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Will the pound get stronger? Growth figures show a surprise positive reading on Friday

The UK looks set to avoid a recession in 2022 as GDP data was announced on Friday. The UK economy grew by 0.1% in November, with the services sector providing a welcome boost when a 0.2% expansion was announced. This came as a surprise to many forecasters, with a 0.3% GDP contraction the market expectation. Despite this, the pound failed to make any significant gains against the Euro, finishing the week trading at 1.1280 – a near 0.75% decrease since markets opened on Monday. The Pound...
GBPEUR Sees a Sharp Rebound with ECB Stimulus Plans

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...

Sterling exchange rates against Euro and Dollar this week

As we entered the new year, sterling ended a turbulent week on the up against both the euro and the dollar after a wave of data across the continent and the pond was released. The pound finished the week over 0.5 cents higher (1.1360) than where it started (1.1290) against the euro and at similar levels to where it started (1.2060) against the dollar. The pound managed to recover over 2 cents alone against the greenback on Friday after early week losses. The cause for...

UK economy expecting a tough year – how will this impact the pound?

UK economy expecting a tough year – how will this impact the pound? Pound sterling exchange rates experienced a tough end to the year 2022. Throughout last year the Bank of England raised interest rates in an attempt to cool-off rampant inflation. This saw interest rates rise from 0.25% to 3.5%. The interest rate hikes initially provided support for the pound, but the last few BoE meetings have been surrounded with negative commentary regarding the UK’s economic outlook. The cost of borrowing in the UK has...

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...

The Pound loses momentum, could next year bring further falls for GBP exchange rates?

GBP exchange rates have cooled during the month of December, with GBP/EUR and GBP/USD both easing from the 3-month highs they begun the month trading at. There had been a considerable upward momentum for GBP exchange rates after Jeremy Hunt became Chancellor of the Exchequer and reversed the questionable tax cuts made by the previous Chancellor. Rishi Sunak replacing Liz Truss also buoyed the financial markets sentiment towards the UK economy and this helped give the Pound a boost, but perhaps the honeymoon period is...
GBP EUR Rallies After Bank of England Rise in Interest Rates

BoE interest rate decision looms – will it help or hinder the pound?

BoE interest rate decision looms – will it help or hinder the pound? The Federal Reserve announced last night their latest decision to raise interest rates by 50-basis points. This move takes US interest rates to 4.5%, the highest level in 15 years. 50-basis points is the smallest hike since May after the Fed raised by 75-basis points at the previous four meetings. This decision was likely influenced by Tuesday’s CPI data which indicated inflation may have hit its ceiling. US CPI is at 7.1% vs...

Red hot week for economic data, as temperatures across the UK plummet

Things have been looking brighter for the pound in recent weeks and the pound finished last week strong, after suffering a near two and a half cent (1.2345 to 1.2106) slide against the greenback (GBP/USD) from Monday to Wednesday. The pound has benefited from an improved ‘risk on’ appetite in recent weeks and responds well to positive news. Cable finished the trading week on the 1.23 handle. The positive news in question relates to recent comments from US Federal reserve chair Jerome Powell’s comments around...
Pound to Euro Starts the Week off Steady

Is the pound set to weaken?

Sterling exchange rates hang in the balance Sterling exchange rates once again hang in the balance following a subdued start to the week. Yesterday, the pound recovered most of the gains lost during Tuesdays session, however, struggled to break much higher. Data released on Monday triggered the sterling sell-off after the pound had risen to monthly highs against the dollar and the euro towards the end of last week. PMI data confirmed the UK services industry contracted last month, which is negative for the country’s economic...
Pound to Dollar Rate Pares Losses

Will the pound continue to rise in December?

The pound has recently touched fresh highs against both the Euro and US dollar, begging the question will the pound continue to rise in December? Financial markets had become slightly more buoyant in recent weeks leading to sterling bouncing back from the October lows. If we cast our minds back to October and the Liz Truss and Kwasi Kwarteng 'mini-budget' fiasco, sterling has made a incredible recovery. We have moved near 20 cents higher on GBPUSD, from 1.03 to 1.22, and on GBPEUR near 10...