Why is the Pound dropping against the Euro?

Pound Euro close to 4 month lows The Pound Euro exchange rate is now close to its lowest level since September of last year. The Pound has been experiencing a difficult period vs the Euro for weeks since the start of December. The sudden turn of fortune for Sterling could be attributed to what happened in early December. The Bank of England hiked interest rates once again but the European Central Bank countered that by also hiking interest rates for the first time in months. This could be taken...

What will 2023 Bring For Sterling Exchange Rates?

Sterling exchange rates have dropped on the whole throughout 2022 and it is fair to say there are a number of quite obvious reasons behind the poor performance of the pound over the course of the year. Here is a summary of GBP paired against a selection of major currencies and the movement since 1st Jan 2022 as an example. GBP/USD -10.79% GBP/EUR -4.97% GBP/CAD -5.44% GBP/AUD -4.69% GBP/CHF -9.97% All in all, the above suggests the pound indeed had a torrid time of it, most notably shortly after Liz Truss...
GBP EUR Rallies After Bank of England Rise in Interest Rates

BoE interest rate decision looms – will it help or hinder the pound?

BoE interest rate decision looms – will it help or hinder the pound? The Federal Reserve announced last night their latest decision to raise interest rates by 50-basis points. This move takes US interest rates to 4.5%, the highest level in 15 years. 50-basis points is the smallest hike since May after the Fed raised by 75-basis points at the previous four meetings. This decision was likely influenced by Tuesday’s CPI data which indicated inflation may have hit its ceiling. US CPI is at 7.1% vs...

Sterling back on the front foot – will the rise continue?

Sterling back on the front foot – will the rise continue? Pound sterling has started the days trading on a positive foot gaining ground against a basket of major currencies. GBPEUR is trading within half a cent of the three-month high. Cable (GBPUSD) is trading close to four-month highs. A transfer of £100,000 is buying $17,000 and €8000 more vs the low of the last three months. Now could present a window of opportunity for those looking to buy foreign currency with sterling. Figures released yesterday showed...

Will The Pound Keep Rising This Week?

The Pound has had a fairly good week or two against most major currencies, so I thought I would look at the probability that Sterling exchange rates would continue to gain ground against them over the course of this week. Now that the Autumn statement has passed without any huge drama, unlike Kwasi Kwarteng's attempt, there is a feeling that there is a little more confidence in the U.K and investors are starting to head back into UK stocks and shares, thus heightening demand for...

Pound rises despite UK recession looming

The Pound Euro exchange rate has slowly started to increase in value during the course of the week after a slow start. Bank of England governor Andrew Bailey suggested at the recent change of policy that the UK is heading for the worst recession in its history. This caused the Pound to weaken but since then we have seen gradual gains vs the Euro, which has led to some good opportunities for anyone looking to send money to Europe at the moment. The Bank of England has...

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...
GBP EUR Exchange Rate: Weekly Review July 16  

Will Incoming Prime Minister Sunak bring stability for the Pound?

The Pound begun the week in a strong fashion off the back of news that former Prime Minister Boris Johnson opted to pull out of the Conservative leadership contest. Britain’s former Chancellor of the Exchequer, Rishi Sunak is now confirmed to step into the role of Prime Minister making him the youngest Prime Minister in around 200 years. Perhaps the uncertainty being lifted as to who would become Prime Minister was behind the boost in the Pounds value yesterday, although since then we have seen...
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...
GBP EUR Exchange Rate: The Week Ahead August 15th

Will the Pound rise against the Euro after ONS announcement?

Pound Euro gains this week The Pound Euro exchange rate has picked up once again towards the end of this trading week after the problems caused by last week’s mini budget. The statement made last week caused the Pound to plummet by as much as 5% during last Friday’s trading session. GBPUSD exchange rates also got close to their lowest level in history. Since then the Bank of England have stepped in and bought £65bn worth of bonds to shore up the market and this has...