With the Bank of England’s latest interest rate decision due on Thursday, markets will be eagerly anticipating the release of UK unemployment and average earnings data tomorrow as leading indicators of the health of the British economy.
The unemployment rate currently sits at 4.7% and any movement on this could impact pound sterling exchange rates and BoE’s decision when they meet later this week.
We also eagerly await the latest US retail sales data, published tomorrow. There are already strong signs of economic slowdown in the US, so the big question is will President Trump finally get his way when the Federal Reserve meets on Wednesday to announce their own interest rate update?
Why does this matter?
When the central banks from the world’s leading economies change their interest rate levels, big global investors interpret signals of confidence, or lack thereof, and decide whether they want to move their funds elsewhere.
This in turn impacts the value of the associated currencies, where even the slightest changes in rates can have big impacts on our customers looking to send large sums of money abroad.
This week in the markets:
Tuesday 16th
- UK unemployment and average earnings data
- US retail sales data
Wednesday 17th
- Federal Reserve’s US interest rate announcement
Thursday 18th
- Bank of England interest rate announcement
So if you’re planning to send money abroad and want to know more about what options you have to protect your budgets from currency rate movement, speak to a Lumon currency specialist today. Call +44 (0)204 506 5672 before the news announcements impact the markets.
