- GBP
Following July’s UK election, the first Labour budget since 2010 is eagerly anticipated. Although speculation has tempered some FX market reaction, pound volatility may still arise based on market interpretations of the announced measures. For UK businesses and individuals, the budget will clarify Labour’s priorities on tax, spending, and investments for the years ahead. Aside from the budget, this week will be relatively quiet for UK economic data releases.
- EUR
EU year-on-year inflation has fallen from 10.7% in October 2022 to 1.7% in September 2024, nearing the European Central Bank’s 2% target. While high inflation poses risks, low inflation or deflation can also destabilize the economy, leaving the ECB with the challenge of balancing rates to keep inflation steady. The latest CPI inflation data is expected at 1.9%. A higher figure could prompt the ECB to consider rate cuts, potentially weakening the euro, while a lower result could strengthen it by suggesting no further cuts this year.
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