The Struggle Continues for Sterling
Will we see pound sterling exchange rates continue to fall?
The pound has traded more weakly in recent weeks as evidence of a slowdown in the UK economy persists.
The Bank of England has also indicated it is now most likely finished raising interest rates. Higher interest rates are in general a reason for currency strength.
Signs of a lower interest rate are therefore typically likely to lead to currency weakness.
In the last 24 hours, the Bank of England chief economist Huw Pill, has stated interest rate...
Pound Sterling Forecast – Will the Pound Continue to Weaken?
Why the pound could have further to fall?
The pound has been lower as we approach the end of September, following the Bank of England decision last week.
We did write about this decision highlighting it as a risk event here. The pause by the Bank of England has seen sterling lower as interest rates are a key driver in the currency markets.
With the prospect of a further interest rate hike for the UK being largely removed for now, the pound is weaker as investors feel...
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...
Will the Pound Fall Further on Bank of England Decision and Falling Inflation?
Sterling lower after UK Inflation drops more than expected to 6.7%
The pound has dropped across the board today after UK Inflation data came in lower than expected. This is good news in one sense as the Bank of England has been trying to bring this down for many months.
Sterling has been supported by expectations of a higher interest rate in the future, with a key meeting tomorrow.
UK interest rates are much higher in the last year than in recent years, this will typically see...
Further Sterling exchange rate volatility expected in another week packed with economic data releases
Last week saw a turbulent week of trading, with GBP-EUR rates dipping to a 1 month low. The low was however short lived, and Sterling managed to claw back some strength back to 1.1660, as the European Central Bank indicated that Interest Rates have peaked.
The European Central Bank raised interest rates by 25 basis points on Thursday, to 4% - a record high by the European Central Bank (ECB). This was the bank’s 10th raise in a row. This was seen as a doveish...
Pound Sterling Forecast: How to get the Best Pound to Euro Exchange Rate
Pound Sterling Forecast, what we can expect for the pound?
Getting the best pound to euro rate is about being prepared and tracking key economic data and information.
"Hope", is not usually a good strategy. Relying purely on "luck" and hoping that the market will magically go your way can often lead to disappointment.
Just because you cannot totally predict the direction on rates, doesn't mean you should just give up and accept your fate.
To help my clients get the best rates, I take the time to...
Sterling dips against stronger US Dollar in data heavy week
How will the pound finish August and perform in September?
As we often find, following a bank holiday, there is a lot to compress into the final days of the week.
That is certainly the case this week in the FX markets, we have a heavy economic calendar.
We have some key pieces of economic data to influence September’s interest rate decisions.
The FED, ECB and Bank of England all meet in the final weeks of September, and the FX markets will be looking at the current data...
The pound rises but this is not necessarily because of sterling strength !
Pound Sterling Forecast remains Mixed
Yesterday saw a raft of good news pieces which helped to bolster the pound. Yesterday the IMF upgraded its global growth forecasts 2.8% to 3.0%.
This has benefited sterling as typically the UK does well when the global outlook is more positive.
The IMF expects the UK economy to grow by 0.4pc this year, this is a big upgrade compared with the 0.3pc contraction it predicted in April.
As well as the IMF upgrade, EY has upgraded its UK economic growth forecast for...
GBPEUR hits 11-month highs ! Will the pound keep rising ?
The pound has been rising but can this continue
Expectations for the pound to carry on rising remain fairly high in the FX markets as sterling has continued to touch fresh highs.
Against the Euro we have been comfortably in the 1.17s, and against the US Dollar 1.29. GBPEUR levels are an 11-month high and GBPUSD levels are testing 16-month highs.
The outlook for sterling has increased and improved as investors back further interest rate hikes in the future.
Typically the raising of an interest rate sees the...
Will the pound rise back against the Euro?
Pound Euro levels dip as Euro Strengthens !
The pound sterling to Euro rate fell yesterday as interest rate expectations for the Eurozone increased.
Christine Lagarde, indicated yesterday that stubborn inflation was likely to see the Eurozone continue to raise interest rates ahead.
We have written many times before about how a higher interest rate leads to a stronger currency.
The pound has hit 1.17 and higher in recent weeks mainly because of higher interest rate expectations for the UK.
But, the main trigger for this, high inflation, is...