Pound Sterling Forecast: How to get the Best Pound to Euro Exchange Rate
Pound Sterling Forecast, what we can expect for the pound?
Getting the best pound to euro rate is about being prepared and tracking key economic data and information.
"Hope", is not usually a good strategy. Relying purely on "luck" and hoping that the market will magically go your way can often lead to disappointment.
Just because you cannot totally predict the direction on rates, doesn't mean you should just give up and accept your fate.
To help my clients get the best rates, I take the time to...
Pound loses value as US services data boosts the Dollar
Pound loses value as US services data boosts the Dollar
Pound sterling opens softer this morning after losing value against the dollar. The sell-off begun during yesterday afternoons session. Cable (GBPUSD) rates have dropped below the key 1.25 handle which could be a signal of things to come. The pairing is currently tracking close to the 3-month low which represents a real opportunity for dollar sellers.
ISM PMI data confirmed an expansion in the US services sector last month. A reading above 50 signals an expansion...
Sterling softer against the euro ahead of key inflation data
Sterling softer against the euro ahead of key inflation data
Pound sterling softened against the euro during yesterday’s session, reaching a low of 1.1610 on the interbank which was a two-week low for the pairing. Marginal gains for the euro represented a window of opportunity for euro sellers.
GBPEUR reached a new yearly-high last week but has since dropped back by more than a 1%.
Exchange rates continue to be driven by current and future interest rate policy. Market expectations are for the Bank of England to...
Will the pound rise in September?
Will the next Bank of England hike lift the pound?
The pound could be in for some potentially better fortunes, if we do see the Bank of England raising interest rates next month.
Typically, we would state that a higher interest rate leads to a stronger currency. This is not always the case, but the idea is a higher interest rate makes that currency more attractive to hold.
The pound has been stronger this year owing to a higher interest rate, as it encourages more investment.
However, higher...
Sterling on the front foot following UK inflation data
Sterling on the front foot following UK inflation data
Sterling is back on the front foot against the euro and dollar following yesterdays release of inflation data. The pound is trading within 0.5% of the 11-month for GBPEUR making it an opportune time for euro buyers. Cable rates (GBPUSD) have risen from the 6-week low seen on Monday and pairing is trading comfortably above the 1.27 handle at the time of writing.
Yesterday’s data confirmed core inflation remains sticky coming out at 6.9% vs expectations of...
Will the Bank of England help or hinder pound sterling?
Today’s Bank of England interest rate decision could help or hinder pound sterling’s future value. It is almost certain that the Bank will raise interest rates for the 14th consecutive time at today’s meeting. A pause in rates would cause shock to the market and likely trigger wide-scale sell-off of the pound.
Current expectations are for a 25-basis point hike. However, there is a chance that the Bank opt for 50-basis points. This would mean back-to-back 50 basis point hikes causing a 1% raise in...
Will the pound rise or fall on the Bank of Meeting tomorrow?
The pound is delicately poised ahead of a key interest rate decision
Sterling has been trading more strongly against a weaker Euro, but is suffering against a stronger dollar. Tomorrow's latest Bank of England decision could trigger some volatility.
Expectations are for a hike but the market is unclear about whether or not it will be 25 basis points or 50 basis points.
There is no doubt UK inflation is running too high, the latest reading was 7.9%. This is well above the Eurozone at 5% and...
Sterling drops against the Euro and Dollar following inflation reading
Sterling has dropped in value against the euro and dollar following yesterday’s release of UK inflation data. Inflation has dropped to 7.9% which is lower than the expectation of 8.2% and the lowest reading for more than a year.
GBPEUR is trading more than 2% lower than the highs seen in the last couple of weeks. A transfer of €200,000 is buying £3400 more.
The unexpected drop off has shifted expectations on what the Bank of England will do next regarding interest rates. UK interest rates...
Sterling back above 1.17 against the euro!
Sterling back above 1.17 against the euro
Pound sterling opens this morning’s session back above 1.17 against the euro. 1.17 is a key threshold for the pairing and has only been breached on a couple of other occasions this year. GBPEUR is therefore trading within range of the highest levels seen since August 2022.
A transfer of £200,000 is buying €12000 more vs the lowest level of 2023. This presents a real opportunity for euro buyers.
Forecast data collated by Lumon from circa 50 banks and financial...
Sterling’s rise continues against the euro and the dollar
Sterling's Rise
Sterling is continuing to rise against the euro and the dollar. Sterling had entered the year on a negative footing due to forecasts suggesting the UK would face a deep and lengthy recession in 2023.
The recent economic data has directly contradicted the earlier forecasts. Yesterday, UK GDP posted a positive reading of 0.2%, showing that the UK economy grew month-on-month, contributing to sterling's rise.
The Bank of England and IMF have now revised their economic forecasts for the UK and are both predicting growth...
