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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...

Pound at its lowest against the Euro in 19 months, and 37 years against...

The pound is notably weaker today following the release of the latest UK Retail Sales numbers showing a surprise fall of 1.6%, which makes the economic slowdown anticipated, and likely recession ahead seem much worse than thought for Britain. As I write, GBPEUR levels have dropped to a 19-month low, with the day low at the time of writing 1.1399 on GBPEUR and 1.1350 on GBPUSD. The cable level is a 37-year low, the worst for sterling since 1985 against the US dollar. I am...

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...

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...

US Inflation figures give Dollar a huge boost in Tuesday’s trading

The Dollar has had a really positive day of trading against both Sterling and the Euro, with a gain over 1% against both during the Tuesday trading session. This is mainly down to higher than expected inflation numbers, overall CPI (Consumer Price Index) figures were released at 8.3% as opposed to expectations of 8.1% and given the Federal Reserve’s robust stance on interest rates this has heightened the chance of further aggressive rate hikes in the months to come. For those that are not regular readers...

Pound jumps on expectations that Liz Truss will announce huge economic plan – Sterling...

The pound has struggled to find many positive days in recent weeks, however, over the course of this morning we have seen sterling exchange rates creep up against all major currencies. The majority of this can be put down to a minor shift in sentiment and that investors and speculators alike appear to have some confidence behind the expected economic plans being muted by new Prime Minister Liz Truss. Expectations are for an economic package of £130 Billion to be announced in due course which would...
GBP EUR Could Head Lower After Growth Revisions

Pound to Euro forecast: Boris Johnson as PM provides Sterling with a boost against...

Boris Johnson wins Leadership contest to become next UK Prime Minister: How does this affect GBP/EUR rates? The pound to euro exchange rate has managed to improve following the news news that Boris Johnson has become the 77th British Prime Minister. After weeks of not knowing who will lead the country we have seen the pound make some gains vs the single currency. This has created some good short term opportunities for anyone looking to buy euros at the moment. However, I think the gains could...
Pound to Dollar Rate Boosted by UK Retail Sales

Pound to US Dollar predictions: Will the pound fall further against the dollar?

The pound has had a torrid time against the US dollar for the last 4 months. GBP/USD (cable) mid market exchange rates have dropped approximately 5.5%. To put this into monetary value a $250,000 purchase is now just under £11,000 more expensive. Brexit continues to hamper Sterling It's been heavily documented in previous articles and mainstream media around the globe, the on going Brexit saga is having a major impact on the value of the pound. Bookmakers are predicting that Brexiteer Boris Johnson will be taking...
GBP USD Jumps to Fresh March High

Pound to US Dollar forecast: When will the Fed cut interest rates?

When will the US cut interest rates? On Wednesday the Federal Reserve announced that they would once again keep interest rates on hold. However, the accompanying statement suggested that we could see interest rates being cut this year. With such a cautious tone I think Fed Chair Jerome Powell is gearing up to cut interest rates. US President Donald Trump has been extremely vocal about cutting rates but the Fed will have to remain impartial and independent. However, according to the report 7 of the 17...
GBP AUD Faces Higher or Bust Scenario at 1.7800  

Pound to Australian Dollar forecast: UK job market remains upbeat despite Brexit concerns

UK wage growth faster than expected The pound (GBP) rebounded from Monday’s concerning economic growth reading thanks to faster than expected UK wage growth – data that keeps alive the prospect of an interest rate rise before the year is out. Tuesday’s employment report not only showed average earnings – excluding bonus – exceeded expectations; it revealed that more new jobs were created than forecast in the three months from February to April. These figures were closely followed by the UK ILO unemployment rate figures...