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...
GBP AUD Pauses After a Recent Bounce Higher 

Interest rate expectations could be the main driver behind GBP exchange rates in 2023

Towards the end of last week we saw some considerable volatility within the currency markets as data releases, mostly US based resulted in some big swings for a number of currency pairs. Sterling exchange rates, particularly cable (GBP/USD) saw price changes of over 1% towards the close of the trading day as the Dollar weakened across the board of major currency pairs. There has been more of a risk-on attitude within the markets owing to expectations that US interest rates may not be hiked much higher,...

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...

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...
GBPEUR Forecast – Internal Market Bill Drives GBP Lower

Sterling Hits Fresh Highs! Will the pound continue to rise this week?

The pound has reached fresh highs against both the Euro and the US dollar in the last week, as weeks of general malaise and negativity for the pound seem to evaporate. The key question for many will be, is this going to continue? GBPEUR levels have risen to three-week highs of 1.1582 in the last 24 hours, where we had seen a low of 1.1326 two weeks ago. The move on GBPUSD is more impressive, with the near 1.20 hit recently, the highest since August,...
GBP EUR Higher Despite Dip in Inflation Figures

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...
GBP EUR Soars Again After UK Employment Boost

How will the Autumn Statement influence the pound?

The Autumn Statement is scheduled for 17th November, and will see Jeremy Hunt, the Chancellor outline fiscal policy for the new Rishi Sunak administration. The pound can be very sensitive to changes in government policy on tax and spending, particularly given the UK's current precarious financial position. We might not expect quite the same fireworks as saw following the last fiscal event in September and early October, with Kwasi Kwarteng and Liz Truss, but that episode highlights the potential volatility we can see from changes...

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...
GBP AUD Slumps After UK Cabinet Resignations 

Pound Sterling rises as Sunak expected to be third Prime Minister in a matter...

The pound has started off the week on the front foot against all major currencies, following another weekend of political twists and turns for the UK. As we headed towards the end of an eventful week, news broke that ex Prime Minister Boris Johnson was heading back from a Caribbean holiday to have a crack at  regaining his position at number 10, something that seemed a million miles away only a few weeks ago. As most readers will know, the UK is full of surprises at...