GBP exchange rates climb as focus turns to the Bank of England this week
The Bank of England is expected to increase the base rate of interest for the 12th consecutive time this Thursday, taking the base rate up to 4.5%.
An increase of 0.25% is expected, as the Bank of England continues its struggle to contain high inflation levels. Britain has the highest level of inflation within the G7 group of advanced economies and inflation remains above 10% despite the Bank of England targeting 2%.
Increasing interest rates often strengthen the underlying currency and this is a pattern we’ve...
Will pound sterling keep rising? Focus on Bank of England Thursday
Will the pound keep rising? To assess how the Bank of England meeting Thursday will affect the pound, we can look at the forecasts.
We researched data across 54 banks and just 9 think GBPEUR will be above current levels (1.1462) in the coming months.
The other 80% plus forecasters, indicated rates will be below 1.14. The research shows there might not be much headroom on GBPEUR levels.
The pound ended the first week of May well. Sterling hit the highest points of the year against the...
Fed signals pause in interest rate hikes – will the ECB help or hinder...
The US Federal reserve announced last night that they would be raising interest rates for the 10th consecutive time. The move raised US interest rates by 25 basis points up to 5.25%, the highest level since 2007.
In general, interest rate rises can lend support to the value of the currency, however, the US dollar lost ground across the board following the Fed’s announcement. The Fed indicated that future interest rate rises could be limited given the potential restraint on the economy. Markets have digested...
How will the pound react to the latest US, Eurozone and UK Interest Rate...
We have a potentially volatile few trading sessions coming up as investors gear themselves for the latest US, Eurozone and UK interest rate decisions. Markets remain slightly nervous over the banking liquidity fears which surfaced some weeks ago, it will be interesting to see the latest take on this and other issues from the central banks.
Our friends at the US Federal Reserve commence proceedings tonight where it is predicted they will be raising interest rates a quarter of a point. Banking stocks continue to...
Will Sterling’s strong end to April carry over into May?
Sterling exchange rates ended the month of April on a high after posting gains on Friday, with GBP/USD hitting the financial headlines as it traded near an 11-month high.
Despite GBP/USD softening slightly since Friday’s highs, the pair are currently trading roughly 1.5 cents from the annual high of 1.2667.
On Friday cable (GBP/USD) broke above 1.25 and climbed as high as 1.2580 at one stage. This move was mostly due to US Dollar weakness as the FED Reserve struggles to counter increasing inflation levels in...
Pound to Euro Rate Drops into the 1.12’s, hitting a 1-month low
Earlier in the month the GBP to EUR exchange rate was trading around the highest levels of 2023 so far, although since then, we’ve seen the Pound drop off and this morning the pair are trading in the 1.12’s.
The GBP/EUR pair climbed above 1.1450 at one stage, so in the space of just a few weeks there has been a gradual decline for the pair, despite the Pound climbing against some other major currency pairs.
Expectations of further interest rate hikes are now more likely...
UK inflation remains high – will the BoE give the pound a boost?
UK inflation remains high – will the BoE give the pound a boost?
Economic data released yesterday shows UK inflation (CPI) remains elevated above 10.1%. Forecasters were expecting inflation to fall to 9.8% following last month’s reading of 10.4%. The inflation reduction is positive for the UK and was largely driven by a fall in fuel and oil prices. However, food prices continue to rise as the UK consumer feels the squeeze of the continuing cost of living crisis.
Sterling exchange rates have remained relatively unchanged...
UK avoids recession – will the pound strengthen moving forward?
Pound Sterling has been range-bound against many of its major counterparts over the last two weeks. Most notably, GBPEUR which has traded within a cent from the high to low. Cable (GBPUSD) has traded within a 2-cent range and struggled to find support above the 1.25 handle.
The pound has strengthened in value due to the revised UK economic forecasts, however, it would seem the positivity has ended here for the pound and that new data will be needed to push the pound out of...
GBP exchange rates climb after positive comments from BoE Governor Bailey
GBP exchange rates have begun the day on the front foot after some positive comments from Bank of England Governor Andrew Bailey yesterday evening.
He stated that hiking interest rates again remain a tool at the Bank of England’s disposal to tackle rising inflation.
Last week it emerged that UK inflation levels surprisingly remain above 10%, when markets had forecast a fall below this threshold for the first time since August last year. This pushed GBP exchange rates higher as the chances of additional interest rate...
Will the Pound strengthen this week?
The Pound reached multi-week highs last week after Chancellor Jeremy Hunt did his best at calming the markets with his Spring Budget release on Wednesday.
The capturing headline that the UK will not enter a technical recession this year’, as well as expectation of growth in the years afterwards, boosted the Pound heading into what could also be a volatile week.
The Bank of England will announce the next steps forward in terms of interest rates on Thursday, as the Monetary Policy Committee meet. Catherine Mann,...
