Euro Trades Below $1.08, Triggering Options Markets to Flash Warnings

Important day for GBP/EUR exchange rates – U.K Unemployment and European growth figures the...

Today will be important for GBP/EUR exchange rates as we have the release of some key data for both the U.K and Europe which will no doubt have an impact on GBP/EUR exchange rates. First and foremost we haver U.K unemployment and average earnings figures which will be focussed on by investors, speculators and the Bank of England as economic data at present is extremely important for where we may head next with interest rates. A drop off in economic data for the U.K has recently...
GBP EUR Rallies After ECB Reduces Pandemic Support

Will GBPEUR exchange rates rise or fall by the end of the week?

With GBPEUR exchange reaches back above 1.14, it seems like a good time for euro buyer to take advantage as I expect the pound could come under pressure on Thursday when the Bank of England announce their latest interest rate decision. The chances of a rate hike have dropped to 20% from 80% according to Lloyds and the reason for the fall is that UK economic data released last month disappointed. Retail sales, inflation and GDP all dropped significantly and recent Brexit developments are also...
GBP EUR Awaits PMI British and European PMI Data

Sterling Weaker Ahead of Local Elections

UK Prime Minister Theresa May held her Brexit cabinet meeting yesterday afternoon which could offer further direction for the Brexit negotiations and hence the pound. The issue of the day is whether Britain should remain part of the customs union with the EU. Brexit negotiator Oliver Robbins is trying to steer the government towards a customs partnership that would keep some of the benefits of the single market although members of the cabinet are unlikely to vote in favour of this option. Overnight there has...
GBP EUR Trades Above 1.18 After Weak ZEW Data

GBP/EUR stuck at pivotal point of 1.15 – Will rates break above or...

Sterling is currently sat around the 1.15 mark against the Euro and appears to be fairly range bound as we head towards the end of the trading week. Yesterday saw the most volatility for the pairing that we have seen this week following the European Central Bank interest rate decision and press conference, this led to a little Euro weakness and Sterling moving back up through 1.15. This rise was short lived however, as profit taking knocked the pound back below 1.15 and now we...
GBPEUR Awaits ECB, UK Prepares City Finance Review

GBP/EUR hits 1.15

Draghi hints at prolonged QE Today at the European Central Bank (ECB) monetary policy meeting Mario Draghi the head of the ECB has indicated that Quantitative Easing (QE) could well continue into 2019 despite earlier hints that it would be ending this year. QE is pumping money into an economy in order to stimulate growth, current monthly increments are €30bn, if there was to be a cut you would expect the Euro to strengthen significantly. News that  QE could continue has caused GBP/EUR to move...

What will happen at the ECB meeting today?

The European Central Bank will be meeting later on today to discuss their latest plans for monetary policy. The current QE programme remains at €30bn per month and at the moment the expectation is that this will end towards the end of this year. I don't think we'll see any change to policy this month so all eyes will be focused on the tone of the press conference and whether ECB president Mario Draghi will suggest that any changes may be coming. Draghi has previously made...

GDP to influence exchange rates this week

The recent positive run for GBPEUR exchange rates came to an end last week, when UK inflation feel sharply and Governor of the Bank of England Mark Carney couldn't confirm the prospects of an interest rate hike in May. Sterling fell from the 1.16s to the 1.14s causing concern for euro buyers. Any further commentary from the Bank of England over the next couple of weeks before the decision will have the potential to cause further fluctuations. Other UK economic data in the form of...
GBP EUR Higher as Inflation Beats Expectations

GBPEUR plummets due to Mark Carney

Late last night Governor of the Bank of England Mark Carney told the BBC that an interest rate hike would occur this year but failed to announce that it would happen at the May meeting. He did state Brexit negotiations and the performance of the UK economy will dictate when the hike occurs. This was seen as extremely dovish by investors and the pound was sold off. The Governor also spoke about inflation and said as always inflation needs to be monitored closely. With inflation...

Drop in Inflation decreases probability of BOE Rate hike (Daniel Johnson)

Is a rate hike in May by the BOE still likely? Yesterday we saw the release of Consumer Price Index (CPI) data. CPI is a key measure of inflation and there was a fall to 2.5%. In order to have a healthy economy it is important that average wage growth be close to parity with inflation and this is currently the case, with average wage growth (2.8%) currently sitting above inflation. Although this could be seen as very positive, could it be considered a danger...
Pound to Euro Forecast - Leadership Contest Drives GBP/EUR Rate Lower

GBP EUR Moves Higher Towards 1.16

The pound continues to maintain the higher ground against the Euro with rates pushing towards 1.16 for the GBP EUR pair. There is currently an excellent opportunity for buying Euros and those looking to secure may be wise to take the risk out of the market place. So far this year when there has been a surge higher for the GBP EUR it has only lasted for a brief period before falling lower. The outlook does appear to be brighter at present with rates for...