Brexit news and Bank of England meeting to set the tone for the Pound to Euro rates

Bank of England keep rates on hold which causes the Pound to fall against...

The Bank of England confirmed yesterday that they would be keeping interest rates on hold and the vote was split 7-2 in favour of keeping interest rates the same. The Interbank level fell from 1.1450 to 1.1380 minutes after the announcement as some now feel that an interest rate hike may be a long time away from coming. UK GDP data which came out a fortnight ago showed growth was at just 0.1% for the first quarter and this was one of the principle reasons for...
Sterling fails to make any inroads against the Euro despite positive UK services data

Will GBPEUR exchange rates rise or fall by the end of the week?

With GBPEUR exchange reaches back above 1.14, it seems like a good time for euro buyer to take advantage as I expect the pound could come under pressure on Thursday when the Bank of England announce their latest interest rate decision. The chances of a rate hike have dropped to 20% from 80% according to Lloyds and the reason for the fall is that UK economic data released last month disappointed. Retail sales, inflation and GDP all dropped significantly and recent Brexit developments are also...
Boris vs Jeremy and the impact on Pound vs the Euro

Sterling Weaker Ahead of Local Elections

UK Prime Minister Theresa May held her Brexit cabinet meeting yesterday afternoon which could offer further direction for the Brexit negotiations and hence the pound. The issue of the day is whether Britain should remain part of the customs union with the EU. Brexit negotiator Oliver Robbins is trying to steer the government towards a customs partnership that would keep some of the benefits of the single market although members of the cabinet are unlikely to vote in favour of this option. Overnight there has...
Pound to Euro Forecast - Leadership Contest Drives GBP/EUR Rate Lower

GBP/EUR trading around a 6-week low, will the pair continue to fall?

The Pound has come under pressure once again today, not just compared to the Euro but across the board of major currencies. Those planning on making a large transfer from Pounds into Euros are seeing the cost of Euros become more expensive on almost a daily basis at the moment, and there are a number of reasons for this. The financial markets had previously been pricing in an interest rate hike from the Bank of England, up to 0.75% which would be the highest rate...
Sterling continues to slide against the Euro Will the Pound fall below 1.10?

GBP/EUR stuck at pivotal point of 1.15 – Will rates break above or...

Sterling is currently sat around the 1.15 mark against the Euro and appears to be fairly range bound as we head towards the end of the trading week. Yesterday saw the most volatility for the pairing that we have seen this week following the European Central Bank interest rate decision and press conference, this led to a little Euro weakness and Sterling moving back up through 1.15. This rise was short lived however, as profit taking knocked the pound back below 1.15 and now we...
GBP/EUR forecast - ECB Meeting and EU Summit to take centre stage today

GBP/EUR hits 1.15

Draghi hints at prolonged QE Today at the European Central Bank (ECB) monetary policy meeting Mario Draghi the head of the ECB has indicated that Quantitative Easing (QE) could well continue into 2019 despite earlier hints that it would be ending this year. QE is pumping money into an economy in order to stimulate growth, current monthly increments are €30bn, if there was to be a cut you would expect the Euro to strengthen significantly. News that  QE could continue has caused GBP/EUR to move...

What will happen at the ECB meeting today?

The European Central Bank will be meeting later on today to discuss their latest plans for monetary policy. The current QE programme remains at €30bn per month and at the moment the expectation is that this will end towards the end of this year. I don't think we'll see any change to policy this month so all eyes will be focused on the tone of the press conference and whether ECB president Mario Draghi will suggest that any changes may be coming. Draghi has previously made...
Pound to euro rate forecast: Will rates rise or fall on the European elections and Brexit?

GBP EUR Moves Higher after Weaker EU Manufacturing Data

The pound remains close to some of the highest levels we have seen against the Euro in the last months creating a good opportunity for those clients looking to buy Euros. UK politics is still going to the big driver for sterling exchange rates in these coming weeks and months with the main topic of Brexit dictating the direction of travel. The pound has been boosted considerably against the Euro now that the second round of the Brexit negotiations have been concluded which covers...
Pound to Canadian Dollar exchange rates Will the pound fall further once the Tory leadership contest is over?

Is the trend of a strong April for the Pound about to end?

The seasonal trend of the Pound gaining throughout the month of April looks set to end this month, which is coincidentally the 13th month unlikely when the Pound is compared with the US Dollar. The Pound tends to perform well against most major currency pairs including the Euro during April, with the trend being attributed to the new tax year and a lot of dividend payments being made around this time in GBP denominated equities. It looks like 13th time unlikely as the Pound is trading...

GDP to influence exchange rates this week

The recent positive run for GBPEUR exchange rates came to an end last week, when UK inflation feel sharply and Governor of the Bank of England Mark Carney couldn't confirm the prospects of an interest rate hike in May. Sterling fell from the 1.16s to the 1.14s causing concern for euro buyers. Any further commentary from the Bank of England over the next couple of weeks before the decision will have the potential to cause further fluctuations. Other UK economic data in the form of...