Sterling bounced higher yesterday as April’s CPI hit 3.0% although the gainswere short lived as we hit 3 month lowsagainst the USD. The Bank of England isin a real predicament as a hike in ratesto control inflation would further stranglethe ailing housing market as seen inyesterday’s RICS house price data, andthe cut priced in for next month has albut evaporated.
This morning’s Inflation Report couldmake for fairly grim reading but will giveus a good indication of future rate movements.

In comparison, the US economy continues to pump out strong data. Abullish retail sales report yesterday solidified confidence and allowed the greenback to gain against most crosses.This is an indication that higher energy and food prices have not the US consumers’ pocket too hard. What this could lead to is solidification that the FOMC now thinks it safe to pause its cutting cycle and move away from itstriage stance to one more focused on rehabilitating the economy. Today’s CPI figure will prove interesting with it predicted to stay as the previous reading of 0.3%.

Indicative Rates
Sell Buy
GBPEUR 1.2573 1.2599
GBPUSD 1.9397 1.9419
EURUSD 1.5410 1.5433
GBPJPY 203.00 205.10
GBPAUD 2.0757 2.0806
GBPNZD 2.5475 2.5550
GBPCAD 1.9481 1.9526
GBPZAR 14.75 14.80
USDZAR 7.60 7.63
GBPPLN 4.2510 4.2763
Rates are dependent on amount transacted
Please call 0207 801 9080 for a live rate quote
Email: (jeremy.cook@worldfirst.com) Please feel free to contact me at anytime regarding these briefings, if you have any questions or thoughts on them, or if you are interested in a particular event in the calendar.Please call us on 0800 783 6022 / +44 20 7801 9080 if you would like to discuss the markets or fix a rate.

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The above comments are only our views and should not be construed as advice. You should act using your own information and judgement. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the authors own judgement as of the date of the briefing and are subject to change without notice.

Any rates given are interbank and therefore for amounts of £5million and so are not indicative of rates offered by World First for smaller amounts.

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