020 7898 0500
After a quiet Monday, Tuesday began with a tumbling pound. Responding to fresh jobs data, which showed rising unemployment and fewer open positions across the country, traders sold the pound in favour of euros and dollars. In the space of an hour, the pound dropped 0.4% against the euro and 0.6% against the dollar.
By Tuesday’s end, the pound had recovered most of its lost ground against the dollar, but the euro remained ahead by 0.35%.
Chancellor Rachel Reeves is set to announce a huge investment in housing as part of today’s spending review. This £39bn investment and other national infrastructure projects sent the FTSE 100 to a near record high, as housebuilding companies Persimmon and Barratt Redrow both saw their share prices climb in anticipation, even as the pound dropped.
Tomorrow also brings fresh three-month GDP figures. Though, with the World Bank cutting its forecasts for global growth yesterday, the numbers may not match March’s surprise 0.7% boost.
Today the US will publish its latest inflation figures, which are forecast to climb, driven by president Donald Trump’s tariff policy. A newly agreed trade framework with China may address one of the largest inflationary forces buffeting the US, but with tariff pauses set to expire with countries around the world next month, the dollar may face a tumultuous time.
Following last week’s US jobs data showing a softening of the labour market, it was surprising on Tuesday to see that small American businesses are recovering their optimism for the economy. The survey data published by the National Federation of Independent Business showed business owners were almost as optimistic as they were in February. Though inflation remains their biggest concern.
The euro was Tuesday’s winner, gaining 0.4% on the pound early in the morning and retaining most of that lead to end 0.35% up by the end of the day. After some rises and falls against the dollar, it ended Tuesday just ahead of what it started.
Today sees Polish Prime Minister face a no confidence vote. While he is expected to win, he will be left paired with newly-elected right wing president Karol Nawrocki. The new president has a powerful veto that will obstruct most of Tusk’s plans to reform Poland and tie it more closely to the EU.
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: Jobs data sends pound tumbling
Driven by figures showing increased unemployment and a shrinking jobs market, Tuesday began with the pound’s exchange rate rumbling against the dollar and euro. It recovered against the dollar through the day, but remained 0.35% behind the euro.
GBP/USD past year
EUR: Euro remains steady, but no-confidence vote looms
The euro climbed on the pounds losses yesterday and remained ahead of the dollar on Tuesday. However, today sees Polish prime minister face a no confidence vote and may cement the new right wing president’s ability to block Donald Tusk’s moves to strengthen ties with the EU.
EUR/USD past year
USD: New inflation numbers threaten the dollar
The dollar gained on the pound on Tuesday morning, but lost most of that lead through the day. This afternoon, new inflation data will reveal some of the impact of president Donald Trump’s tariff agenda.
USD/GBP past year
For more on currencies and currency risk management strategies, please get in touch with your Smart Currency Business account manager on 020 3918 7255 or your Private Client account manager on 020 7898 0541.
