Will GBP exchange rates remain strong despite recession fears?
Last week saw the Pound to Euro break above the 1.1650 handle for the first time this year, after remaining rangebound between 1.1600 to 1.1650 since the start of 2024.
The GBP/EUR pair have begun the week above 1.1650 even if only just, so the trend for the pair is gently climbing despite there being concerns for the UK economy falling into recession.
Retail Sales figures for December were released last week and came out below...
Will the Pound rise against the Euro?
2023 was a difficult year for many countries and their respective economies around the world as inflation was high at the start of the year. Inflation has rocketed in many nations after the pandemic with the UK rising to its highest level in decades. Many people feared it would continue to rise but in recent months inflation has started to come under more control and closer to the target of 2%.
With the Bank of...
October Pound Sterling Forecast – Will the pound Fall?
Pound Sterling Lower on UK Inflation Data
One of the key talking points today is this morning’s UK Inflation data which has shown a 6.7% year-on-year reading. This is slightly higher than expected but matches last month’s YoY figure.
The important Core Inflation number has dropped from 6.2% to 6.1%, but there probably isn’t enough in this data to suggest any major changes from the expectations the Bank of England will pause at their next meeting.
Expectations for the headline YoY reading were for a drop from...
Will the pound weaken further in October?
The pound weakens as the economic outlook remains fragile
The pound has been weaker in recent weeks as a number of events come together to create conditions for investors to be skeptical.
Chiefly, the Bank of England paused its latest interest rate hike cycle two weeks ago. The now lower predicted UK interest rate for the future has made sterling less attractive for investors to hold.
The UK's economic outlook has been much worse, with the latest Manufacturing data pointing to the worst figures in 14 years.
Looking...
Will the pound continue to fall? Sterling exchange rates hit multi-month lows
Sterling finished the trading week on the back foot, closing out at 1.1480 against the Euro a four-month low since 15th May.
Unfortunately, against the dollar it was a similar story with the week closing out at 1.2235 against the Dollar a six-month low dating back to the 27th March.
The main reason for Sterling’s demise is the uncertain UK outlook from the financial markets, largely due to the economic data prints in the week.
Primarily lower than expected inflation print on Wednesday changed the outlook of...
Will the ECB rate hike help the Pound improve against the Euro?
European Central Bank Interest Rate Decision
The European Central Bank hiked interest rates for the tenth time in a row yesterday afternoon.
Rising inflation has been a problem that central banks have had to deal with since the pandemic.
The Bank of England have also increased interest rates fourteen times in a row. The expectation is now for 'another one and done'.
The expectation is that we'll see potentially one more from the Bank of England before they pause to see the impact upon inflation.
The ECB are in arguably...
Sterling dips against stronger US Dollar in data heavy week
How will the pound finish August and perform in September?
As we often find, following a bank holiday, there is a lot to compress into the final days of the week.
That is certainly the case this week in the FX markets, we have a heavy economic calendar.
We have some key pieces of economic data to influence September’s interest rate decisions.
The FED, ECB and Bank of England all meet in the final weeks of September, and the FX markets will be looking at the current data...
GBP exchange rates remain resilient despite lower expectations for further rate hikes
Much of the Pounds price fluctuations this year have been driven by increases in interest rate hikes along with expectations of additional interest rate hikes in future.
The Bank of England (BoE) has hiked interest rates 14-consecutive times since December 2021, and this has taken the base rate to its highest level in 15-years. The base rate of interest currently sits at 5.25%.
Those of our readers planning on making an exchange of Pounds into another currency have benefited from the bullish approach from the BoE,...
Will the pound rise in September?
Will the next Bank of England hike lift the pound?
The pound could be in for some potentially better fortunes, if we do see the Bank of England raising interest rates next month.
Typically, we would state that a higher interest rate leads to a stronger currency. This is not always the case, but the idea is a higher interest rate makes that currency more attractive to hold.
The pound has been stronger this year owing to a higher interest rate, as it encourages more investment.
However, higher...
Have GBP exchange rates peaked?
The Pound has been in the financial headlines mostly for positive reasons through 2023, and up until now it remains the best performing currency within the G10.
Increasing interest rates to try and counter stubbornly high inflation levels have pushed the Pound higher, with GBP/EUR currently trading just over 1.1700 which is just over a cent from its annual highs.
GBP/USD is currently trading just below 1.2800, although last month it managed to break above 1.3100. At its current level it’s over 8% up against the...