GBP USD Slips Lower After Powell Secures Second Term as Fed Chair

GBP EUR Drops as Bank of England Holds Rates Steady

The GBP EUR exchange rate was lower -0.40% after the Bank of England declined to raise interest rates, crushing traders in the process. I said in previous articles that the BoE may use the market repricing as a soft hike and that’s exactly what they did. The Federal Reserve also took a dovish path last night so that was another warning sign. The GBP to EUR was trading at 1.1740 on Thursday’s announcement. Bank of England defies market with interest rate flip-flop The Bank of England has...
GBP EUR Higher Despite Dip in Inflation Figures

GBP EUR Higher Despite Dip in Inflation Figures

The GBP EUR exchange rate was 0.10% higher on Wednesday after the latest inflation figures came in less than expected. Despite the cooling, prices are still above 3% and are likely to draw central bank rate hike action. There was also a warning of record petrol prices at the pumps ‘within days’ and that will fuel the inflationary fears further. The GBP to EUR trades at 1.1865 as it continues to probe new yearly highs. UK inflation falls unexpectedly in September The GBP EUR was higher despite...
GBP AUD Sinks After Bank of England Joins Dovish Path

GBP EUR Dumps Over 1% on Energy Crisis

The GBP EUR exchange rate surged to 1.1715 after the Bank of England governor Andrew Bailey said that inflation had “strengthened the case” for a rate rise. A surge in UK gas prices to record levels and a run on fuel station forecourts by panicked consumers are pointing to a combination of weakening growth and rising inflation. Germany also released better-than-expected consumer confidence figures raising hopes for a recovery in Europe’s largest economy. The GBP to EUR started the day above 1.1700 but dropped below the...
GBP EUR Lower After Retail Sales Disappoint

GBP EUR Exchange Rate: Week in Review September 18th

The GBP to EUR exchange was higher again this week after the UK showed a strong employment report early in the week. That was followed by inflation that topped analysts’ expectations. Goldman Sachs were the first investment bank to bring forward their Bank of England rate hike projection on the latest data. The GBP v EUR was trying to hold gains above the 1.1700 level despite the latest data. Goldman Sachs sees Bank of England hike in May 2022 The investment bank Goldman Sachs gave the pound...
GBP AUD Sinks After Bank of England Joins Dovish Path

GBP EUR Higher as Inflation Beats Expectations

The GBP EUR exchange rate was 0.20% higher on Wednesday after the UK saw its highest inflation since 1997. The figures were affected by the ‘Eat Out to Help Out’ scheme from a year ago but alarm bells are ringing over the rise in the cost of living. The GBP to EUR trades at 1.1715 after a strong bounce from around 1.1620. UK inflation at highest level since 1997 The Office for National Statistics (ONS) has said that the cost of living in the UK has increased...
BoE Cause Pound to Euro to Rise but Future Remains Uncertain

BoE Cause Pound to Euro to Rise but Future Remains Uncertain

The pound to euro exchange rate rose more than one cent last Tuesday when Bank of England Governor Andrew Bailey said the bank would not be looking at zero or negative interest rates in the short-term. Instead, his tone was quite dismissive, suggesting that whilst zero or negative interest rates are an option, there are other options, more notably quantitative easing. However, whilst the immediate threat of a rate cut has disappeared and provided the pound to euro exchange rate with support, there is still...
Pound to Dollar Rate Drops to One-month Low

Pound to Euro Exchange Rate Outlook: Will GBPEUR go higher this week?

Pound to euro interbank exchange rates finished last week at their highest point since December 13th, reaching a 2-month high of over 1.20. This welcome news for euro buyers but further unease for euro sellers, who have seen the pound making steady gains since the August 2019 lows of 1.0647. Sterling rose in part due to the belief the new Chancellor Rishi Sunak will be more liberal with his spending plans, and the resultant boost to the economy makes an interest rate hike more...
Pound to Euro Forecast What Factors Influenced GBP/EUR Rates This Week?

Pound to Euro Forecast: What Factors Influenced GBP/EUR Rates This Week?

This week saw pound to euro exchange rates experience some volatility as attention increased around the likelihood of the Bank of England looking to cut interest rates in the future. Sterling lost ground in early trading this week as investors concerns over the economy were heightened after Monday’s news that the UK economy contracted by 0.3% in November. By Thursday afternoon the initial fears were being more carefully assessed, as a more balanced view considered the fact November was a time of increased political uncertainty,...
GBP EUR Slumps Despite UK Rates Lift-Off

Sterling Euro Forecast: Brexit Talks and Upcoming GBP Economic Data to Influence GBP/EUR Exchange...

In this piece we look we look at what has happened in the mega-saga of the Brexit deal this week, and what to look out for in the coming week. The UK met with the President of the EU Commission earlier in the week to set their Brexit talks underway. Both parties appeared positive about the talks and looked keen to get to work and resolve a trade deal. Both currencies did little to shift despite the positive beginning to the talks and encouragement...
GBPEUR Cautious Ahead of BoE, Scottish Election

Pound Sterling Forecast: Will the Bank of England Cut Interest Rates and What Could...

The pound vs euro exchange rate has remained in a fairly tight range during the course of last week. Now at the end of the first full week of the year it is likely that the markets will once again focus on what is happening in the economy. What could impact Pound Sterling Exchange Rates? We begin next week with the release of a number of different data sets due out on Monday morning. Monday brings with it the latest Industrial and Manufacturing Production data as...