The pound fell sharply yesterday after the UK inflation rate jumped from 7% to 9% – its highest level since 1982.
Investors were more interested in the confirmation that the central bank will halve the value of its asset purchases in October.
This suggests that the ECB is still on track to wind down its quantitative easing programme by the end of the year, although the prospect of higher interest rates still remains a distant one.
However, as the Eurozone trade surplus for July narrowed further than forecast on the month this offered fresh evidence of the external pressures facing the economy of the currency union.
With global trade tensions continuing to mount in response to the latest US tariffs threats against China the appeal of the euro remains limited.
Further signs that the Eurozone economy is still losing momentum may emerge from Friday’s raft of manufacturing and services PMIs.
A continued slowing of the manufacturing sector could see the single currency fall further out of favour, with the Eurozone looking less likely to return to last year’s bullish pace of growth in the near future.
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)