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Forecast for the Week

GBP exchange rates remain flat despite concerning economic data released this morning

Government debt within the UK has reached its highest December figure on record according to figures released this morning. The currency markets have barely been impacted though, as these figures were expected, but it is a concern for the UK economy moving forward and could weigh on the Pounds value. The government’s decision to support households and businesses with rising energy bills, along with increasing interest rates increasing the debt burden on national debt has pushed UK government borrowing to a record December high of...

Could UK Inflation Data Influence GBP Exchange Rates This Week?

The Pound begun the week in an uneventful fashion after trading within thin ranges throughout Monday’s trading session. The Pound to Euro exchange rate remains quite rangebound at the moment, mostly trading between 1.1250 to 1.1300 with no signs of a breakout from this range at the moment. This morning is a good example of this trading pattern, with the pair hitting exactly 1.1250 before rising slightly. Jobs data released this morning has done little to influence GBP exchange rates although perhaps tomorrows inflation data could...

Will the pound get stronger? Growth figures show a surprise positive reading on Friday

The UK looks set to avoid a recession in 2022 as GDP data was announced on Friday. The UK economy grew by 0.1% in November, with the services sector providing a welcome boost when a 0.2% expansion was announced. This came as a surprise to many forecasters, with a 0.3% GDP contraction the market expectation. Despite this, the pound failed to make any significant gains against the Euro, finishing the week trading at 1.1280 – a near 0.75% decrease since markets opened on Monday. The Pound...
GBPEUR Sees a Sharp Rebound with ECB Stimulus Plans

Pound hits lowest rate since ‘mini-budget’

Yesterday saw the pound weaken further against the euro, falling to the lowest GBPEUR rate since the now infamous Liz Truss/Kwasi Kwarteng ‘mini-budget’. GBPEUR was trading at 1.1257 during the low of yesterday’s session. The downward pressure on the pound begun a month ago now following the European Central Banks (ECB) decision to hike interest rates by 50 basis-points. The pound has lost 3.5% against the euro in the last 4 weeks. A transfer of £100,000 is currently buying €4100 less vs a month ago. In...

Sterling exchange rates against Euro and Dollar this week

As we entered the new year, sterling ended a turbulent week on the up against both the euro and the dollar after a wave of data across the continent and the pond was released. The pound finished the week over 0.5 cents higher (1.1360) than where it started (1.1290) against the euro and at similar levels to where it started (1.2060) against the dollar. The pound managed to recover over 2 cents alone against the greenback on Friday after early week losses. The cause for...

What will 2023 Bring For Sterling Exchange Rates?

Sterling exchange rates have dropped on the whole throughout 2022 and it is fair to say there are a number of quite obvious reasons behind the poor performance of the pound over the course of the year. Here is a summary of GBP paired against a selection of major currencies and the movement since 1st Jan 2022 as an example. GBP/USD -10.79% GBP/EUR -4.97% GBP/CAD -5.44% GBP/AUD -4.69% GBP/CHF -9.97% All in all, the above suggests the pound indeed had a torrid time of it, most notably shortly after Liz Truss...
GBP AUD Dips Again Ahead of BoE Rate Decision

Could this week’s busy schedule push GBP exchange rates out of their comfort zone?

Sterling exchange rates have been gradually climbing against the majority of major currency pairs in recent weeks. The change in government leadership, and financial planning in September has helped this cause and resulted in a steadier Pound. To put this into perspective, the rate for cable (GBP to USD) is currently trading close to it’s 6-month high after recovering from the lowest levels on record in late August and early September. Additionally, the GBP to EUR exchange rate is trading towards the highest levels in 3-months...

Red hot week for economic data, as temperatures across the UK plummet

Things have been looking brighter for the pound in recent weeks and the pound finished last week strong, after suffering a near two and a half cent (1.2345 to 1.2106) slide against the greenback (GBP/USD) from Monday to Wednesday. The pound has benefited from an improved ‘risk on’ appetite in recent weeks and responds well to positive news. Cable finished the trading week on the 1.23 handle. The positive news in question relates to recent comments from US Federal reserve chair Jerome Powell’s comments around...

Bank of England and UK Unemployment-Will Sterling rise against the Euro & US Dollar?

Bank of England due to hike interest rates but by how much? With the Bank of England already having hiked interest rates many times during 2022 there is a strong likelihood of another interest rate hike coming next week. The Bank of England are likely to announce an interest rate hike on Thursday 15th December. This would involve raising the base rate to 3.5% from the current level of 3%. The UK inflation rate has recently hit a 41 year high and currently inflation sees little signs...

Will Sterling continue to rally after hitting annual lows just a few months ago?

Sterling exchange rates have rallied in a dramatic fashion after hitting both annual, and record lows in some cases, as recently as just 3-months ago. During late August and early September, the Pound was in the headlines for all the wrong reasons when the disastrous and poorly planned mini-budget was announced. In the wake of the Chancellor at the times updates, the Pound fell to its lowest levels against the US Dollar on record and also stuck annual lows against the majority of major currency...