IFX Market Report: Monday 31st October 2022

Last week saw the pound strengthen after new Prime Minister Rishi Sunak agreed to push the date of the economic decision to 17th November, so that the right decision could be made. The pound hit highs of 1.1630, the highest since August 31st.

On Friday US pending home sales for September fall 10.2%, the fastest drop since March 2021, which is way lower than the previous month (1.9%) and lower than the 5% forecast.

In the Eurozone this morning inflation data soared to 10.7%, its highest level since records began and above the consensus figure of 10.2%. GDP figures declined in Q3 but showed a very slight growth of 0.2% which was in line with consensus, but down from the Q2 figure of 0.8%.

Despite the negative data the Euro was not majorly affected and resides at 0.9934 against the dollar.

This week is an important week for the UK, with Thursday’s BOE monetary policy decision seen as the most eagerly anticipated one for years. The decision will provide announcements on Interest rates which are expected to rise again by 0.75% to 3%, and will also give new forecasts for the UK economy.

GBPUSD resides at 1.1550
GBPUSD resides at 1.1625
EURUSD resides at 0.9935

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