Excel Currencies Blog

Let's start with the positives then and both the core inflation and inflation rate in the UK for August was down. The more important core inflation figure saw a sizeable decrease from 6.9% to 6.2%, after barely moving in recent months. Good news for our pockets, but this was the reason for money markets to dent the chances of a rate hike tomorrow.

That's not to say that won't happen though, as many still expect a 25bp rate rise. But with the core number now making a more significant drop, any further interest rate rises are could be off the cards. This is seen as negative for GBP, as higher interest rates support a higher currency value.

So, we have a 50-50 outcome for tomorrow and seeing as the Pound is on the back-foot currently, this is a 'more to lose than to gain' scenario for £ sellers. GBP v EUR has lost €2,200 on a conversion of £100,000 in just 1-month now with $3,600 lost on the same figure where GBP v USD is concerned.