The financial markets are battling with feelings vs facts this week, as government speculation and economic data are the driving forces behind any potential currency movements.
UK Chancellor Rachel Reeves has hinted taxes could rise when she announces her Autumn Statement on 26th November. Speaking in a routine media round this morning, she refused to repeat her previous pledge from last year that she won’t be “coming back for more tax”, instead choosing to point out that “in the last year that the world has changed”.
Opinion polls for Sir Keir Starmer show only a 13% approval rating, the lowest since polling began. The Labour Party annual conference is in full swing and rumours are speculating that Andy Burnham, the popular Mayor of Greater Manchester, could look to mount a leadership challenge against the current PM.
In the face of political speculation, tomorrow morning the UK announces its latest set of GDP figures. Expectations suggest quarter-on-quarter growth of +0.3%, and +1.2% year-on-year. Though not huge, these figures would have the UK outperforming many other G7 countries and will likely influence pound sterling exchange rates.
On Wednesday, the Eurozone is set to announce inflation figures for September, with market analysts projecting an increase in the annual inflation rate. Anything different could cause movement for GBP to EUR rates.
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.
