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Following Tuesday’s boost to the dollar, driven by the uncertainty of US President Trump’s fresh tariff confusion, USD slipped back against the pound and euro on Wednesday. It was only a small loss of 0.15% but pronounced as the pound and euro remained almost dead level with one another.
In a sign of the pressure on home buyers in the UK, the Bank of England is allowing lenders to make more high loan-to-income mortgage agreements. These deals let first-time buyers borrow 4.5 times their annual earnings, allowing them to buy more expensive homes. Of course, these are riskier deals, with the borrower having to meet larger monthly repayments.
Meanwhile, fresh data from the Royal Institution of Chartered Surveyors shows that for the third month in a row, house prices in the UK have fallen by 7%. That is lower than market expectations, but only just.
Tomorrow’s GDP data will show how this turbulent year has been hitting UK growth.
Yesterday saw Trump threatened further tariffs to be implemented on August 1, including a 50% levy on Brazil as a punishment for the “witch-hunt” against former right-wing President Jair Bolsonaro. His surprise announcement of a 50% tariff on copper imports also sent the price of the metal soaring to a record high.
Data this afternoon will reveal US jobless claims and analysts currently predict it will rise, although their accuracy on this has been erratic.
Inflation data out of Germany this morning reveals that it has continued to hit its target of 2%.
Make sure any upcoming transactions are protected against the risks of sudden market movements. Secure a fixed exchange rate now with a forward contract; call your Business Account manager on 020 3918 7255 to get started.
GBP: Bank acts to kickstart housing
The pound was slightly up on the dollar on Wednesday, regaining most of Tuesday’s losses. The Bank of England announced looser regulations on mortgage lending to try and help first-time buyers access property.
GBP/USD past year
EUR: German inflation holds steady
The euro was flat against the pound on Wednesday and regained all of Tuesday’s losses against the dollar. German inflation data shows the country has, again, hit its 2% target, a marked difference from the US and UK.
EUR/USD past year
USD: Dollar down as Trump announces fresh tariffs
The dollar slipped against the pound and euro on Wednesday, as the shock of President Trump’s surprise copper tariff wore off. The President also announced fresh tariffs, including a 50% levy on Brazil unless it ends its investigations against former right-wing leader Jair Bolsonaro.
USD/GBP past year
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