Middle East uncertainty sinks the pound

3 October 2024

Weekly Market Headlines:

• Bank of England Governor, Andrew Bailey warns that UK interest rate cuts could happen sooner than expected.
• The pound has dropped 1% against both the euro and the US dollar this morning. This is partly due to concerns over the ongoing Middle East conflict and its effect on the UK and global economy.
• Rising oil prices may destabilize the UK and global economy. Recent months have seen little economic growth for the UK, and higher oil prices could slow things down even more.
• Lower interest rates generally weaken the currency. As a result, the pound is now at its lowest point since September 18th against the euro and US dollar, reflecting expectations of a quicker move by the Bank of England.
• Upcoming US job data will be closely watched. Investors are focusing on US Non-Farm Payroll and Unemployment figures, as they often have a big impact on currency markets worldwide.

Given the current volatility in exchange rates, now is a crucial time to speak with one of our specialists, call us on +44 (0) 20 4506 5672 to explore your options and stay ahead of any market changes. You can also register and create an account with us online