Will the Pound vs the Euro continue to fall this month?
UK Retail Sales show a decline and the impact on GBPEUR rates
The Pound Euro exchange rate has been slowly falling lower each day over the course of the week as the UK economy fails to provide much good news.
UK Retail Sales showed an increase of 0.5% in January after falling the month before according to the Office for National Statistics.
However, sales compared to twelve months ago showed a fall of 5.1%.
With consumers being heavily impacted in the UK by the cost of living crisis...
Pound starts to recover against the Euro
The pound managed a surprising recovery during the week to the 10th February, against the Euro the pound managed to climb 1 ¾ cents from the week opening to the week close (1.1160- 1.1330). Against the Dollar the pound managed to claw back a similar amount with the week high topping out just under the 1.22 handle.
As previously mentioned in these reports, the week prior saw a heavyweight clash from the 3 central banks, where the doubt was cast over the future of the...
Pound Euro rate falls after Bank of England ECB Rate Hikes
Pound Euro Rates fall after UK Interest Rate Decision
The Pound Euro exchange rate fell from its recent monthly highs of above 1.14 into the 1.11 levels shortly after the interest rate announcement made by the Bank of England.
The current rate of UK inflation is at 10.2% but the central bank are expecting interest rates to fall to as low as 5.2% towards the end of 2023.
Although petrol prices at the pumps have started to fall recently, wholesale gas prices still remain relatively high.
This is...
Sterling remains robust despite the IMF downgrading UK growth prospects
The UK is in the financial headlines for the wrong reasons this morning, after the IMF (International Monetary Fund) released a report downgrading the UK’s economic growth prospects.
Of the G7 economies, the UK is the only member whose economy is expected to fall into recession this year. The prediction is for a drop of 0.6% through 2023, which is almost a 1% drop from the previous prediction which was released as recently as October.
The reason for the downgrade is being attributed to increasing interest...
Pound Euro exchange rates to experience an uncertain period in the weeks ahead
Uncertain period ahead for the Pound Euro exchange rate
The Pound Euro exchange rate has been drifting slowly lower during the course of the week so far as more pressure gets piled on the British economy.
With many strikes having taken place already and with further strikes scheduled over the next few weeks the UK remains in a very uncertain period.
Teachers, nurses, rail strikes to name but a few have all caused the government to make some difficult decisions in order to appease those sectors involved...
Sterling rallies after UK inflation stays high – Will the pound gain strength this...
The Pound rallied and saw some gains in the recent week finishing at 1.1423 against the Euro and 1.2392 against the Dollar. The pound strengthened after the UK labour market data on Tuesday displayed a new record high for UK wages showing the UK is nowhere near finished with high inflation thus putting pressure on the Bank of England (BoE) to raise the interest rate by 50 basis points.
This upswing in the Pound continued after Wednesday showing a smaller than expected decrease in inflation...
Why is the Pound dropping against the Euro?
Pound Euro close to 4 month lows
The Pound Euro exchange rate is now close to its lowest level since September of last year.
The Pound has been experiencing a difficult period vs the Euro for weeks since the start of December.
The sudden turn of fortune for Sterling could be attributed to what happened in early December.
The Bank of England hiked interest rates once again but the European Central Bank countered that by also hiking interest rates for the first time in months.
This could be taken...
Pound hits lowest rate since ‘mini-budget’
Yesterday saw the pound weaken further against the euro, falling to the lowest GBPEUR rate since the now infamous Liz Truss/Kwasi Kwarteng ‘mini-budget’. GBPEUR was trading at 1.1257 during the low of yesterday’s session.
The downward pressure on the pound begun a month ago now following the European Central Banks (ECB) decision to hike interest rates by 50 basis-points. The pound has lost 3.5% against the euro in the last 4 weeks.
A transfer of £100,000 is currently buying €4100 less vs a month ago. In...
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...
What will 2023 Bring For Sterling Exchange Rates?
Sterling exchange rates have dropped on the whole throughout 2022 and it is fair to say there are a number of quite obvious reasons behind the poor performance of the pound over the course of the year.
Here is a summary of GBP paired against a selection of major currencies and the movement since 1st Jan 2022 as an example.
GBP/USD -10.79%
GBP/EUR -4.97%
GBP/CAD -5.44%
GBP/AUD -4.69%
GBP/CHF -9.97%
All in all, the above suggests the pound indeed had a torrid time of it, most notably shortly after Liz Truss...
