Bank of England surprise the markets
Bank of England keeps interest rates on hold
The Bank of England kept interest rates on hold yesterday after 14 consecutive interest rate hikes.
On Wednesday morning we saw UK inflation coming out lower than expected.
This caused the Pound to fall to its lowest level against the Euro since the end of May.
This has created some excellent opportunities for anyone looking to sell Euros to buy Pounds.
The members of the Monetary Policy Committee voted 5-4 in favour of keeping interest rates on hold.
Therefore, could this be...
Pound Sterling Forecast: How to get the Best Pound to Euro Exchange Rate
Pound Sterling Forecast, what we can expect for the pound?
Getting the best pound to euro rate is about being prepared and tracking key economic data and information.
"Hope", is not usually a good strategy. Relying purely on "luck" and hoping that the market will magically go your way can often lead to disappointment.
Just because you cannot totally predict the direction on rates, doesn't mean you should just give up and accept your fate.
To help my clients get the best rates, I take the time to...
Will Sterling rise or fall in September?
Vital month ahead for pound sterling exchange rates
The pound has started the month of September in a buoyant mood. Sterling is back over 1.17 against the Euro, presenting some of the better times of the last year buying GBPEUR.
Clients interested in the US dollar and sterling might note the pound is weaker against the greenback. GBPUSD has been back in the 1.25s, which really takes us back to some of the lowest since June.
This is all the result of a shift in EURUSD exchange...
Sterling softer against the euro ahead of key inflation data
Sterling softer against the euro ahead of key inflation data
Pound sterling softened against the euro during yesterday’s session, reaching a low of 1.1610 on the interbank which was a two-week low for the pairing. Marginal gains for the euro represented a window of opportunity for euro sellers.
GBPEUR reached a new yearly-high last week but has since dropped back by more than a 1%.
Exchange rates continue to be driven by current and future interest rate policy. Market expectations are for the Bank of England to...
Sterling dips against stronger US Dollar in data heavy week
How will the pound finish August and perform in September?
As we often find, following a bank holiday, there is a lot to compress into the final days of the week.
That is certainly the case this week in the FX markets, we have a heavy economic calendar.
We have some key pieces of economic data to influence September’s interest rate decisions.
The FED, ECB and Bank of England all meet in the final weeks of September, and the FX markets will be looking at the current data...
Will the pound rise in September?
Will the next Bank of England hike lift the pound?
The pound could be in for some potentially better fortunes, if we do see the Bank of England raising interest rates next month.
Typically, we would state that a higher interest rate leads to a stronger currency. This is not always the case, but the idea is a higher interest rate makes that currency more attractive to hold.
The pound has been stronger this year owing to a higher interest rate, as it encourages more investment.
However, higher...
Pound Rises on ‘Higher for Longer’ Interest Rate Expectations
Sterling stronger as UK interest rates remain high
Sterling has been higher following a dip last week. Interest Rate expectations are setting the tone for some of the positions we are seeing so far.
The Bank of England raised interest rates as expected 25 bps last week taking UK interest rates to 5.25%. We did see Sterling dropping on the news.
Cable dropped to $1.2623, its weakest level against the dollar since late June. GBPEUR fell to 1.1565, both have since recovered.
This does highlight once again how...
Will inflation cause the Pound to rise?
Bank of England raise interest rates for the 14th time in a row
The Bank of England raised interest rates once again yesterday for the fourteenth time in a row. The central bank has committed to reducing inflation rates which remains well above target.
The current base rate is at 5.25% and we should expect more interest rate hikes to come before we see the Bank of England easing monetary policy.
Interest rates have now gone up on every occasion since December 2021.
This has brought the base rate...
Will the pound rise or fall on the Bank of Meeting tomorrow?
The pound is delicately poised ahead of a key interest rate decision
Sterling has been trading more strongly against a weaker Euro, but is suffering against a stronger dollar. Tomorrow's latest Bank of England decision could trigger some volatility.
Expectations are for a hike but the market is unclear about whether or not it will be 25 basis points or 50 basis points.
There is no doubt UK inflation is running too high, the latest reading was 7.9%. This is well above the Eurozone at 5% and...
Will the ECB interest rate decision halt sterling’s rise?
The ECB (European Central Bank) have their interest rate decision later today. In recent days sterling exchange rates have once again risen close to yearly highs. GBPEUR and GBPUSD are trading within range of 11- and 15-month highs respectively.
However, Eurozone inflation is still a lot higher than the 2% target set by the bank. Many are expecting another interest rate rise during today’s meeting. Markets are expecting a 25-basis point hike which could lend support to the value of the euro against the dollar...
