Following UK wage data coming out better than expected this morning, the markets saw an immediate boost in the Pound, continuing its advances against the Euro and fighting the continued battle with the US Dollar.
While this may look positive in the short-term following the ‘festive figures’ analysts are suggesting the somewhat of the smooth sailing could be coming to an end and heading into spring, the tide could turn and head into choppy waters ahead.
The Bank of England’s job is far from done in terms of the ongoing battle with inflation and an elevated cautious approach is suspected to continue.
Both US and Russian diplomats are currently in the Middle East for negotiations to take place surrounding the end of the Ukraine-Russia war, which started 3 years ago however Kyiv did not join. The news and any developments on the talks so far have been scarce, if the markets don’t pick up on anything positive in the coming days with these talks, we could see a sell off in the Euro and surrounding Europeans local currencies.
Down under, the Royal Bank of Australia announced their cut of 25 basis points, which was highly anticipated by the markets, although the statement following the announcement suggest a more hawkish stance moving forward alongside the revision of forecast inflation moves higher for 2026.
-Oakleigh Exchange Partners-