Exchange Rate

[Ecky Thump]

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CaxtonFX are currently (09:30) offering €1.1175 to the £ when you load their Euro Debit Card, which is approximately the rate that you will get in the Tenerife exchange shops.


Yesterday's Market Highlights

Sterling rallied yesterday as the BoE’s decision to keep interest rates on hold was a closer call than expected. Three members dissented in favour of raising rates: Ian McCafferty and Michael Saunders joined Kristin Forbes, who leaves the MPC at the end of the month. The dissent comes as inflation accelerated to 2.9% in May.

The pound jumped over 0.7% against both the euro and the dollar. Sterling-euro hit 1.1450 for the first time since the election. Sterling’s gains against the Canadian dollar saw the rate eye but not break 1.7000, which it last hit on Monday.


Today's Market Highlights

Final Eurozone CPI (10:00 BST) is expected to confirm that inflation slowed to 1.4% in May and that core inflation slowed to 0.9%. Although the ECB has removed its interest rate easing bias, interest rates are likely to remain on hold for the time being as the ECB watches the pace of low underlying inflation. The figures may have limited impact barring any unexpected revisions.

In the afternoon (13:30 BST), the US releases housing data, gains in which could offer the dollar support. The main Canadian release is Foreign Securities Purchases (13:30 BST).

While the economic calendar is quieter next week, UK politics will be in sharp focus. Brexit talks between the UK and the EU begin on Monday. The Queen’s Speech has been rescheduled from Monday 19 June to Wednesday 21 June.

[tub]

got 1-13 at java today