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...
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...
Pound to Euro Rate Drops into the 1.12’s, hitting a 1-month low
Earlier in the month the GBP to EUR exchange rate was trading around the highest levels of 2023 so far, although since then, we’ve seen the Pound drop off and this morning the pair are trading in the 1.12’s.
The GBP/EUR pair climbed above 1.1450 at one stage, so in the space of just a few weeks there has been a gradual decline for the pair, despite the Pound climbing against some other major currency pairs.
Expectations of further interest rate hikes are now more likely...
Will the pound continue to rise against the US dollar and Euro?
Sterling has been performing much better lately after improvements in the UK's economic outlook combined with expectations that the Bank of England will be looking to raise interest rates sooner and potentially higher than previously expected.
Looking to the latest interest rate outlook, the Bank of England has been earmarked to raise interest rates in the future at some stage but this might well need to happen sooner than expected.
Overall, UK interest rates are not set to be raised until the next meeting in early...
Will the Pound continue to climb this week, and how could the BoE’s meeting...
The Pound climbed in the lead up the Spring Budget last week and following it, Sterling exchange rates continued to climb as markets seemed impressed by the rhetoric outlined by the Chancellor.
For the first time in just over 3-months, GBP/EUR broke above 1.1400 and managed to consolidate its position above that key threshold. The reason I believe that 1.1400 is a key threshold and the Pound managing to break above and consolidate above this level, is because it had previously been tested on three...
Will the Pound strengthen this week?
The Pound reached multi-week highs last week after Chancellor Jeremy Hunt did his best at calming the markets with his Spring Budget release on Wednesday.
The capturing headline that the UK will not enter a technical recession this year’, as well as expectation of growth in the years afterwards, boosted the Pound heading into what could also be a volatile week.
The Bank of England will announce the next steps forward in terms of interest rates on Thursday, as the Monetary Policy Committee meet. Catherine Mann,...
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...
Monetary policy meetings and interest rate hikes – Will the Pound weaken further this...
The week ahead will be a major one for the Pound, Euro and US Dollar will all three respective central banks announcing further developments in their battle to reduce inflation back to target levels, through their monetary policy meetings this week. Monetary policy meetings and decisions on interest rates help us to understand the current health of the economy, which is the main influence on a currency’s value and, any adverse movement away from the expectation within the market, may result in volatile movement.
The...
Sterling rallies after UK inflation stays high – Will the pound gain strength this...
The Pound rallied and saw some gains in the recent week finishing at 1.1423 against the Euro and 1.2392 against the Dollar. The pound strengthened after the UK labour market data on Tuesday displayed a new record high for UK wages showing the UK is nowhere near finished with high inflation thus putting pressure on the Bank of England (BoE) to raise the interest rate by 50 basis points.
This upswing in the Pound continued after Wednesday showing a smaller than expected decrease in inflation...
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...
