17/03/2020

GBP loses out again


GBP

 Sterling fell to five month lows after the US rate cut as investors resumed their rush to pour into safe haven currencies. The next Bank of England Meeting is taking place on 26th March and money markets are beginning to price in the likelihood of the bank following in the footsteps of the Federal Reserve, signalling an interest rate cut alongside a restart to the quantitative easing programme. The probability of a 25 basis point cut is now at 30%.

On Tuesday, the British Chambers of Commerce said that Britain’s economy looks on track to grow by the smallest amount since the financial crisis as the coronavirus outbreak threatens to drag major economies into recession.

The world’s fifth-biggest economy looks on track for growth of 0.8% this year, the BCC said, downgrading its forecast from 1.0%. The forecast was finalised after British authorities unleashed a major fiscal and monetary stimulus plan last week to help shield Britain’s economy from the coronavirus outbreak.

Key Announcements


11.30 – Annual Budget Release.

12.30 – CPI MoM; Forecast at 0.0% against previous of 0.1%.

12.30 – Core CPI; Forecast same as previous at 0.2%.


Why choose RationalFX?

Based in the heart of London’s financial district Canary Wharf, RationalFX has traded over $10billion in currencies across the globe. Take advantage of our competitive exchange rates, market expertise, suite of FX products and online payment platform when you make bank to bank transfers in over 50 currencies worldwide.

Whatever your reason for making overseas payments, we’re confident our currency specialists can save you time and money while providing peace of mind. Call our team now on: +44 20 7220 8181