Pound Sterling Forecast – Sterling starts the week on the front foot

Sterling exchange rates have started the week off fairly positively against most major currencies, most notably continuing the strong finish to last week against the Euro, with GBP/EUR now sat above 1.1650. The reason this pairing in particular has moved in Sterling's favour more than others is down to the ECB (European Central Bank) interest rate decision and press conference delivered by Christine Lagarde on Thursday. The ECB did raise interest rates as expected, however there was a slightly dovish tone around this hike, there were...

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...
GBP AUD Consolidates with UK Employment Due

GBP exchange rates climb despite warnings regarding the UK economy

The Pound begun the week in a volatile fashion yesterday, and traded in over a 1-cent range against the Euro after testing the 1.1650 handle once again. We have now seen the GBP/EUR exchange rate test trading levels around 1.1650 at least 4-times in the last 3 months with yesterday being the latest example of this pattern. Yesterday morning during the earlier hours of trading GBP rebounded from the 1.1650 once again demonstrating that there is resistance at this level, so if you’re planning on...

Pound rebounds following lighter than expected inflation figures

Wednesday’s trading session saw the pound on the front foot, gaining back some of the losses from the past week against a basket of currencies. Inflation data released in the morning showed price growth slowed in July for the first time since September 2021. Could this be a signal that the cost-of-living crisis has begun to ease in the UK? The Bank of England stated last month that they expect inflation to peak at 13%. The drop in price growth does pose an interesting question...
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...
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...
GBP USD Exchange Rate Drops to Fresh Low as Truss Becomes New PM

GBP USD Exchange Rate Drops to Fresh Low as Truss Becomes New PM

The pound slid as low as 1.144 against the dollar on Monday – its lowest level since March 2020 – ahead of the announcement of the new Prime Minister. When, as widely expected, it was confirmed that Liz Truss had beaten Rishi Sunak in the race to 10 Downing Street, the UK currency managed to claw its way back into the 1.15 range. Truss has promised tax cuts and a new energy plan within the week, which could present the Bank of England with the conditions...
GBP to CAD Rate: Sterling Gains Against the Canadian Dollar Ahead of Bank of Canada Statement

When is the best time to buy Canadian dollars?

The pound to Canadian dollar exchange rate had been improving at a rapid pace, improving in 2018 by over 14 cents presenting some of the best rates to buy Canadian dollars since the Referendum. The overall expectations for the pound are to see further improvements as we get further clarification on the Brexit and also interest rates. The Canadian dollar has been strengthening owing to the rising price of oil which has seen the Canadian dollar strengthen owing to oil being one of its major exports. The...

Fed hikes interest rate by 75 basis points with key BoE meeting looming

Yesterday evening the US federal reserve raised interest rates by 75 basis points. Raising the policy rate from 2.5% to 3.25%. This is the third 75 basis point hike in as many meetings by the Fed, highlighting again their intention to take a strong stance on inflation levels that have spiralled out of control. "The committee is strongly committed to returning inflation to its 2% objective," the Fed said in a statement. Markets now expect US interest rates to finish the year above 4%. For...
GBP EUR Rallies After Bank of England Rise in Interest Rates

Pound weakens as markets wait for key central bank meetings

Pound weakens as markets wait for key central bank meetings Sterling closed yesterday’s session softer across the board as markets eye the eagerly anticipated Bank of England and European Central Bank interest rate decisions. Last night, the Federal Reserve in the US announced they would raise interest rates by 25-basis points to 4.75%. The announcement was followed by a statement by the Fed chair Jerome Powell who suggested their current rate hike cycle was coming to an end. The Fed believe the deflation process has...