Where you will be able to keep up to date with all the latest changes in the currency market
Sterling was lower against the US dollar and the Euro due to the votes of no confidence against Boris Johnson despite his victory in Monday’s confidence vote. He had the most votes of no confidence there has ever been in the government’s history. Anytime there is a form of uncertainty within the government
there will be massive volatility within the market. This Tuesday we have unemployment figures coming out in the UK. If the figures come out lower than expected then we could expect to see further GBP weakness. Yet if the figures come out higher than expected then this could strengthen the pound.
The Euro has also been off to a weak start as we enter the second week of the month. Mentions of an interest rate hike from the ECB saw the euro fall to near lows we haven’t seen since the beginning of the month. The European Central Bank finally signalled a rate hike for July, with potential for more action in September. If the rates are hiked as mentioned then this will encourage saving and discourage spending. This week we have German inflation and employment numbers for Britain. If the German inflation figures come out higher than expected then we could see this potentially help strengthen the Euro however if they come out lower than expected then we could see some potential Euro weakness.
We have seen more dollar strength over the last 2 weeks as some Russian troops are refusing to return to fight in Ukraine because of their experiences on the front line at the start of the invasion, according to Russian human rights lawyers and activists. Now, this could lead to some potential dollar weakness as if more and more Russian troops refuse to fight this could lead to a partial end of conflict. However, if war continues within Ukraine we will see further Dollar strength like we have done over the last 4 months since the start of the invasion. With unemployment figures and the Feds monetary policy statement out this week we could definitely expect to see massive volatility with the greenback in the coming days.