The British Pound (GBP) is one of the world’s most traded currencies. With the help of Forex brokers and banks, it has the potential to be used as an international money transmitter. This could potentially have a significant impact on global supply and demand in the future.
The latest developments involving the UK economy include the release of quarterly figures by the ONS for consumer credit and bank lending data. The latest figures show that consumer debt held by banks in the UK has declined in the third quarter, which is good news for those consumers who are struggling to meet their monthly repayments. These figures also show that the average monthly mortgage payment has fallen to its lowest level for over 10 years. Meanwhile, it has been reported that house prices have been falling for three months running, which is good news for UK homeowners who are having difficulty making their payments.
Latest: GBP/USD Easing After Debate, House Pricings, Bank Rate, Monetary Policy, FOMC Minutes, and FOMC Minutes} Following the release of the third quarter figures, many analysts and observers were quick to draw comparisons between them and the trends that have been identified since the creation of the FOMC in the United States. The Financial Policy Committee was tasked with maintaining a close eye on the various economic data that was released, and it issued a statement which said that it was “monitoring the performance of the UK economy and financial markets and will provide a regular update on the status of the economy should one emerge.” However, it has also been noted that there is a significant difference between the official government statements and what is being reported by private financial companies, especially those who work in the financial industry.
There have been various reports by commentators concerning the potential effects that the release of quarterly data, which were released by the Office for National Statistics (ONS) could have on global markets, and the latest data from the Financial Services Authority (FSA) is one such report which was published in August 2020. The FSA published its official view regarding the potential impact of the release of data relating to the UK markets on global markets, and the role that the government agencies and regulatory bodies play in the daily activities of the markets. It warned that data releases have a “potential impact” on the price of currencies and markets and how they need to be taken into account before making a decision.
Latest: GBP/USD Easing After Debate, House Pricings, Bank Rate, Monetary Policy, FOMC Minutes, and FOMC Minutes} The UK’s data releases and the UK’s position in the global economy has been seen by analysts as another reason why the exchange rates have been fluctuating and the latest data has confirmed the fact that interest rates have been falling across the globe. However, the analysis of the figures showed that there was no major change in the level of interest rates, which suggests that they have been rising because of economic conditions in the UK. In addition, the latest reports have also shown that there is a marked change in the size of the banking sector, which has resulted in the decline in mortgage defaults which has led to a fall in the number of mortgages outstanding.
Latest: GBP/USD Easing After Debate, House Pricings, GDP, Bank Rate, Monetary Policy, FOMC Minutes, and FOMC Minutes} There has also been a trend in the fall in the amount of money being lent to UK households by banks and other financial institutions, which means that there has been a decline in the amount of money circulating in the UK economy. This has led to lower levels of consumer indebtedness and this decline in borrowing is reflected in the increase in consumer credit outstanding. The fall in consumer borrowing is in line with the downward trend in the number of people who have lost their jobs in the UK in the past few months.
Latest: GBP/USD Easing After Debate, House Pricings, Bank Rate, Monetary Policy, FOMC Minutes, and FOMC Minutes} In order to help reduce the negative impact of the data released by the Office for National Statistics, the FSA issued guidelines which explain that the release of data relating to the UK markets should not be interpreted in a way which is detrimental to the financial services industry. The release of information related to the UK markets should not be used to evaluate the effectiveness of specific lending programs or to influence the introduction of new policies. If the FSA rules are followed, then consumers are able to use the data in an informed way and they do not risk being charged with unfair or discriminatory practices.
Latest: GBP/USD Easing After Debate, House Pricings, Bank Rate, Monetary Policy, FOMC Minutes, and FOMC Minutes} The release of quarterly statistics has been seen by many as a major indicator of the global markets, and the latest data released by the Office for National Statistics has sho