Author Archives: Ricky Kielkowski

BoE Holds Rates as Inflation Concerns Linger
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BoE Holds Rates as Inflation Concerns Linger

As anticipated, the Bank of England left interest rates unchanged at 4.5% yesterday, with the Monetary Policy Committee voting 8–1 in favour of maintaining the current level.

Inflation Outlook Raises Questions

With inflation expected to edge towards 4% in the coming months, concerns are mounting over the Bank’s ability to return to its 2% target in the near term. This persistent price pressure could complicate future policy decisions and prolong the current rate environment.

Sterling Mixed on Policy Outcome

The pound strengthened against the euro following the BoE announcement, though it slipped slightly against the US dollar. Markets are now digesting the potential implications of prolonged inflationary pressures and a central bank that appears content to wait and watch.

Muted Data Calendar Today

It’s a quiet day for economic releases. There are no major US data points scheduled this afternoon. Earlier today, UK Consumer Confidence and France’s Business Index both met expectations, offering little fresh direction for markets.

Later in the session, the focus will shift to the EU Consumer Confidence Flash figures, which may influence euro sentiment.

Be Prepared for Market Shifts

As central bank policy continues to shape FX trends, staying agile is crucial. For expert insights and strategic support with your international transfers, connect with a QuMoney specialist today.

Fed pauses rate changes, BoE decision due today. Track market moves and manage FX risk with expert support from QuMoney.
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Market Briefing: Fed Holds Rates as Focus Shifts to the Bank of England

As widely anticipated, the US Federal Reserve kept interest rates unchanged yesterday. However, during the press conference, Chair Jerome Powell underscored the growing uncertainty surrounding the US economic outlook. He reiterated that the Fed is in no rush to adjust its monetary policy, suggesting a more cautious stance for the months ahead.

Market Reaction Remains Subdued

Markets responded with little fanfare. While the US dollar saw a modest uptick immediately following the Fed’s announcement, those gains were erased overnight as sentiment softened.

Euro Slips Against Major Peers

The euro came under pressure during the session, weakening by 0.4% against both the pound and the dollar. The move reflected broader market caution and relative strength in sterling ahead of today’s Bank of England meeting.

Attention Turns to the Bank of England

UK economic data for January landed broadly in line with expectations earlier this morning. The spotlight now turns to the BoE’s policy decision, where interest rates are expected to remain unchanged. However, the key focus will be the meeting statement and the voting breakdown from the Monetary Policy Committee (MPC), which could offer clues about the future direction of UK rates.

Expert Guidance in Uncertain Times

With central bank decisions shaping global currency markets, now is a key time to review your international payment strategies. For bespoke advice and market insights, speak to a QuMoney expert today.

All Eyes on the Fed as Euro Gains Ground
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Market Focus: All Eyes on the Fed as Euro Gains Ground

With no major UK data on the calendar today, investor attention has shifted across the Channel and over to the US for key economic updates.

EU Inflation Data Due This Morning

Markets are awaiting the latest Consumer Price Index (CPI) figures from the eurozone. Inflation is expected to come in softer than last month, which could put downward pressure on the euro if confirmed.

FOMC Policy Decision Takes Centre Stage

The day’s headline event is the US Federal Reserve’s policy announcement this evening. The market consensus points to a rate cut, with the Fed expected to reduce its headline rate from 4.5% to 4.37%.

However, the real focus will be on the Fed’s forward guidance. Investors will be watching closely for any signals about further rate adjustments in 2025, as policymakers weigh slowing inflation against persistent economic uncertainty.

Euro Strengthens on German Spending Boost

The euro has continued to edge higher overnight, following Germany’s announcement of increased public expenditure. This fiscal shift, agreed late Sunday, has lent the single currency support against both the pound and the dollar.

Sterling Holds Its Ground

Despite ongoing debate around the UK’s tax policies, sterling remains resilient—supported by its relative attractiveness in a shifting global landscape.

Strategic Currency Management Starts Here

With central banks setting the tone for currency markets, understanding the implications for your business or portfolio is crucial. Speak to a QuMoney expert today to navigate market moves and optimise your international transfers.

US retail sales underwhelm, adding pressure to the dollar. Stay informed with QuMoney’s expert currency insights and strategic guidance.
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Market Update: Mixed US Retail Data Keeps Dollar Under Pressure

Global markets started the week with a cautiously optimistic tone, as risk appetite ticked slightly higher.

Mixed US Retail Sales Weigh on the Dollar

The key economic release of the day came from the United States, where retail sales for February posted a modest rebound of 0.2%—falling short of the 0.6% forecast. January’s figure was also revised lower to a 1.2% decline. The underwhelming data added to concerns about the strength of US consumer activity.

In response, the US dollar softened, slipping 0.4% against both the euro and the pound. Currency markets appear to be pricing in the likelihood that the Federal Reserve will maintain its current interest rate stance during tomorrow’s policy announcement.

Looking Ahead: US & Japan in Focus

Investors will now turn their attention to February’s US industrial production figures, due later today. Meanwhile, all eyes are also on the Bank of Japan, which is widely expected to leave rates unchanged during its upcoming meeting.

Expert Support When It Matters Most

Currency markets are moving on every data point. For businesses and individuals managing international transfers, it’s more important than ever to stay ahead of the curve. Speak to a QuMoney expert to make informed decisions and protect your bottom line.

Markets turn cautious amid trade tensions and weak UK GDP. Stay informed with QuMoney’s expert currency insights.
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Market Outlook: Risk Sentiment Wanes Amid Global Trade Tensions

Investor confidence shifted back into risk-off territory yesterday, reversing modest gains seen midweek. This move came as global trade tensions continued to mount, fuelling concerns over a potential escalation in protectionist policies. Adding to the unease was renewed speculation about a possible US government shutdown, which further eroded appetite for risk assets.

Currency Markets Hold Steady

Currency markets remained relatively subdued, with the major pairs trading in tight ranges. The US dollar eked out marginal gains against both the euro and the pound, though movements were limited.

UK GDP Misses Expectations

This morning’s release of UK GDP figures for January painted a disappointing picture, showing a 0.1% month-on-month contraction—falling short of forecasts for a 0.1% expansion. This suggests the UK economy entered 2025 on a fragile footing, and may prompt renewed discussion around the timing and direction of future monetary policy.

Looking Ahead: US Consumer Sentiment & Tariff Developments

Later today, markets will turn their attention to US consumer sentiment data for March. With trade developments still in sharp focus, any tariff-related headlines could drive late-week volatility—particularly for businesses with significant exposure to international markets.

Stay Ahead of the Curve

If your business is exposed to currency fluctuations or international trade, it’s essential to stay informed and prepared. Speak with one of our QuMoney specialists to explore strategies for managing risk and making the most of market movements.

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