UK Inflation Stagnates at 8.7% Will the pound rise on the Bank of England...

Will Sterling be strong after the Bank of England decision? So, an interesting couple of days ahead of us with the Bank of England interest rate decision tomorrow, and we have had the latest Inflation data this morning. The headline inflation reading is 8.7%, with 7.1% as the core reading. We know how important Inflation data has been in the Bank of England’s assessments on interest rates. The last reading Inflation dropped to 8.7% versus the 8.4% expected, this caused sterling strength and is arguably one of the...
Pound to Euro Starts the Week off Steady

Pound hits 10 month high vs Euro and 14 month high vs Dollar

The pound finished the week rallying against the Dollar and the Euro finishing at 1.1723 against the Euro and 1.2808 against the Dollar. In the week the Pound Euro rate reached a 41-week high at 1.1716 and the Pound reached 1.2848 against the Dollar, which was the strongest level since April 2022. The pound saw gains against the Dollar and the Euro as a there was an unexpected fall in the unemployment rate and a higher increase then expected in wages and job creation in...

Pound Euro exchange rate hits 7 month high

The Pound vs the Euro exchange rate has hit its highest level since December last year The Pound has gained after revised figures published by Eurostat this week showed that Europe fell into recession as prices rose for consumers. According to the release, the economy contracted by 0.1% as well as contracting during the final quarter of last year. Two quarters of negative growth cause a recession. This is one of the big factors as to why the Pound has gained recently against the Euro. With Germany officially...

Pound to Euro breaches 1.16 for the first time this year

Pound to Euro exchange rates breached 1.16 yesterday, for the first time since mid-December. Sterling’s rise is being driven by improved economic forecasts for the UK and future interest rate expectations. A transfer of £100,000 is buying €5000 more vs the low of the year. UK inflation remains elevated at 8.7% which is much higher than the Bank of England’s target level of 2% and higher than expectations of 8.2%. The probability of a UK interest rate hike on the 22nd of June is now extremely likely....
GBP EUR Recovers from Early Losses on EU Trade

Pound reaches 2023 fresh highs against the Euro

Pound reaches fresh levels against the Euro but will this continue? The pound reached the highest points of the year against the Euro this week. GBPEUR rates have traded at 1.1592 highs so far today. The pound is benefitting from expectations of higher UK interest rates. It is worth pointing out sterling has been see-sawing all year (albeit trending higher) over such expectations. Markets can be very fragile and whilst this sentiment appears established, any data could easily change this. Interest rate expectations are key, and crucial...

Will Sterling continue to rise against the Euro this month?

Pound Euro exchange rate hits 6 month high The Pound Euro exchange rate has hit its highest level since early December. In the meantime, the UK economy continues to show small improvements. The Bank of England has continued to hike interest rates since December 2021. We have now seen 12 interest rate hikes in a row since the cycle started. The US has demonstrated that by raising interest rates aggressively, this has helped to combat rising inflation in the world's leading economy. However, the difference the UK faces is one...
GBP EUR Rallies After Bank of England Rise in Interest Rates

Sterling strengthens ahead of Bank of England interest rate decision

Sterling stronger ahead of Bank of England decision 2023 is turning into a positive year for the pound after a disappointing end to 2022. Sterling is the strongest performing major currency of the year and exchange rates remain elevated against many of its major counterparts. Cable (GBPUSD) is trading close to one-year highs while GBPEUR hit a 2023 yearly high during yesterday’s session. The pound is also trading close to yearly highs against the Loonie (CAD), Kiwi, and Aussie. What is driving sterling higher? The pound has been...

Fed signals pause in interest rate hikes – will the ECB help or hinder...

The US Federal reserve announced last night that they would be raising interest rates for the 10th consecutive time. The move raised US interest rates by 25 basis points up to 5.25%, the highest level since 2007. In general, interest rate rises can lend support to the value of the currency, however, the US dollar lost ground across the board following the Fed’s announcement. The Fed indicated that future interest rate rises could be limited given the potential restraint on the economy. Markets have digested...

UK avoids recession – will the pound strengthen moving forward?

Pound Sterling has been range-bound against many of its major counterparts over the last two weeks. Most notably, GBPEUR which has traded within a cent from the high to low. Cable (GBPUSD) has traded within a 2-cent range and struggled to find support above the 1.25 handle. The pound has strengthened in value due to the revised UK economic forecasts, however, it would seem the positivity has ended here for the pound and that new data will be needed to push the pound out of...
Pound to Euro Starts the Week off Steady

Will the pound rise?

The pound rose to fresh highs against the Euro and US dollar yesterday, on expectations the Bank of England will need to raise interest rates further and sooner in the future. In stating the Bank of England will need to “see the job through” in referring to tackling the UK’s stubborn inflation problems, financial markets are insinuating a rate hike at May’s next Interest Rate decision. Huw Phill, the Bank of England’s chief economist was speaking in Geneva, and whilst his comments were a trigger for...