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Could this weeks Inflation & Unemployment Data impact GBP exchange rates considerably? (Joseph Wright)
Inflation levels from within the UK have been a key talking point in recent months, and I’m expecting the levels of inflation to have an impact on GBP exchange rates in the upcoming months so the data is certainty worth keeping an eye on.
The Bank of England has a 2% Inflation target and this level is likely to be tested as the year progresses due to increasing price of goods coupled with the Pounds steep fall over the past year. A weaker Pound results in imported goods becoming more expensive than previously, and I think the predicted 1.9% (annually) could be exceeded tomorrow when the figure is released at 9.30am.
The reason this figure is being watched so closely is an overly high inflation level is likely to result in an interest rate hike from the Bank of England, which would in turn increase the Pounds value especially if the hike comes as a shock.
On Wednesday the governor of the Bank of England, Mark Carney will be speaking from 9am. During this time the Claimant Count Change for March will be announced which demonstrates the number of unemployed people in the UK. Should the figure come out worse than the 3000 new claimants expected I wouldn’t be surprised to see the Pound fall.
Now that Brexit is underway I believe that economic data is going to take a prominent role in the Pounds value, which is something we haven’t seen much of over the past year as politics have taken a key role.
If you would like to be kept up to date with key events that can move market, do feel free to get in touch with me.
If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well worth your time getting in contact with me on [email protected] in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.
Source: http://www.poundsterlingforecast.com/2017/04/10/could-this-weeks-inflation-unemployment-data-impact-gbp-exchange-rates-considerably-joseph-wright/
