Pound vs Euro closes in on a 5 month high

GBP/EUR exchange rates next move all down to Bank of England decision

GBP/EUR exchange rates have remained fairly stable over the course of the trading week, keeping within similar levels that we have seen in recent weeks. Yesterday, European economic data failed to impress but that was still not enough to break the pairing out of this range and had very little impact on market levels. Brexit appears to be holding back the Pound from making any major positive movements against any currency at the moment, the uncertainty that it brings is casting a grey cloud over the...
Pound to Euro Forecast – Brexit Secretary Dominic Raab Resigns

Minimal data out today for the U.K – European growth and U.S employment figures...

We have minimal economic data out for the U.K today, the Pound has remained fairly flat in early morning trading. As the day progresses we do have other economic data releases from around the world that may impact the Pound against the Dollar, Euro and Canadian Dollar along with other major currencies. At 10:00am today we have the release of European growth figures, expectations are for the quarter on quarter figures for the first quarter of 2018 to remain at 0.4% with year on year growth...
GBP/EUR exchange rates - What to look out for this week

Italian political issues appear to be the main driver for currencies so far this...

The week so far has seen quite a lot of volatility for Sterling exchange rates, however the reasons for the Pound moving against most major currencies are not down to political or economic data from the U.K but actually mainly driven by Italian politics, Donald Trump and North Korea. Italian politics has been one of the main focuses for the week for investors and speculators, as news broke earlier in the week that the two big winners from the election - Five Star and The...

GBP Forecast – Sterling Finds Some Support as Italian Political Crisis Deepens (Matthew Vasssallo)

Sterling has found some welcomed support against the EUR over recent days, as concerns over the Italian political crisis intensified over the weekend. GBP/EUR rates hit a high of 1.1467 this morning following a complete breakdown in negotiations over the weekend, between the anti-establishment Five Star Movement and the far-right League. The two leading parties have failed to form a working government, with the on-going political turbulence weighing heavily on investors, who have since shied away from the single currency. This in turn has inadvertently boosted...

GBP Forecast – Market Confidence in the UK Economy Remains Minimal (Matthew Vassallo)

Those clients with a Sterling currency exchange to execute, should be keeping a close eye on this morning’s Unemployment data and Average Earning’s figure. The UK’s official Unemployment rate fell last month, coming out below the markets expected figure at 4.2%. This along with Average Earning’s increasing, was one of the last positive data releases for the UK economy and those clients holding GBP will be hoping for a similar improvement this month. The Pound has struggled of late, with market confidence evaporating in the UK economy,...
Pound to Dollar forecast - Will GBP USD rise or fall on Brexit?

Difficult period ahead for the Pound after Bank of England keep interest rates on...

The Pound has had a difficult end to the week following the announcement by the Bank of England to keep interest rates on hold at just 0.5%. The split was the same as before with MPC members Ian McCafferty and Michael Saunders both voting for an interest rate hike. This did not come as too much of a surprise after the very low GDP figures a fortnight ago but what caused the Pound to really drop was that the UK's growth forecast was downgraded from...

What may the Bank of England interest rate decision lead to for Sterling exchange...

Following a reasonably quiet start to the week for U.K economic data anyone with a requirement to exchange Sterling into another currency or to exchange another currency back into Sterling may wish to keep a keen eye on exchange rates over the course of the trading day tomorrow. At midday we have the release of the Bank of England interest rate decision and this will be key for the performance of the pound for the rest of the week. The Pound had initially hit the highest...

GBP Forecast – Sterling Struggling to Regain Ground After Last Week’s Losses

The Pounds has failed to recover from its losses on Friday, with investors once again seemingly turning their backs on Sterling. Friday’s poor UK Gross Domestic product (GDP) figures have sapped investor confidence and dampened the markets expectations, regarding a rate rise by the Bank of England (BoE) at their policy meeting next Thursday. It had been widely anticipated that the central bank would raise rates in line with a strong run of UK economic data but with the latest set of inflation figures falling back...

Will the Bank of England raise interest rates? This will be key for Sterling...

The key to the performance of the Pound in the next few weeks will be the likelihood of an interest rate hike, which has dipped a little over the past week. Bank of England Governor Mark Carney commented last Wednesday evening that economic data in the next few weeks will be key to whether or not the Bank of England will make their move and raise interest rates on May 10th. Before these comments along with the low inflation figures that we received earlier that day,...
Sterling on shaky ground

The Fragility of the Pound has been Exposed (Daniel Johnson)

BOE Rate hike could be delayed The Pound has suffered over the last two days of trading. We saw strong gains earlier in the week, hitting highs against several major currencies. GBP/EUR hit 1.1599 for example. This was based on a host of strong UK data such as a 43yr low on unemployment, strong retail sales data and an increase in average wage growth. There was also a Brexit transitional deal all but agreed, with the UK being granted signal market access for two years before...