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...
Three Key Events in a Vital 72 hours for GBPEUR and GBPUSD Exchange Rates
The beginning of this week in the UK was very sombre with Her Majesty’s funeral and a UK Bank Holiday. This meant UK markets were shut, and ensured a fairly sleepy start to the week from a currency perspective, with sterling still nestling in the doldrums following the poor Retail Sales data from last week.
The rest of this week looks far from calm however, with three key events that could trigger market movements for the pound, US dollar, Euro and many other currencies. The...
Will the Pound continue to improve against the US Dollar?
Pound Dollar rates hit 3 month high
The Pound vs the US Dollar is now trading at its best levels to buy US Dollars with Pounds since the end of August.
With the Pound improving this has created some good opportunities for those looking to convert Pounds into US Dollars.
The US Dollar has slowly begun to weaken following falls in US inflation recently as it appears as though the Fed's policy of interest rates has started to work.
Inflation is still extremely high in the UK whilst...
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...
Will the Pound Remain Steady after Surprise Dip in Inflation ?
The pound has been relatively steady today following a surprise dip in the headline Inflation numbers. In welcome news across the country, the number came in at 9.9% higher year on year for August, versus the 10.2% numbers from last month for July. The important point is the number has been trending higher since the beginning of the year so this marks a turning point and could potentially signal a change in policy ahead. Inflation is very influential on interest rates, and interest rate...
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...
Sterling rallies after UK inflation stays high – Will the pound gain strength this...
The Pound rallied and saw some gains in the recent week finishing at 1.1423 against the Euro and 1.2392 against the Dollar. The pound strengthened after the UK labour market data on Tuesday displayed a new record high for UK wages showing the UK is nowhere near finished with high inflation thus putting pressure on the Bank of England (BoE) to raise the interest rate by 50 basis points.
This upswing in the Pound continued after Wednesday showing a smaller than expected decrease in inflation...
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...
Pound Sterling Forecast – Sterling starts the week on the front foot
Sterling exchange rates have started the week off fairly positively against most major currencies, most notably continuing the strong finish to last week against the Euro, with GBP/EUR now sat above 1.1650.
The reason this pairing in particular has moved in Sterling's favour more than others is down to the ECB (European Central Bank) interest rate decision and press conference delivered by Christine Lagarde on Thursday.
The ECB did raise interest rates as expected, however there was a slightly dovish tone around this hike, there were...
US Dollar improves against the Pound and the Euro
US Dollar vs Pound hits 3 week high
The US Dollar vs both the Euro and the Pound has started to increase once again ahead of the latest US employment data due out later today.
The US ADP jobs report published yesterday was stronger than expected and this has provided further levels of support for the US Dollar.
The most recent Federal Reserve minutes were also published this week which has signalled that we could see further interest rate hikes moving into this year.
As we look ahead...
