GBP
The Bank of England is looking closely for signs of how persistent inflation is likely to be as it prepares to decide next week whether to raise interest rates by half a percentage point, which would be its biggest increase since 1995.
The BRC’s measure of annual shop price inflation remains well below the Office for National Statistics’ broader consumer prices index, which showed annual inflation hit a 40-year high of 9.4% in June, led by a 9.8% leap in food and drink prices.
USD
Today, the highlight will be the Fed interest rate announcement, A 75bps rate hike is expected, for the second consecutive meeting.
The post-meeting press conference will garner close attention also. In the run-up to today’s meeting conclusion, forex markets may be in a holding pattern, as investors keep their powder dry ahead of the announcement.
EUR
Surging European gas prices are likely to keep the Euro under as fears of a deep recession in the Eurozone over the coming winter.
Euro exchange rates fell sharply as European gas contract prices shot higher as it was revealed Russia would further throttle back gas supplies to European markets in retaliation for Europe’s support of Ukraine.
If you or your company are impacted by currency risk please reach out to speak to one of our experts, we can assist with decision making during this difficult time to help you protect your profits.