GBP EUR Could Head Lower After Growth Revisions

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...
New Zealand Dollar weakens further as Global Dairy Trade auction falls lower than expectations

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...

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...
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...

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...

Pound rebounds following lighter than expected inflation figures

Wednesday’s trading session saw the pound on the front foot, gaining back some of the losses from the past week against a basket of currencies. Inflation data released in the morning showed price growth slowed in July for the first time since September 2021. Could this be a signal that the cost-of-living crisis has begun to ease in the UK? The Bank of England stated last month that they expect inflation to peak at 13%. The drop in price growth does pose an interesting question...
GBP USD Exchange Rate Drops to Fresh Low as Truss Becomes New PM

GBP USD Exchange Rate Drops to Fresh Low as Truss Becomes New PM

The pound slid as low as 1.144 against the dollar on Monday – its lowest level since March 2020 – ahead of the announcement of the new Prime Minister. When, as widely expected, it was confirmed that Liz Truss had beaten Rishi Sunak in the race to 10 Downing Street, the UK currency managed to claw its way back into the 1.15 range. Truss has promised tax cuts and a new energy plan within the week, which could present the Bank of England with the conditions...

Fed hikes interest rate by 75 basis points with key BoE meeting looming

Yesterday evening the US federal reserve raised interest rates by 75 basis points. Raising the policy rate from 2.5% to 3.25%. This is the third 75 basis point hike in as many meetings by the Fed, highlighting again their intention to take a strong stance on inflation levels that have spiralled out of control. "The committee is strongly committed to returning inflation to its 2% objective," the Fed said in a statement. Markets now expect US interest rates to finish the year above 4%. For...
GBP USD Exchange Rate Drops to Fresh Low as Truss Becomes New PM

Pound to Dollar forecast: Should I buy US dollars now ?

In recent weeks Pound to Dollar rates, also known as cable exchange rates, have been on the rise. To put this into monetary value a £200,000 transfer into US dollars today compared to the middle of December, now generates $12,000 more. US Dollar weakness The US dollar has been on the decline due to the US Government shutdown. Donald Trump shutdown part of the Government in a bid to persuade Congress to back the wall that he wants built between the US and Mexico. The shutdown...