France
2 September 2024
Weekly Market Headlines:
- GBP to EUR rates remain near the two-year highs reached in July. With expectations that the Bank of England may hold interest rates this month while the European Central Bank could cut rates, sterling continues to show strength heading into this week. A £50,000 transfer today would yield €1,500 more than at August’s lowest point, demonstrating the recent improvement for those converting pounds to euros.
- GBP to USD rates are at their highest since March 2022. The same narrative is driving the pound’s favourable performance against the US dollar, with predictions that the US Federal Reserve may cut interest rates in their upcoming meeting. A £50,000 transfer today buys $2,300 more than at August’s lowest point, representing a significant 3.5% gain for dollar buyers in under a month.
- This week, attention is on U.S. unemployment data, which could pressure the Federal Reserve to consider rate cuts if recession fears intensify. Meanwhile, limited economic data from the UK and Eurozone suggests that the GBP to EUR exchange rate may be driven by U.S. developments and overall market sentiment regarding future UK and Eurozone rate policies.
- September will be a pivotal month for foreign exchange markets, as the Bank of England, European Central Bank, and U.S. Federal Reserve will announce their interest rate decisions. These announcements may lead to significant market fluctuations.
- With potential volatility ahead, having a currency plan is essential. Interest rate changes significantly impact currency movements, so monitoring these developments is key. Our team offers regular updates and tools like forward contracts to lock in rates for up to a year, and limit orders to help you protect and optimise your budget and FX costs.
What events might move exchange rates this week?
GBP
- Wednesday: UK Services PMI
- Friday: UK Halifax House Price Data
USD
- Tuesday: US Manufacturing PMI
- Thursday: US Services PMI
- Friday: US Non-Farm Payroll
EUR
- Thursday: Eurozone Retail Sales
- Friday: Eurozone GDP
