to raise rates by 50 bps after two consecutive 75 bps hikes. This week we have no real important economic data being released however the ongoing war in Ukraine will continue to create volatility in the market. Ukraine was dealt a massive blow last week as a Russian missile barrage destroyed Ukraine’s civilisation infrastructure leaving many Ukrainians without light, power, or heat. in result of this Ukrainian president Volodymyr Zelensky renewed his plea for air defence support which could cause even more uncertainty for the Eurozone.
Last week we saw an overall positive week for the USD with rates rising by 0.5-1% against all major currencies. It was a full week for the Dollar last week with multiple sets of data coming out with the likes of CPI data, interest rates and retail sales all being released over the course of last week. Despite the US central bank mirroring the UK’s fight against inflation by increasing the interest rate it seems to have had the opposite effect as it has strengthened the USD against the Pound. This week we have GDP data coming out on Thursday for the US, although this is normally a market mover as it is the last quarter the data may not have as much of an impact on the dollar as the first quarter set. As well as this there is durable goods order released on Friday which generally speaking a high reading is bullish for the USD whereas a lower reading would be seen as a negative.