Negative Retails Sales Figures put further pressure on GBPEUR

Pound hits lowest rate to buy Euros in 2018 caused by the potential of...

The Pound vs the Euro is now trading at its lowest level to buy Euros all year. The latest topic surrounding Brexit has not gone well and it appears at the moment that we're facing a no deal Brexit which has sent the Pound into a bit of free fall against the Euro. Since the talks began they have typically resulted in a lot of negativity for Sterling exchange rates against a whole host of major currencies and in particular vs the single currency. This...
Negative Retails Sales Figures put further pressure on GBPEUR

Pound falls against the Euro after Bank of England rate hike

The Pound came under renewed pressure against the Euro towards the end of the week even after the Bank of England chose to increase interest rates from 0.5% to 0.75% on Thursday. The Pound briefly touched toward 1.13 in the thirty minutes following the announcement but then the press conference confirmed what a lot of people have been thinking in that it will be some time before we see another interest rate hike. Part of the reason for Thursday's decision was to allow the Bank of...

GBP EUR ahead of Bank of England Meeting Today

The Bank of England meet today and will decide on whether or not to raise interest rates. Although the central bank is expected to hold rates the markets will be interested in the minutes which will include how members vote and also the commentary coming from Governor Mark Carney. The economic data over the last months has been softer which has given the Monetary Policy Committee a good reason to hang fire. The ongoing uncertainty with Brexit is also being cited as being a...

Euro strengthens as ECB board member drops hint

We've seen the Euro strengthen during today's trading session, as a member of the European Central Bank has dropped a hint regarding next week's June ECB meeting. The ECB's Peter Praet has given us a strong hint during a speech in Berlin that next weeks meeting could see the ECB signal the end of their assett-purchasing programme. Some economists are expecting to see September as the cut off point which is actually an shorter time frame than initially expected. Personally, I'm expecting to see the...
Pound vs Euro closes in on a 5 month high

Pound to Euro rate hits a 1-month high as Euro weakens due to Italian...

The Euro fell another half a percent against the Pound yesterday, after news broke over the weekend that the expected Italian coalition government is no longer looking likely to form. There were expectations that the five star movement and League would form the coalition over the weekend, but the Italian President Sergio Mattarella cancelled talks after the coalition put forward Eurosceptic, Paolo Savona for finance minister. The markets were already weary of the unfolding's in Italy due to the populist and Eurosceptic leanings, along with...

Euro weakens as Italian Government fails to form – How may this impact Euro...

The on-going political crisis in Europe has now deepened as news hit the wires over the weekend that the Five star movement and League parties had failed to come to an agreement and form a Government for Italy, heightening political instability in Italy and leading to Euro weakness. This may now pave the way for fresh elections in Italy and will more than likely lead to another long period of uncertainty not only for Italian politics but also for the Eurozone as a whole. There are...

What to expect for Pound vs Euro next week

Sterling Euro exchange rates have remained in a very tight range during the course of this week and although we have seen a lot of movement against a number of different currencies the GBPEUR pair has hardly moved over the last few days. During the middle of the week UK inflation data showed a fall to 2.4% and this means there is less evidence to support an interest rate hike in the near future and this has caused the Pound to struggle against the single...
Sterling on shaky ground

GBP/EUR rates dependent on UK economic data and EU politics this week

So far the week has been fairly flat for GBP/EUR exchange rates once, but there is plenty of economic data due out over the next few days that should create some volatility. Tomorrow we have the release of U.K inflation figures  along with a flurry of data from the Eurozone as the morning progresses. Inflation in the U.K is expected to have dropped off a little, from 2.5% to 2.3% and this may result in a drop in the value of Sterling against the Euro if...

Italian Politics and a positive end to the week for the Pound

It appears as though Italian politics are causing the Euro a problem as the Pound has shown signs of improvement and even EURUSD exchange rates are close to their lowest levels in months. Both the Italian parties the 5 Star Movement and Lega have both proposed plans to leave the EU in the future and this is clearly a cause for concern. They have also suggested that they will look to increase pensions for older Italians as well as considering a plan to create an amnesty...
Could GBP/EUR breach 1.13 this week?

GBP EUR Strength – Will Rates Hit 1.15?

The pound has rallied against the Euro taking rates for GBP EUR to a high of 1.1451 today. The pound has actually seen a poor day against all of the major currencies the exception being the Euro. The pound has been supported against the Euro after positive employment and average earnings data performed well. Unemployment remains at 4.2% which sits at a 42 year low whilst average earnings overtook inflation, something the Bank of England has been very keen to see happen. After the bank...