Will Sterling continue to recover following last week’s dramatic sell-off?
Yesterday the Pound begun the week in a strong fashion, following on from its recovery towards the end of last week.
During last week’s trading session the Pound traded within an 8% range against the US Dollar and the trading range for GBP/EUR wasn’t far from this kind of dramatic trading range either. I would say that it was the most volatile week of trading since the Brexit vote took place back in June of 2016.
The Pound begun to fall in value in the fall-out...
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...
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...
Sterling’s rise continues against the euro and the dollar
Sterling's Rise
Sterling is continuing to rise against the euro and the dollar. Sterling had entered the year on a negative footing due to forecasts suggesting the UK would face a deep and lengthy recession in 2023.
The recent economic data has directly contradicted the earlier forecasts. Yesterday, UK GDP posted a positive reading of 0.2%, showing that the UK economy grew month-on-month, contributing to sterling's rise.
The Bank of England and IMF have now revised their economic forecasts for the UK and are both predicting growth...
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...
Will the Bank of England cause the pound to rise or fall tomorrow?
This Thursday is the latest UK Bank of England Interest Rate decision, where there is a prediction for interest rates to be raised to 4% from their current 3.5% level. There is a high expectation this will be the case, with the news effectively priced in according to some commentary in the press.
Typically speaking, a higher interest rate will lead to a stronger pound since a higher interest rate generally makes a currency more attractive to hold by investors. In a similar fashion to...
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...
Pound jumps on expectations that Liz Truss will announce huge economic plan – Sterling...
The pound has struggled to find many positive days in recent weeks, however, over the course of this morning we have seen sterling exchange rates creep up against all major currencies.
The majority of this can be put down to a minor shift in sentiment and that investors and speculators alike appear to have some confidence behind the expected economic plans being muted by new Prime Minister Liz Truss.
Expectations are for an economic package of £130 Billion to be announced in due course which would...
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...
UK Inflation Rises Once Again ! Will the Pound Rise or Fall on the...
UK Inflation has risen to 11.1%, which is a 41 - year high. The pound is weaker against many currencies on this news, as the damage of rising prices to the economy is considered.
Inflation has been a real problem for not just the UK, but also the global economy as central banks are forced to raise and adjust interest rates to combat the rise in prices of goods and services in the respective economies.
Sterling might typically be stronger on the back of expectations that...