Latest market insights:
Last week saw the latest round of central bank decisions. Both the Bank of England and the European Central Bank kept interest rates unchanged, while the US Federal Reserve made a small cut of 0.25%. Markets now expect the Bank of England to follow suit next month, with around a 70% chance of a similar rate cut.
Why does this matter? Rate changes can have a direct impact on exchange rates, especially the strength of the pound. If the UK does lower rates, we could see the pound weaken, potentially affecting how much you’ll need to send, or how far your money goes, on your next transfer abroad.
In the US, there’s also movement on the longest government shutdown in history, which looks close to ending after progress in the Senate. When a previous shutdown ended, a wave of delayed economic data came out at once, creating volatility in the US dollar. If that happens again, we could see sudden shifts in global markets.
Looking ahead, this week’s UK economic data will be closely watched, particularly the latest labour market figures and Q3 GDP results. These numbers come just two weeks before the government’s Budget, and any surprises could influence both policy decisions and the pound’s direction in the short term.
What events might move exchange rates this week?
Tuesday:
- Average earnings (UK)
- Claimant Count (UK)
- Unemployment Rate (UK)
Thursday:
- Q3 GDP (UK)
- Manufacturing & Industrial Production (UK)
- Inflation data (USA)
Friday:
- Employment Change (EU)
- Q3 GDP (EU)
- Producer Price Index & Retail Sales (USA)
If you’re planning to send money abroad and want to understand more about how news from around the world could impact your budget, contact Lumon on +44 (0)204 506 5672 for a free, no-obligation conversation and discover what options you have available to help.
