The Pound holds onto yesterday’s gains, but where to next for GBP exchange rates?
Sterling exchange rates saw a small relief rally yesterday after news broke that the Northern Ireland Brexit deal has been agreed between the UK and the EU.
After recently dropping below 1.20 against the US Dollar, which is a key threshold the GBP/USD pair broke back above this level with the Pound climbing by roughly 1% against the US Dollar. There were also gains for the Pound against the Euro although not to the same extent. GBP/EUR remains in the 1.13’s with the pair remaining...
Why has the Pound begun to improve against the Euro this week?
Major economic data releases helping the Pound, and causing disruption for other major currencies
This week we have seen the Pound benefit from several economic data releases, surprising the market with more positive than expected readings, as well as some weaker data coming out of the European bloc.
The Purchasing Manager’s Index reading, which is a great indicator of the UK services sector’s economic position, posted above 50 to signal that this sector is now expanding in the latest month, as well as the manufacturing and...
Will the Pound continue to fall against the Euro & the US Dollar?
Sterling begun the week in a subdued fashion and traded within a very thin range throughout yesterday’s trading session.
There was little economic data released pertaining to the UK economy outside of housing data, which showed that property prices rose by just £14 between January and February which is the smallest increase reported by Rightmove since the property website begun recording property prices.
Throughout the day GBP/EUR barely broke a trading range of 25 pips, and this morning this trend of thin ranges has continued although...
Will the Pound vs the Euro continue to fall this month?
UK Retail Sales show a decline and the impact on GBPEUR rates
The Pound Euro exchange rate has been slowly falling lower each day over the course of the week as the UK economy fails to provide much good news.
UK Retail Sales showed an increase of 0.5% in January after falling the month before according to the Office for National Statistics.
However, sales compared to twelve months ago showed a fall of 5.1%.
With consumers being heavily impacted in the UK by the cost of living crisis...
Sterling softens following fall in UK inflation – where will the pound go next?
Sterling softens following fall in UK inflation – where will the pound go next?
UK inflation data released yesterday morning caused a large scale sell-off of the pound. GBPEUR had climbed to two-week highs prior to the announcement and cable was back trading in the 1.21 handle. However, both pairings are trading more than a cent lower at the open this morning.
Inflation figures revealed a fall in both CPI (Consumer Price Index) and core CPI data. The headline figure fell from 10.5% to 10.1% vs...
Sterling continues to climb but will this week’s data releases reverse this trend?
Sterling has managed to climb back above the 1.1300 trade level against the Euro and so far this week, it’s managed to remain above this level thanks to some better than expected data released this morning.
The GBP/EUR rate fell below 1.1150 earlier this month when the Bank of England hiked interest rates as expected to a base rate of 4%, but provided a dovish commentary in the minutes afterwards which put pressure on the Pound’s value.
Sterling has recovered against the Euro, and the US...
Sterling exchange rates are the biggest loser after last week’s interest rate changes
Although recovering to a certain extent from the multi-month lows seen late last week, the Pound appears to be now trading within new trading ranges after last week’s interest rate increase from the BoE (Bank of England).
In regards to the GBP/EUR exchange rate, it has been trading between 1.1300 and 1.1400 in the lead up to BoE monetary policy updates for good few weeks but now that the announcements have taken place we’re seeing new ranges.
At the time of writing GBP/EUR is trading just...
Sterling remains robust despite the IMF downgrading UK growth prospects
The UK is in the financial headlines for the wrong reasons this morning, after the IMF (International Monetary Fund) released a report downgrading the UK’s economic growth prospects.
Of the G7 economies, the UK is the only member whose economy is expected to fall into recession this year. The prediction is for a drop of 0.6% through 2023, which is almost a 1% drop from the previous prediction which was released as recently as October.
The reason for the downgrade is being attributed to increasing interest...
Sterling weaker following poor economic data – will the pound drop further?
Sterling weaker following poor economic data – will the pound drop further?
Sterling opened yesterdays session at a weekly low against the single currency. The pairing increased throughout the day but is trading more than a cent lower than the monthly high reached last week, following strong UK inflation data.
PMI data released on Tuesday morning is the catalyst for the latest move. PMI data (Purchasing Managers’ Index) measures the performance of the manufacturing and services industries. The index provides insight into the current and future...
GBP exchange rates remain flat despite concerning economic data released this morning
Government debt within the UK has reached its highest December figure on record according to figures released this morning. The currency markets have barely been impacted though, as these figures were expected, but it is a concern for the UK economy moving forward and could weigh on the Pounds value.
The government’s decision to support households and businesses with rising energy bills, along with increasing interest rates increasing the debt burden on national debt has pushed UK government borrowing to a record December high of...
