Will the Pound rise against the Euro after ONS announcement?

GBP EUR Exchange Rate: The Week Ahead August 15th

Pound Euro gains this week

The Pound Euro exchange rate has picked up once again towards the end of this trading week after the problems caused by last week’s mini budget. The statement made last week caused the Pound to plummet by as much as 5% during last Friday’s trading session. GBPUSD exchange rates also got close to their lowest level in history.

Since then the Bank of England have stepped in and bought £65bn worth of bonds to shore up the market and this has helped Sterling exchange rates to recover their losses from this time last week.

Prime Minister Liz Truss has also been on a PR offensive in order to try and stabilise the market since the announcement last week.

UK Not In Recession

Earlier this morning The Office for National Statistics announced that the UK had avoided a technical recession.  This saw economic output rise by 0.2% between April and June which was revised up from the previous reading of -0.1%. This news has also helped support Sterling exchange rates against a number of different currency pairs throughout this morning’s trading session.

Previously, the Bank of England had suggested that the UK could be facing recession so the more positive figures announced earlier today have put paid to that assumption at least for the time being.

However, there is still a huge amount of uncertainty surrounding the UK at the moment. With energy prices on the rise as of tomorrow and with GBPUSD rates at close to all time lows as oil is priced in Dollars this could mean more energy rises in the future again.

 

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Thanks for reading

Tom Holian

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