Your browser is out of date

This website has been built for modern browsers, yours is many years out of date and as a result, your experience of this website will be poor.

Please upgrade your browser and pop back.


Market Reports

8:26am, July 26th 2019

ECB indicate rate cuts – euro resilient…

Mario Draghi and his team opened the door to an interest rate cut later this year. The European Central Bank identified the economic outlook as getting ‘…worse and worse.’ As a result, the bank are prepared to provide increased monetary stimulus in an attempt to salvage the mild recovery seen over the past few years.

It’s highly likely the central bank will implement a deposit rate cut in their September meeting. The deposit rate is already at -0.40% and represents the price to commercial banks to deposit funds securely with the ECB overnight. In essence, the central bank charges these banks to hold their money, this is expected to incentivise them to lend the funds to private individuals and companies with the aim of stimulating economic growth. Draghi’s performance was a sombre one and one which he will be disappointed by as it did not have the intended impact on the euro he’d have hoped for. The euro initially sold off on the 1245 announcement but was bid up into the press conference and throughout it. On balance, the central bank are still split when it comes to a cash interest rate cut and still require time to find consensus, as a result, the imminent threat is removed thus producing the reversal.

Today’s economic calendar sees focus shift across to our friends in the US. It’s time for another GDP report, this one reflecting activity in the 2nd quarter. This is a preliminary reading so will provide us with the most volatility due to its high potential to diverge from expectations. Forecasts are for a drop to 1.8% annualised. This is coming from Q1’s reading of 3.1%, a significant fall by any standard. The print will cross the wires at 1330 and should provide some volatility throughout the dollar crosses.

Have a good weekend.

Written by Viv Savani. 8:26am, July 26th 2019

The details expressed in this market report are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Cornhill International Payments limited accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information.

Previous Reports

8:55am, December 2nd 2019

Busy week ahead…

View Report
9:12am, November 5th 2019

GBP on the back foot as new speaker announced, UK services PMI in focus…

View Report
8:40am, December 3rd 2019

Buck weakens as markets look ahead into 2020…

View Report


Our Clients Say

"I have had an association with Cornhill for over a decade and have had the pleasure of working with the same broker for the entire period of time, which is currently just over 15 years. This shows not only my dedication and customer loyalty to the company, but also their commitment and successful staff retention. The level of service I have received has never waned or altered and has been consistent over the term. Keep up the good work Cornhill. Dominic you are a legend."

Helen - FD, Essex Boatyard

"When deciding to buy a property in France, my husband and I failed to consider the implications of the currency exchange and to be honest, it was extremely daunting to know that the cost of the property could have increased significantly potentially wiping out any renovations we had planned had we sat on our hands and left it to chance. Thankfully, Dominic (our account manager) and the rest of the Cornhill team couldn’t have been more helpful, and as such helped us to understand our options and secure a price that puts our bank to shame. Always courteous and friendly, we don’t know what we would have done without them now!"

Samantha Johnson - Private Client

"I work to very tight margins in my business and as such currency volatility has a major impact on how well my business performs. After dealing with my bank for many years, I took the step of opening an account with Cornhill after meeting one of their team at an industry event. James took the time to explain the services and quickly highlighted what I was missing from my bank – proactivity and competitive pricing. It’s almost impossible to get through to someone at my bank without jumping through many hoops. Cornhill are always in touch at the right time, which helps me to time my currency purchases and make the most of moves in my favour. I now rest easy knowing I have a team of people working FOR my business and adding true value to it both in pricing terms and proactivity terms. My profits have increased and I know I am in good hands!"

Martin Fisher – FD of a Packaging Business

"My products are made abroad by trusted suppliers who I have worked with for many years. After a number of issues with my previous currency provider (payments being delayed), I decided to look at who else could help with my payments. Fortunately, I was introduced to Cornhill by a former colleague who uses their services. Since then, I haven’t looked back. Customer service is often overlooked in this ever-increasing digital age, but to know I have someone to call at the end of the phone who will listen to my query and take ownership of it for me is a breath of fresh air. Vivek and Greg have been reassuring and whenever I have a question for them, they are quick to respond and resolve."

Alexandra Houghton – Founder of a clothing business