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...
Will we continue to see the Pound gain strength against the Dollar on the...
Last week saw Sterling gain ground on the Euro and the Dollar. With the Pound ending the week at 1.1711 against the Euro and 1.2738 against the Dollar.
The Pound saw strength as although the consumer price index dropped from 7.9% to 6.8% core inflation which strips out all the volatile items that affect inflation increased from 6.8% to 6.9% thus showing inflation is still embedded in the economy. This poses the question of how aggressive will the Bank of England (BoE) need to be...
Sterling exchange rates climb in the lead up to tomorrows key Inflation data release
The Pound rose earlier this morning after the latest wage growth data was released by the Office of National Statistics (ONS).
The data reported that basic wages within the UK grew at a record pace in Q2 this year, as wages excluding bonuses were 7.8% higher than a year earlier during the same time period.
This is also the largest increase since records begun back in 2001, and it adds to the pressure on the Bank of England to try and bring down increasing inflation levels.
Tomorrow...
Will the latest inflation figures help the Pound get stronger?
Last week was a more volatile one for the Pound as GBPEUR and GBPUSD saw 1 cent swings in their pairings, ending the week at 1.159 and 1.269 respectively. Sterling had been riding the recent highs off the back of their 14th consecutive rate hike in the week prior, and there were indications from the Bank of England that this may not be the end of the hike streak. There is currently an 85% chance of another 25 basis point hike at the meeting...
GBP exchange rates remain steady but could Friday’s GDP data change this?
Now that last week’s busy economic calendar is out of the way, this week feels like more of a typical August week where economic data releases can be quite limited.
The Pound to Euro exchange rate remains around the 1.1600 level, and yesterday there was little market movement throughout the entire day of trading.
The Bank of England’s decision to hike interest rates by 0.25% as widely expected resulted in another drop for the Pound in the 24-hours after the announcement, which is a pattern we’ve...
Could the Bank of England surprise the markets again this week?
The Pound has managed to hold onto much of its recent gains against the Euro recently, as it continues to trade towards the top end of its annual range.
Last month increasing expectations of further interest rate hikes pushed the Pound to a high of 1.1750, and at the time of writing the GBP/EUR pair are trading within 0.75 cents of this 11-month high.
This week, the Bank of England (BoE) is expected to raise interest rates to the highest level in 15-years.
The general expectation is...
Will the Pound fall if the UK enters a recession?
At the time of writing the Pound is trading towards the top end of its 2023 ranges against most major currency pairs.
Last week, the Bank of England opted to hike interest rates by 0.5% which came as a surprise to financial markets, after a hike of 0.25% was expected.
Sterling exchange rates were quite volatile in the aftermath of the decision to raise rates by 0.5%, and GBP/EUR peaked just below 1.1750 which is the highest level the pair have reached so far in 2023,...
Pound Sterling Forecast – Has the Pound Peaked?
Does the latest FX research and data suggest the pound has peaked?
The pound has very recently touched fresh highs on GBPEUR of 1.1546 and GBPUSD of 1.2679. But since those highs this month, we have seen declines down to 1.1475 and 1.2457 respectively.
This begs the question, has the pound peaked?
Well, our research for a number of weeks has exposed potential sterling weakness. We highlighted the historical “Sell in May, go away” trend of sterling being weaker in May here. This strategy, had seen the...
