top of page
Search

24th January - Weekly FX Update

Top Currency Pairs Monday 24th January 9:00 UTC GBP/USD: 1.35391 (Last Week: 1.36800) EUR/USD: 1.13223 (Last Week: 1.14292) GBP/EUR: 1.19579 (Last Week: 1.19694)


Market News

Pound Sterling The Pound soared above resistance last week against the Euro as inflation in the UK jumped to a near 30-year high at a level of 5.4% in the year to December, meaning inflation has been higher than estimates for the second month in a row. On Friday, these quick gains were lost after a poor retail sales report prompted a pullback to 1.1950 against the Euro, and 1.3560 against the Dollar. Looking ahead, there will be no major input from economic data this week, and focus will instead be on the British political picture, as PM Boris Johnson appears close to being forced out of his role. However, the sentiment for the Pound is certainly strong as the UK government has moved to ditch plan B restrictions and another interest rate hike is being priced in for next week.


Euro In Germany, inflation rose to 5.3% in December. This was in line with economists forecasts, however, with escalating tensions between Ukraine and Russia, this data was certainly on the backburner for the Euro. As embassy staff begin to be pulled out of Kyiv and NATO have started sending in 'ships and fighter jets' to Eastern Europe, the pressure of Russia's significant military action against Ukraine continue to build. The Euro seems to be pricing in little geopolitical risk, so if the situation between the two nations continues to flare up, we will see some downside risk to the Euro. The Euro has quite a neutral risk profile, so by the same token, if tensions do begin to ease, it is expected the Euro will find some strength, but not much.


U.S. Dollar Current geopolitical risk between Ukraine and Russia looks set to give the Dollar a boost with its safe-haven status. Moreover, ING strategists assert that energy-related volatility would likely mean gains for the U.S. currency against the Euro, as escalation will expose Europe's dependence on Russia's energy exports. Meanwhile, the Dollar could look to give up ground against the Pound over the coming weeks if the Bank of England continue to hike interest rates before the Federal Reserve. The Fed will start a two day meeting on Tuesday which could signal the start of interest rate hikes from March, but the Bank of England are expected to hike rates again as early as next week.


If you require alternative currency pair updates, please get in touch and we can arrange for a personalised weekly newsletter. For other FX enquiries, or to book a demo, please call us on 020 3908 4662, or email us at info@goxchange.co.uk Disclaimer: This is not investment advice; it is for informational purposes only.




Comments


Untitled design.png
  • LinkedIn
  • Instagram

CurrencyCloud

For clients based in the European Economic Area, payment services for Go Xchange Limited are provided by CurrencyCloud B.V.. Registered in the Netherlands No. 72186178. Registered Office: Nieuwezijds Voorburgwal 296 - 298, Mindspace Nieuwezijds Office 001 Amsterdam. CurrencyCloud B.V. is authorised by the DNB under the Wet op het financieel toezicht to carry out the business of an electronic-money institution (Relation Number: R142701).

For clients based in the United States, payment services for Go Xchange Limited are provided by The Currency Cloud Inc. which operates in partnership with Community Federal Savings Bank (CFSB) to facilitate payments in all 50 states in the US. CFSB is registered with the Federal Deposit Insurance Corporation (FDIC Certificate# 57129). The Currency Cloud Inc is registered with FinCEN and authorised in 39 states to transmit money (MSB Registration Number: 31000206794359). Registered Office: 104 5th Avenue, 20th Floor, New York , NY 10011.

For clients based in the United Kingdom and rest of the world, payment services for Go Xchange Limited are provided by The Currency Cloud Limited. Registered in England and Wales No. 06323311. Registered Office: Stewardship Building 1st Floor, 12 Steward Street London E1 6FQ. The Currency Cloud Limited is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money (FRN: 900199). 

Currencycloud Terms of Use

GC Partners

Go Xchange's payment and foreign currency exchange services are provided by Global Currency Exchange Network Ltd T/A GC Partners. Global Currency Exchange Network Ltd is authorised by the FCA under the Payment Services Regulations, 2017 (FRN: 504346). Registered as a Money Services Business, regulated by HM Revenue & Customs ("HMRC") under the Money Laundering Regulations 2017. (Registration number is 12137189). Registered in England and Wales. Company number 04675786. Registered Office 3rd Floor 100 New Bond Street, London, England, W1S 1SP.

© 2022 Go Xchange. All rights reserved.

Go Group Holdings

For any formal complaints, please contact us via:

Email: complaints@goxchange.co.uk

Phone: 020 3908 4662

Post: 20-24 High Street, Rayleigh, Essex. SS6 7EF

bottom of page