An update from International Foreign Exchange

  • 09MAY
An update from International Foreign Exchange

'It may have taken some time to register, but the vote for Brexit is now really reaping its toll on the UK economy. The UK went from being the fastest growing G7 economy ahead of the vote to the slowest by the final quarter of 2017, with even Japan and Italy surpassing it.

We have seen the pound lose ground over the past week on the back of poor GDP figures last Friday which has now casted major doubt on whether the UK will raise interest rates this week so we anticipate that the pound can come off even more.

The USD which is pegged to the Dirham has strengthened over the past week. We saw strong growth figures, geo political tension has taken a bit of a back seat and the tariffs on aluminum and steel that Trump wanted to impose has been postponed all aiding to the dollar strength.

In the week ahead the main focus will on the Bank Of England rate announcement and in the US CPI inflation data for April are due. This is a big indicator for future interest rate hikes, if positive then we could see the dollar strengthen further.'
9th May 2018