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...
Will the pound rise or fall on the Bank of England decision?
Tomorrow is arguably one of the most important days for the pound this month with the latest Bank of England interest rate decision. Investors will pay close attention to this event to determine the latest twist and turns in economic policy, and it can shape behaviour of the relevant currency.
Typically, the raising and lowering of interest rates by a central bank will lead to changes in sentiment towards that currency, by making it more or less attractive to hold. This is in a similar...
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...
Will the Pound to Euro exchange rate break above 1.16 this week?
The Pound has begun the week in a bullish fashion after the Spring bank holiday yesterday, with the GBP/EUR exchange rate hitting a fresh 6-month high this morning.
Despite the economic calendar in the UK being very sparse this week, the economic data releases overnight has provided the Pound with a boost.
To summarise the data released last night, overall shop price inflation has hit a fresh high according to the British Retail Consortium (BRC), although fresh food inflation has eased slightly for the first time...
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...
Pound hits monthly highs against the Euro and Dollar – will the rise continue?
Pound hits monthly highs against the Euro and Dollar – will the rise continue?
Sterling rose to monthly highs against a number of its major counterparts during yesterday’s session following stronger than expected inflation data. The pound rose against both the euro and the dollar during the most positive session of the year for the currency.
A transfer of £200,000 is buying €4000 and $11,000 more than the low of the last four weeks.
ONS data showed that UK inflation dropped from 10.7% to 10.5%. Inflation has...
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...
Pound hits record low against the US Dollar, and drops significantly against the Euro
Yesterday was a very difficult day for the Pound as financial markets appear to have lost faith in both the Bank of England’s monetary policy and the new cabinet’s mini budget.
Last Thursday the new Chancellor of the Exchequer, Kwasi Kwarteng announced his mini-budget outlining plans for a raft of tax cuts. Then over the past weekend he pledged further tax cuts in order to try and reinvigorate the UK’s stalling economy and attempt to counter the increasing inflation rates not seen in decades.
His plans...
Will the Pound to Euro rate recover after dropping from 10-month highs?
Earlier this morning the Pound to Euro exchange rate had fallen almost 1-cent from the 10-month high the pair reached yesterday morning.
The GBP/EUR pair broker above 1.1700 for the first time since August last year yesterday, whereas this morning the pair bottomed out at 1.1610 although some upbeat data released this morning have given the Pound a boost.
Pay growth within the UK has risen by 7.2% on an annual basis when the timeframe of February to April is measured. This figure excludes bonuses and...
Difficult end to the month for Sterling Euro Exchange Rates (Tom Holian)
Sterling Euro exchange rates have already experienced a huge fall since the start of December as the British economy has shown numerous signs of slowing down.
Fears are increasing of a Brexit and with the Bank of England now extremely unlikely to to raise interest rates until 2017 confidence in Sterling has really taken a tumble.
UK GDP was downgraded recently for the third quarter and I think we could be in for more of the same when this morning's first estimate of Quarter Four will...