This week ahead – Are 2023’s Sterling high’s set to continue?
For the first time in 2023, we saw the Pound breach the 1.16 ceiling against the euro last week. On the 1st of June 2023 we saw a new a 2023 high reached for GBPEUR of 1.1667 with sterling managing to maintain a mid-market level of above 1.16 for the remainder of the week. The Pound saw similar rises against several currencies, most notably the Australian and New Zealand Dollar, respectively climbing to both 2- and 3-year highs.
Analysts have raised their bets on further...
Sterling hits two-month highs – how will today’s ECB decision impact rates?
Sterling had one of its most positive sessions of the year against the euro during yesterday’s trading. The pound hit two-month highs against the single currency following positive comments from Chancellor of the Exchequer Jeremy Hunt.
Hunt was in parliament to deliver the UK budget (Government Fiscal Plan) for 2023 and announced that the UK would avoid a recession in 2023. Hunt’s comments will not come as a surprise for many market analysts after a recent stream of positive or less than negative economic data...
Sterling improves following NIESR report – where will the pound go next?
Sterling improves following NIESR report – where will the pound go next?
The pound enjoyed a more positive session yesterday following the release of the NIESR’s (National Institute of economic and social research) economic forecast for the UK in 2023. Their research contradicts the predictions that have come from the Bank of England for a lengthy recession and forecasts that the UK will avoid a technical recession in 2023.
Sterling was buoyed by the news which moved GBPEUR to a 7-day high, raising the rate from...
Sterling loses positive gains – will the pound continue to weaken?
Sterling loses positive gains – will the pound continue to weaken?
Sterling exchange rates plummeted during yesterday’s trading session as negative sentiment surrounding the UK’s economy continues to weigh on the currency. Less than 24 hours prior, the pound was trading at 4-week highs against the single currency.
The pound had been boosted by the announcement that the UK and EU had reached a deal over trading arrangements in Northern Ireland known as the Windsor framework. Since the Brexit vote in 2016 the pound has lost...
Will the Pound fall if the UK enters a recession?
At the time of writing the Pound is trading towards the top end of its 2023 ranges against most major currency pairs.
Last week, the Bank of England opted to hike interest rates by 0.5% which came as a surprise to financial markets, after a hike of 0.25% was expected.
Sterling exchange rates were quite volatile in the aftermath of the decision to raise rates by 0.5%, and GBP/EUR peaked just below 1.1750 which is the highest level the pair have reached so far in 2023,...
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...
Pound at its lowest against the Euro in 19 months, and 37 years against...
The pound is notably weaker today following the release of the latest UK Retail Sales numbers showing a surprise fall of 1.6%, which makes the economic slowdown anticipated, and likely recession ahead seem much worse than thought for Britain.
As I write, GBPEUR levels have dropped to a 19-month low, with the day low at the time of writing 1.1399 on GBPEUR and 1.1350 on GBPUSD. The cable level is a 37-year low, the worst for sterling since 1985 against the US dollar. I am...
Three Key Events in a Vital 72 hours for GBPEUR and GBPUSD Exchange Rates
The beginning of this week in the UK was very sombre with Her Majesty’s funeral and a UK Bank Holiday. This meant UK markets were shut, and ensured a fairly sleepy start to the week from a currency perspective, with sterling still nestling in the doldrums following the poor Retail Sales data from last week.
The rest of this week looks far from calm however, with three key events that could trigger market movements for the pound, US dollar, Euro and many other currencies. The...
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...
Will the pound continue to fall? Sterling exchange rates hit multi-month lows
Sterling finished the trading week on the back foot, closing out at 1.1480 against the Euro a four-month low since 15th May.
Unfortunately, against the dollar it was a similar story with the week closing out at 1.2235 against the Dollar a six-month low dating back to the 27th March.
The main reason for Sterling’s demise is the uncertain UK outlook from the financial markets, largely due to the economic data prints in the week.
Primarily lower than expected inflation print on Wednesday changed the outlook of...
