Hans van Leeuwen’s Post

🔴🟡 If you or your clients are concerned about currency risk and want to speak with an expert, connect with Michael McGowan and our FX team, or search "Bibby FX" online for more information. ⬇ Our latest international trade report found that UK importers and exporters lost an average of £80,000 due to currency volatility in 2023. #BFX #ForeignExchange #SupportingBusinessAsUsual

A couple of important announcements from a foreign exchange perspective this month: 1.      The European Central Bank’s decision to maintain its deposit rate at 4% 2.      UK inflation falling to 3.2% in March With expectations of a steeper fall in inflation, there’s a growing market view that the Bank of England will maintain rates at their current level for a while longer, despite hopes of a decrease this side of the summer. All eyes are now on the GDP announcement next month, which will indicate whether the UK economy grew in the first quarter.

The Reserve Bank of Australia (RBA) held the cash rate steady last week at 4.35%. While this was widely expected, it begs the question as to when rates will be cut. While central banks in Switzerland, Sweden, Canada and the European Union have lowered rates, the RBA remains cautious, according to Ray White chief economist Nerida Conisbee. Inflation in Australia is above the RBA's target but the economy is showing signs of weakness, with slow GDP growth, a rise in the unemployment rate and slower-than-expected wages growth. And, unlike some European countries that cut rates before reaching their inflation target, the RBA has said it is keeping an eye on the potential lags in the effect of monetary policy. Economists are still forecasting a rate cut this year, though. “Australia will follow, likely sooner rather than later and increasingly likely this year,” said Ms Conisbee. #turnkeybuilder #melbourneproperty #melbournerealestate

🌟 Great to wake up this morning to the news that inflation has hit the UK’s 2% target for the first time in three years! 🎉 This significant milestone means consumer prices inflation has dropped to 2%, ahead of both the US and Eurozone. This is a remarkable achievement, especially following the worst inflationary upsurge in a generation. Does this indicate that the UK economy has "turned the corner"? 🧐 And will the central bank respond by cutting interest rates at a faster pace following this positive reading? Only time will tell, but these developments certainly impact on businesses and consumers alike. What are your thoughts on this news and its potential implications? 🤔💬 #Economy #Inflation #UKEconomy #Finance #BusinessNews #EconomicGrowth #CentralBankPolicy

Recent data reveals a significant dip in inflation rates across the UK and Eurozone, with both the UK and Eurozone annual inflation rates dropping to 1.7% — both below their respective target levels of 2%. This decline bolsters expectations for further interest rate cuts, potentially easing borrowing costs for consumers and businesses alike. However, while the reduction in inflation is a welcome relief, it comes amidst slowing economic growth in several regions. The Eurozone's Purchasing Managers’ Index indicates a contraction in business activity, and the UK's economic expansion remains muted. These trends underscore persistent risks of recession. As central banks weigh their next moves, the balancing act between fostering growth and maintaining price stability continues. The path ahead requires careful navigation to ensure sustainable economic recovery. The visualisation is also available at https://lnkd.in/dTabPmCj #economy #inflation #interestrates #economicpolicy #economicoutlook #eurozone #ratings #creditratings

🌧️ Rainy bank holiday aside, the markets never rest! 🥽 Dive into this week's dynamic financial updates with Tammy! 🌍 Last Week: 🇬🇧 GBP: The British pound saw slight fluctuations around UK elections, dipping to $1.2509 against the dollar. 🇪🇺 EUR: The Euro reached a high of $1.08, driven by positive GDP growth and revised rate cut expectations. 🇺🇸 USD: The dollar declined 1% over the week, influenced by Fed's rate stance and a weaker jobs report. This Week: 👉Thursday: BoE Interest Rate Decision (12 p.m.) 👉 Friday: UK GDP Growth rate (7 a.m.)

UK: Market Wire "After last weeks slightly weaker than expected US employment report, GBPUSD initially pushed higher again on expectations of a possible 0.5% US rate cut from the Fed on September 18th. This week, UK average earnings and GDP are released. Can they encourage the Bank of England to hold rates steady, as Bloomberg analysts currently expect, and help propel GBPUSD to another new yearly high?" To read the full report from our Senior Market Strategist, Trevor Charsley and sign up for our weekly updates please click here: https://lnkd.in/dRWRy2b8 #fxmarkets #marketanalysis #internationalpayments #fxhedging #inflation #payments #uk

According to official figures released on Tuesday by the Office for National Statistics, UK wage growth slowed in the three months to July, with tax records showing employment fell by 6,000 in July and by 59,000 in August. Across the Channel, the European Central Bank cut interest rates on Thursday by a quarter of a percentage point to 3.5% as Eurozone inflation continues to fall. The US Federal Reserve is also expected to cut rates next week, with futures markets currently forecasting a full percentage point cut by the end of the year. Get the full market update this week: https://bit.ly/3Tove5C #Inflation #Tax #Investments #InterestRates