Will the pound rise higher if interest rates go to 6%?
Sterling remains near 2023 and yearly highs but could be under pressure
Pound sterling has risen to fresh highs in recent weeks and months against both the Euro and US dollar, as well as the Aussie dollar and many others.
This improved outlook has largely been the result of interest rate hikes, as well as feeling that 'things are not quite as bad as initially expected'.
When we began 2023 the market and commentary by the experts was largely negative, with a long and protracted recession predicted.
Well,...
Will the pound rise back against the Euro?
Pound Euro levels dip as Euro Strengthens !
The pound sterling to Euro rate fell yesterday as interest rate expectations for the Eurozone increased.
Christine Lagarde, indicated yesterday that stubborn inflation was likely to see the Eurozone continue to raise interest rates ahead.
We have written many times before about how a higher interest rate leads to a stronger currency.
The pound has hit 1.17 and higher in recent weeks mainly because of higher interest rate expectations for the UK.
But, the main trigger for this, high inflation, is...
Will the pound continue to rise against the US dollar and Euro?
Sterling has been performing much better lately after improvements in the UK's economic outlook combined with expectations that the Bank of England will be looking to raise interest rates sooner and potentially higher than previously expected.
Looking to the latest interest rate outlook, the Bank of England has been earmarked to raise interest rates in the future at some stage but this might well need to happen sooner than expected.
Overall, UK interest rates are not set to be raised until the next meeting in early...
Sterling exchange rates remain under pressure despite upbeat data releases
During yesterday’s trading session the GBP/USD exchange rate dropped below the key 1.20 handle, even if only for a brief moment but it’s a sign of the Pound coming under pressure regardless.
The Pound has also lost some ground against the Euro and after spending some time trading in the 1.13’s and testing 1.14, the pair are now firmly in the 1.12’s despite some better-than-expected economic data releases out of the UK.
There has been a lot of talk and media headlines warning of a recession...
Will the pound get stronger? Growth figures show a surprise positive reading on Friday
The UK looks set to avoid a recession in 2022 as GDP data was announced on Friday. The UK economy grew by 0.1% in November, with the services sector providing a welcome boost when a 0.2% expansion was announced.
This came as a surprise to many forecasters, with a 0.3% GDP contraction the market expectation. Despite this, the pound failed to make any significant gains against the Euro, finishing the week trading at 1.1280 – a near 0.75% decrease since markets opened on Monday.
The Pound...
What to expect from GBP exchange rates in 2023?
Looking back on 2022, GBP exchange rates had one of the most volatile years on record especially against the US Dollar.
After such a bumpy ride for the Pound you may expect to see less volatility for GBP exchange rates but with economic growth set to drop this can never be ruled out, especially at the beginning of the year.
To recap 2022, GBP/USD experienced its worst annual performance since 2016 which was an exceptional year owing to the unexpected Brexit vote which caught the currency...
Pound jumps on expectations that Liz Truss will announce huge economic plan – Sterling...
The pound has struggled to find many positive days in recent weeks, however, over the course of this morning we have seen sterling exchange rates creep up against all major currencies.
The majority of this can be put down to a minor shift in sentiment and that investors and speculators alike appear to have some confidence behind the expected economic plans being muted by new Prime Minister Liz Truss.
Expectations are for an economic package of £130 Billion to be announced in due course which would...
Pound to Euro Exchange Rate Gains as Brexit Deal Passes Parliament
The pound to euro exchange rate was higher into Thursday after Boris Johnson’s Brexit deal passed Parliament with hours to spare. The agreement moved to the House of Lords, which approved the deal late on Wednesday, just one day before Britain is set to leave the European Union.
The GBP to EUR rate was trading 0.20% higher at 1.1090 after seeing support at 1.1000 yesterday.
Brexit Deal Finally Moves on From UK Politics
The signing of the deal ahead of the end of the transition phase today...
AUD to GBP Rate Higher as Virus Outweighs Brexit
The AUD to GBP exchange rate was trading higher on Wednesday as fears over the virus and lockdowns have outweighed any positive sentiment on the Brexit deal. The UK Parliament will vote on Boris Johnson’s deal later on Wednesday and the deal is set to pass as the Labour party and Johnson’s own party hardliners have said they will support the deal.
AUDGBP was trading at 0.5650 early on Wednesday and the pair may want to test the previous highs at 0.5720.
China Trade Spat Still...
Pound to Dollar Rates: Pound Hamstrung by “Thin” Post-Brexit Deal
The festive season is typically a quiet period for markets. This year had potential to be an exception to the rule after the UK and EU finally struck a post-Brexit free trade deal on Christmas Eve. Instead of rocketing to multi-month highs, however, the pound to dollar rate shrugged its shoulders at the news following an initial rally – and the reason for its unenthusiastic response and subsequent slide lower was simple: the contents of the deal is not considered a game-changer for the...