Could the Pound be influenced by this week’s busy economic calendar?
After a fairly muted start to 2024 for GBP exchange rates, the outlook what which factors could influence the currency moving forward have become clear.
The Bank of England, European Central Bank and the Federal Reserve Bank in the US are all expected to begin cutting interest rates later this year. But the BoE differs in that the cuts are expected to begin later this year, and the number of cuts is expected to be slightly less.
GBP exchange rates remain strong as interest rates remain at 15-year high
Last week the Bank of England voted to keep interest rates on hold for the 4th consecutive time. Whilst this was expected in the lead up to the decision, we have seen a change in the voting patterns of the 9-voting members.
The rate will remain at 5.25% and the vote was a 6-3 split. Interestingly one member of the BoE’s Monetary Policy Committee voted for a cut so could this be the start of a change of approach...
Pound Sterling Forecast – Bank of England Decision today
How will the pound react today?
The Bank of England hold their latest interest rate decision at midday today, 12pm UK time. No change in interest rate policy is expected, but such events do have the power to move markets and are worth being aware if considering any sterling trades in the coming days, weeks and months.
Sterling has recently been trading at strong levels against many currencies including the Euro, Australian dollar, New Zealand dollar,...
Could this week’s economic updates push the Pound higher?
Looking over a 1-month chart for the Pound to Euro exchange rate, the Pound has gradually climbed in a consistent trend against the Euro.
There has been little volatility, but the GBP/EUR pair have climbed from 1.1500 up to 1.1725 in the space of 1-month, which is an almost 2% increase.
At last week’s European Central Bank (ECB) interest rate decision and statement afterwards ECB President Christine Lagarde opted not to push back against expectations of...
Sterling hits September high vs the Euro
GBP
Last week, we witnessed the release of numerous readings of economic data across the UK, having significant impact on the strength of the British pound. On Tuesday, we experienced data release of the average earnings. A slow rise in the average earnings was recorded, but regarded promising for the strength of the pound as it takes pressure off the Bank of England- the central bank- by easing inflationary pressure. In theory, this should slow down inflation which may...
GBPEUR hits 1.17 – will the pound continue to rise?
GBPEUR exchange rates rose to 4-month highs during yesterday’s session, hitting 1.17 on the interbank market. Sterling is trading 0.6% off the 52-week high against the euro, making now an opportune time for sterling sellers.
Sterling has remained resilient against the dollar, holding above the key threshold of 1.27. Cable (GBPUSD) rates are 0.7% off the 5-month high.
Services & Manufacturing data
Purchasing Managers Index (PMI) surveys senior executives within the manufacturing and...
Will GBP exchange rates remain strong despite recession fears?
Last week saw the Pound to Euro break above the 1.1650 handle for the first time this year, after remaining rangebound between 1.1600 to 1.1650 since the start of 2024.
The GBP/EUR pair have begun the week above 1.1650 even if only just, so the trend for the pair is gently climbing despite there being concerns for the UK economy falling into recession.
Retail Sales figures for December were released last week and came out below...
Sterling rises following UK inflation release – will the pound get stronger?
UK inflation data released this morning confirmed a rise in CPI inflation from 3.9% to 4%, causing an immediate rise in pound sterling’s value. The markets were expecting inflation to continue to drop off as it has for much of the last year.
Sticky inflation poses a threat to the prospect of interest rates being cut in the UK. The Bank of England have kept interest rates above 5% in attempt to cool down the rise in prices.
When will the Bank of England begin cutting interest rates, and how could this...
The Pound traded within a very tight range last week, as currency markets have begun the year in quite a muted fashion.
There was a range of just 115 pips for the GBP to EUR exchange rate, and the EUR to USD exchange rate traded within a range of just 80 pips. The EUR to USD exchange rate is the world’s most traded currency pair so this demonstrates how quiet markets were last week.
Throughout much...
Will the Pound get stronger against the US Dollar?
The Pound US Dollar exchange rate has been improving since the start of the year getting very close to the 1.28 levels.
The Pound has had a good start to the year already against a number of currencies including vs the Euro and the US Dollar.
According to recent figures the UK economy grew in November by 0.3% after being negative the previous month.
Black Friday sales have clearly helped boost...