Will the Bank of England stop hiking interest rates after next week’s expected hike,...
The Bank of England is expected to hike interest rates once again on the 21st of September, bringing the base rate of interest up to 5.5%. This would be a 15th consecutive interest rate hike from the central bank, with the rate currently sitting at a 15-year high.
Throughout the year the increasing rate hikes have helped push the Pound higher against most currency pairs, and the Pound was the strongest performing currency of the G10 in the first half of the year.
Expectations of further...
Will GBP exchange rates drop throughout the remainder of the year?
Sterling exchange rates have been in the headlines often throughout 2023 so far, as the currency was the strongest performing currency of the G10 in the first half of the year.
As the result of the gains made by the Pound, GBP/EUR is currently trading within 1-cent of its 52-week high making the conversion of Pounds into Euros an attractive proposition.
Although GBP/USD had a very strong first half of the year, the Pound has begun to gradually drift from its highs over the past few...
Sterling softer against the euro ahead of key inflation data
Sterling softer against the euro ahead of key inflation data
Pound sterling softened against the euro during yesterday’s session, reaching a low of 1.1610 on the interbank which was a two-week low for the pairing. Marginal gains for the euro represented a window of opportunity for euro sellers.
GBPEUR reached a new yearly-high last week but has since dropped back by more than a 1%.
Exchange rates continue to be driven by current and future interest rate policy. Market expectations are for the Bank of England to...
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,...
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...
Sterling on the front foot following UK inflation data
Sterling on the front foot following UK inflation data
Sterling is back on the front foot against the euro and dollar following yesterdays release of inflation data. The pound is trading within 0.5% of the 11-month for GBPEUR making it an opportune time for euro buyers. Cable rates (GBPUSD) have risen from the 6-week low seen on Monday and pairing is trading comfortably above the 1.27 handle at the time of writing.
Yesterday’s data confirmed core inflation remains sticky coming out at 6.9% vs expectations of...
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...
Will the Bank of England help or hinder pound sterling?
Today’s Bank of England interest rate decision could help or hinder pound sterling’s future value. It is almost certain that the Bank will raise interest rates for the 14th consecutive time at today’s meeting. A pause in rates would cause shock to the market and likely trigger wide-scale sell-off of the pound.
Current expectations are for a 25-basis point hike. However, there is a chance that the Bank opt for 50-basis points. This would mean back-to-back 50 basis point hikes causing a 1% raise in...
