020 7898 0500
Currency markets raised their bets on an interest rate cut at the Bank's next meeting.
Sterling weakened against its peers on Wednesday, weighed down by cooling inflation and renewed confidence that the Bank of England would cut interest rates next month.
There was still enough trepidation within markets to prevent any serious losses. US markets found their attention split between key earnings reports by Nvidia and Walmart and this afternoon’s non-farm payrolls data, the first in almost two months.
Chip giant Nvidia had a chance to calm or inflame market jitters around AI spending yesterday evening. As the rest of the tech sector experienced a sell-off, Nvidia report bumper chip sales that boosted revenue figures $3 billion beyond Wall Street forecasts. Bubble? What bubble?
House prices in London fell to a two-year low in September, according to the Office for National Statistics (ONS). Average prices in the capital fell at an annualised rate of 1.8% amid a steep fall in posh areas such as the City and Kensington. The average price still sits at almost £550,000, roughly double the national average.
In a twist that will have surprised few, the UK and the European Union are at loggerheads again over a budget issue. British government ministers have suggested they would be willing to spare £75 million towards the rearmament fund – just one per cent of the EU’s €6.7 billion demand.
The German government has approved plans to launch the nation’s first space programme. Amid communications and logistics threats from Russia, Germany will spend €35 billion on military space infrastructure by 2030, the defence ministry said.
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 account manager on 020 3918 7255 to get started.
GBP: Limited losses
Sterling’s losses were quite limited on Wednesday considering the significant fall in headline inflation from 3.8% to 3.6%. All told, the pound lost a little over half a cent to the US dollar and managed to maintain its poise against the euro.
GBP/USD: the past year
EUR: Mirroring the pound
The euro’s path against the US dollar was notably similar to that of the pound on Wednesday. As some minor inflation data rolled across the ticker, the euro struggled to break the pattern of a pretty passive November.
GBP/EUR: the past year
USD: Minutes make an impact
The FOMC latest meeting minutes helped support the US dollar yesterday and overnight. After a hawkish cut, it was no surprise to see the Fed’s caution greeted with dollar strength, although there remain a few members who believe the risks are to employment rather than inflation.
EUR/USD: the past year
For more on currencies and currency risk management strategies, please get in touch with your Smart Currency Business account manager on 020 7898 0500 or your Private Client Account Manager on 020 7898 0541.
