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...
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...
Is the pound set to weaken?
Sterling exchange rates hang in the balance
Sterling exchange rates once again hang in the balance following a subdued start to the week. Yesterday, the pound recovered most of the gains lost during Tuesdays session, however, struggled to break much higher.
Data released on Monday triggered the sterling sell-off after the pound had risen to monthly highs against the dollar and the euro towards the end of last week. PMI data confirmed the UK services industry contracted last month, which is negative for the country’s economic...
Will The Pound Keep Rising This Week?
The Pound has had a fairly good week or two against most major currencies, so I thought I would look at the probability that Sterling exchange rates would continue to gain ground against them over the course of this week.
Now that the Autumn statement has passed without any huge drama, unlike Kwasi Kwarteng's attempt, there is a feeling that there is a little more confidence in the U.K and investors are starting to head back into UK stocks and shares, thus heightening demand for...
Important week for Sterling exchange rates with economic data and the Autumn statement due...
We have a really important week ahead for Sterling exchange rates, with a number of key economic data releases due over the course of the trading week, and the delayed Autumn Statement to be delivered on Thursday.
There are still concerns over the outlook for the U.K economy, so economic data is being watched closely by investors, and we have some key releases over the next few days which could cause the pound to be particularly volatile.
Tomorrow morning we have unemployment data, expectations are for...
Will the pound weaken again?
Sterling exchange rates hang in the balance once again following a day of poor performance in yesterdays session. The pound dropped close to monthly lows against euro while also losing value against the US dollar and a basket of other currencies. Sterling has opened this morning on a more positive footing.
The announcement that cryptocurrency giant Binance would not rescue their competitor FTX triggered a significant sell-off in the crypto markets. A number of asset funds are invested in the crypto sphere meaning a sell-off...
Strong start to the week for Pound Sterling – What could this week bring...
We have seen a strong start to the trading week for the Pound against every major currency, as Sterling exchange rates have bounced back from losses towards the end of last week.
The Pound did drop off at the back end of the week due to a fairly dovish tone set out by the Bank of England at the BOE interest rate decision, where the markets were informed not to expect as greater hike in interest rates in the coming months as had been originally...
Sterling remains stable after ECB interest rate hike
The European Central Bank (ECB) confirmed yesterday that interest rates in the eurozone would be raised by 75-basis points. Euro sellers would have been hoping for a bounce in rates following the decision, but the single currency softened against a number of major currencies.
It is likely that a 75-basis point hike was already priced into the rates with the figure well reported a couple of weeks ahead of time.
The decision proved positive for GBPEUR, with the pound pushing close to monthly highs. Bar the...
