Pound to Euro Gains After Weaker German Retail Sales

Pound Sterling strikes back against the Dollar as ECB decision looms

Cable rates (GBPUSD) climbed to 6-week highs yesterday as the pound continued its comeback following the announcement of Rishi Sunak as the next Prime Minister. The pound also enjoyed improvements against the euro and the Canadian dollar. Gaining more than a 1% against the latter by close of play. Sterling opens the day a little softer. Political instability can weigh heavy on a currency and the last few weeks have been far from stable in the UK’s political arena. Jeremy Hunt was re-confirmed as Chancellor of...
GBP EUR Exchange Rate: Weekly Review July 16  

Will Incoming Prime Minister Sunak bring stability for the Pound?

The Pound begun the week in a strong fashion off the back of news that former Prime Minister Boris Johnson opted to pull out of the Conservative leadership contest. Britain’s former Chancellor of the Exchequer, Rishi Sunak is now confirmed to step into the role of Prime Minister making him the youngest Prime Minister in around 200 years. Perhaps the uncertainty being lifted as to who would become Prime Minister was behind the boost in the Pounds value yesterday, although since then we have seen...
GBP AUD Slumps After UK Cabinet Resignations 

Pound Sterling rises as Sunak expected to be third Prime Minister in a matter...

The pound has started off the week on the front foot against all major currencies, following another weekend of political twists and turns for the UK. As we headed towards the end of an eventful week, news broke that ex Prime Minister Boris Johnson was heading back from a Caribbean holiday to have a crack at  regaining his position at number 10, something that seemed a million miles away only a few weeks ago. As most readers will know, the UK is full of surprises at...
GBP USD Exchange Rate Plunges to Lowest Since September 2020

Inflation rises to 10% as the government is under pressure – how will this...

Data released yesterday confirmed inflation in the UK was once again back above 10%. These are highest levels seen in more than 40 years as the cost-of-living crisis intensifies in the UK. What does this mean for the pound? The Bank of England are tasked with keeping inflation under control and their target is 2%. With inflation spiraling out of control the bank has been raising interest rates to combat this. The raising of interest rates generally lends support to the value of the currency (the...

Pound set for another eventful day – Will the Pound rise or fall?

The Pound is set for a fairly volatile trading day again today, with politics being firmly in focus over the course of the day. The latest Chancellor Jeremy Hunt is due to release an emergency statement on the mini budget at roughly 11am today, which may involve further U-turns, tax hikes and changes to the plans laid out by Kwasi Kwarteng merely a few weeks ago. That mini-budget sent the markets into turmoil and dented the pounds value significantly, his exit and a U-turn recently have...

Will the government perform a U-Turn? Impact on GBPEUR & GBPUSD Rates

Will a u-turn be coming for the current government? Three weeks ago the Chancellor Kwasi Kwarteng announced his mini-budget. This caused a huge sell off for Sterling exchange rates. It also caused an issue for bonds and UK mortgages. However, since then the Pound Euro and Pound US Dollar has also improved. Indeed, Sterling Euro rates are currently close to a 2 month high creating some excellent opportunities to buy Euros with Pounds. The Bank of England recently stepped in and spent a huge amount of money to...
Pound to Euro Gains After Weaker German Retail Sales

Pound Sterling stages comeback following Bailey comments but remains fragile

The pound enjoyed a positive session yesterday with gains against every major currency. However, the gains only brought sterling exchange rates back to similar ranges seen for the last few days. Sterling opens the day slightly softer across the board.  Governor of the Bank of England Andrew Bailey prompted a sterling sell-off late into Tuesday’s session. He stated that the bank would remove its current emergency support for the UK bond market on Friday and that pension funds heavily invested in UK government bonds (known...
GBPEUR UK election: Why haven't pound to Euro exchange rates fallen?

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...

Pound Sterling Weakness – Why Is The Pound Dropping So Much?

Sterling exchange rates have taken a huge hit over the course of the days trading, as the new chancellor Kwasi Kwateng's mini-budget appears to have knocked the pound totally out of fashion. The pound has lost over 350bps against the Dollar sitting in the 1.08 territory, whilst dropping to 1.12 against the Euro and hitting the lowest level against the Swiss Franc since 1974 sitting in the 1.06s. There is now talk of an intervention and whether HMT will make an attempt late on Sunday night...
 GBP EUR Higher After Inflation Hits Another High 

Bank of England and mini budget – The impact on Sterling exchange rates

The Bank of England increased interest rates for the 7th time in a row by 0.5% to take the base rate up to 2.25%, which was the biggest single rate hike in years. This caused the Pound to fall briefly against both the Euro and US Dollar as there were some predictions that the Bank of England may have raised rates by as much as 0.75%. As this didn’t happen the Pound plunged almost immediately after the announcement but managed to reverse some of...