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...
GBPEUR UK election: Why haven't pound to Euro exchange rates fallen?

Pound hits record low against the US Dollar, and drops significantly against the Euro

Yesterday was a very difficult day for the Pound as financial markets appear to have lost faith in both the Bank of England’s monetary policy and the new cabinet’s mini budget. Last Thursday the new Chancellor of the Exchequer, Kwasi Kwarteng announced his mini-budget outlining plans for a raft of tax cuts. Then over the past weekend he pledged further tax cuts in order to try and reinvigorate the UK’s stalling economy and attempt to counter the increasing inflation rates not seen in decades. His plans...
 GBP EUR Higher After Inflation Hits Another High 

Bank of England and mini budget – The impact on Sterling exchange rates

The Bank of England increased interest rates for the 7th time in a row by 0.5% to take the base rate up to 2.25%, which was the biggest single rate hike in years. This caused the Pound to fall briefly against both the Euro and US Dollar as there were some predictions that the Bank of England may have raised rates by as much as 0.75%. As this didn’t happen the Pound plunged almost immediately after the announcement but managed to reverse some of...
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...
GBP EUR Could Head Lower After Growth Revisions

Pound Sterling Forecast – The Week Ahead for Sterling Exchange Rates

First and foremost it has been a tough start to the week in terms of economic data, which has led to a drop-off against most majors. Growth figures for the month came out at 0.2% instead of the predicted 0.5%, Industrial and Manufacturing production figures also missed the mark, which again just adds more fuel to the fire that a long and challenging recession is fast approaching for the U.K. Our condolences to the Royal family after the terrible news that Her Majesty had passed on...
GBP to EUR Forecast: Will Sterling See Further Losses Against the Euro?

Sterling exchange rates continue to slide – How low can the pound go?

Sterling exchange rates have seen further losses against both Euro and Dollar over the course of the trading week, as investors and speculators alike have made it clear there is a lack of confidence in the Pound at present. With the cost of living crisis bearing down on the UK economy and a prolonged recession on the cards we have started to witness a move away from the pound and it appears that it is being treated much more like a riskier currency rather than...
GBPEUR Bounces on the Day with Limited Data Due

Pound to Euro outlook: Could GBP/EUR exchange rates rise back above 1.10?

Pound to Euro exchange rate: Euro weakness sees the Pound make a short-term bounce back The pound to euro exchange rate has been nudging the 10-year low on the interbank, having broken through the 1.07 mark on Friday, testing 1.064. this is the lowest level seen since January 2009, breaching the 1.0730 lows of August 2017. The euro has been weaker since Friday last week, following the news that the Germany economy is not growing as fast as hoped, with the recent economic growth figures...
GBP EUR Recovers from Early Losses on EU Trade

Pound to Euro exchange rate forecast: European data disappoints, Sterling makes minor gains as...

The pound to euro exchange rate has made minor gains with sterling moving against the majority of major currencies at the time of writing this post. UK data yesterday showed slightly better than expected employment and average earnings figures yesterday along with inflation being shown to have crept up above 2% in figures released this morning. Bank of England: Low GBP value causes UK inflation worry Mark Carney (Governor of the Bank of England) had to explain via a letter to the Government why inflation has...
Euro Stages Comeback Against the Pound at the End of This Week's Trading

Pound to Euro forecast: Will GBP/EUR rates test the 2019 interbank lows?

What is happening to the Pound to Euro exchange rate? The lowest point on pound to euro rates in 2019 was 1.1062 and we have been very close to this of late, with current interbank rates at 1.1093. The rate has also been in the low 1.11’s and there is increased uncertainty surrounding this lack of clarity. We know the pound has been weak because of the ongoing political uncertainty for the UK, GBP/EUR rates are not shaking off the Brexit woes easily. Investors await Conservative...
Pound to Euro forecast: When should I buy Euros?

Pound to Euro forecast: When should I buy Euros?

Sterling continues to struggle against the Euro: Key market events to look out for The pound over the last 8 weeks has struggled against the euro. Pound to euro exchange rates have dropped by 5%, to put this into monetary value a €250,000 purchase now costs an additional £11,450. This month there are a few key events to look out for which will have a major impact on the currency pairing. Brexit This month 160,000 Tory members will vote on who they want the next Prime Minister...