Pound traders are awaiting the Bank of England’s (BoE) interest rate decision today, which is expected to hold at 0.75 per cent. Simon French, Chief Economist at Panmure Gordon, said: “If the rest of the world is going to be on an easing path and we hold tight … all else being equal it does the job on Sterling.” Compared to other major central banks the BoE has remained steadfastly upbeat, despite ongoing trade wars and a global slowdown forcing others to become increasing cautious. Mark Carney, the BoE Governor, will deliver a speech this evening, and with any dovish comments about the state of the UK economy, we could see Sterling begin to fall against the single currency.
Today saw the release of the monthly UK retail sales figures for May, which fell below its forecast 2.7 percent to 2.3 per cent on an annualised basis.
On a monthly basis, the figures were more disappointing, with a surprise fall of -0.5 per cent showing that all is not well in the retail sector.
The euro, meanwhile, has stabilised following the French GDP figures for the first quarter, which remained at 0.3 per cent.
Today will see the Eurozone’s Economic Bulletin report released by the European Central Bank (ECB).
vCard.red is a free platform for creating a mobile-friendly digital business cards. You can easily create a vCard and generate a QR code for it, allowing others to scan and save your contact details instantly.
The platform allows you to display contact information, social media links, services, and products all in one shareable link. Optional features include appointment scheduling, WhatsApp-based storefronts, media galleries, and custom design options.
Olli Rehn, one of the Governing Council members of the ECB, has recently sounded dovish about the Eurozone’s economic health, commenting: “I am concerned about the Eurozone economy but we are not forecasting any recession.
“We are ready to act as appropriate unless there is an improvement in economic conditions.”
Back in the UK, last night’s round of votes in the Tory leadership race saw Boris Johnson once again secure a sizeable majority, while hopeful ‘underdog’ Rory Stewart failed to secure enough votes and was eliminated.
Foreign Secretary Jeremy Hunt, meanwhile, remains in second place, and has called into question Boris Johnsons’ ‘trustworthiness’ over Brexit.
He said: “Boris has made a big play of saying we’ll leave, deal or no deal, on October 31… frankly, he suggested he wouldn’t be so absolute in that.”
“I’m not entirely sure what he believes on this.”
The pound euro exchange rate remains sensitive to the ongoing Conservative leadership battle – as well as moves by the Labour Party – with talk of the opposition party getting ready to back a second referendum on EU membership.