Pound rises as UK economic sentiment improves
Pound rises as UK economic sentiment improves
The economic outlook for the UK at the start of 2023 made for grim reading and encouraged the sterling sell-off that began just before Christmas. Last summer, the Bank of England released economic forecasts that suggested the UK was going to face a long a deep recession, entering negative growth towards the end of 2022 and not recovering until 2024.
Since then we have seen the fall of ‘trussonomics’ and new leadership at the very top of government. Jeremy...
Sterling remains in the balance – will growth figures strengthen the pound?
Sterling remains in the balance – will growth figures strengthen the pound?
Sterling exchange rates have remained relativity balanced this week. The pound was boosted against the dollar last week following a ‘dovish’ hike from the Federal Reserve. The Bank of England also raised rates which helped support the pound against the euro. Following the latest release of services and manufacturing PMI data, GBPEUR has been range bound between 1.1340 – 1.14. Cable (GBPUSD) has been a little more positive for sterling sellers reaching highs...
GBP exchange rates climb after positive comments from BoE Governor Bailey
GBP exchange rates have begun the day on the front foot after some positive comments from Bank of England Governor Andrew Bailey yesterday evening.
He stated that hiking interest rates again remain a tool at the Bank of England’s disposal to tackle rising inflation.
Last week it emerged that UK inflation levels surprisingly remain above 10%, when markets had forecast a fall below this threshold for the first time since August last year. This pushed GBP exchange rates higher as the chances of additional interest rate...
Will the Bank of England help or hinder sterling exchange rates?
Will the Bank of England help or hinder sterling exchange rates?
Last night the US federal reserve raised interest rates by 25-basis points against a backdrop of financial instability in the US banking sector. US interest rates are now at the highest since 2007. At the start of the week many had expected the Fed to hold rates at their March meeting. The SVB banking failure caused concern throughout the sector and further interest rate rises could inflict more pain on troubled banks.
Cable (GBPUSD) benefitted...
Will the Pound continue to climb this week, and how could the BoE’s meeting...
The Pound climbed in the lead up the Spring Budget last week and following it, Sterling exchange rates continued to climb as markets seemed impressed by the rhetoric outlined by the Chancellor.
For the first time in just over 3-months, GBP/EUR broke above 1.1400 and managed to consolidate its position above that key threshold. The reason I believe that 1.1400 is a key threshold and the Pound managing to break above and consolidate above this level, is because it had previously been tested on three...
Will the Pound strengthen this week?
The Pound reached multi-week highs last week after Chancellor Jeremy Hunt did his best at calming the markets with his Spring Budget release on Wednesday.
The capturing headline that the UK will not enter a technical recession this year’, as well as expectation of growth in the years afterwards, boosted the Pound heading into what could also be a volatile week.
The Bank of England will announce the next steps forward in terms of interest rates on Thursday, as the Monetary Policy Committee meet. Catherine Mann,...
Sterling hits two-month highs – how will today’s ECB decision impact rates?
Sterling had one of its most positive sessions of the year against the euro during yesterday’s trading. The pound hit two-month highs against the single currency following positive comments from Chancellor of the Exchequer Jeremy Hunt.
Hunt was in parliament to deliver the UK budget (Government Fiscal Plan) for 2023 and announced that the UK would avoid a recession in 2023. Hunt’s comments will not come as a surprise for many market analysts after a recent stream of positive or less than negative economic data...
Sterling, Euro & US Dollar news this week
Pound, Dollar & Euro news this week
The Pound started last week falling against both the Euro and Dollar but rallied towards the end of last week, will this continue ?
Dollar strengthened against the Pound to start last week after hawkish comments from the federal reserve (FED) chair Jerome Powell.
On Tuesday the 7th of March Powell stated, “The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated”.
This aggressive...
Sterling under pressure against the euro and dollar – will the pound weaken further?
Sterling under pressure against the euro and dollar – will the pound weaken further?
Sterling exchange rates have once again come under pressure following comments from Fed chairman Jerome Powell and Bank of England member Catherine Mann regarding future interest rate policy.
GBPEUR is trading within range of the 5-month low, which makes now an opportune time for euro sellers. A transfer of €100,000 is buying £3500 more vs the 5-month high for GBPEUR. Cable (GBPUSD) has also clawed back and is very close to the...
Sterling loses positive gains – will the pound continue to weaken?
Sterling loses positive gains – will the pound continue to weaken?
Sterling exchange rates plummeted during yesterday’s trading session as negative sentiment surrounding the UK’s economy continues to weigh on the currency. Less than 24 hours prior, the pound was trading at 4-week highs against the single currency.
The pound had been boosted by the announcement that the UK and EU had reached a deal over trading arrangements in Northern Ireland known as the Windsor framework. Since the Brexit vote in 2016 the pound has lost...
