Sterling back above 1.17 against the euro – where will rates go next?
Pound Sterling recovered against the euro yesterday afternoon and climbed back above the key 1.17 threshold. This was preceded by a poor reading of retail sales data from the Eurozone which did not support the value of the single currency.
Eurozone retail sales are down 0.8% on a monthly basis and 1.1% on a yearly basis vs expectation of 0.9% and 1% respectively. A struggling retail sector could support the premise for an interest rate cut sooner rather than later. The European Central Bank will be digesting the data and monitoring the next round of inflation data closely. German data is released on Friday morning and can have a big impact on the wider Eurozone economy given the size of Germany.
If inflation continues to drop and the jobs and retail sector struggles the ECB will have to act on interest rates to avoid a recession. Current expectations are for interest rates to be cut by 125 basis points this year. That would bring Eurozone interest rates down from 4.5% to 3.25%. Compare this with the UK expectations of 5.25% to 4.5% and you can see why the pound is currently holding its ground against the euro.
However, higher for longer interest rates could begin to have a negative affect on the UK economy which narrowly avoided a recession this quarter.
Central Bank Speakers
Exchange rates fluctuations could be driven by commentary towards the end of this week with several central bankers set to speak. Member of the BoE Catherine Mann is speaking tomorrow, and she voted for an interest rate hike at the last meeting. Philip Lane, chief economist for the ECB will speak shortly afterwards and financial markets will be looking to digest what both have to say regarding future policy.
For expert guidance on international payments and market leading information please reach out to me directly on [email protected]
Source: https://www.poundsterlingforecast.com/2024/02/sterling-back-above-1-17-against-the-euro-where-will-rates-go-next/
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Lion’s Mane Mushroom
Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, But it benefits growth of Essential Gut Flora, further enhancing your Vitality.
Our Formula includes:
Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity.
Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins.
Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system.
Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome.
Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function.
Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules. Today Be 100% Satisfied Or Receive A Full Money Back Guarantee Order Yours Today By Following This Link.
| Online: | |
| Visits: | 1,609,334,018 |
| Stories: | 8,167,544 |
Whistler Blowers, Insiders
