Latest market insights:
Sterling remains under pressure against the euro and US dollar, and this week’s data could drive further movement.
- On Wednesday, the UK releases its latest inflation figures, with expectations sitting at 3.6%. While this is an improvement on the current 3.8%, it remains well above the Bank of England’s 2% target, meaning any surprise in the data could create volatility.
- The Eurozone will also publish its inflation update on Wednesday. With inflation sitting close to the European’s Central Bank’s target, policymakers are not signaling any immediate changes to monetary policy.
- Later that evening, the US Federal Open Market Committee will release minutes from the latest Federal Reserve (FED) meeting. Markets are increasingly pricing in a rate cut at the next policy meeting, so investors will be watching closely for any clues from the minutes.
What events might move exchange rates this week?
Wednesday:
- Inflation data (UK)
- Inflation data (EU)
- FOMC release minutes (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.
