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...
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 hits record low against the US Dollar, and drops significantly against the Euro
Yesterday was a very difficult day for the Pound as financial markets appear to have lost faith in both the Bank of England’s monetary policy and the new cabinet’s mini budget.
Last Thursday the new Chancellor of the Exchequer, Kwasi Kwarteng announced his mini-budget outlining plans for a raft of tax cuts. Then over the past weekend he pledged further tax cuts in order to try and reinvigorate the UK’s stalling economy and attempt to counter the increasing inflation rates not seen in decades.
His plans...
Pound Sterling Forecast – Will GBP fall further next week?
Last week wasn’t the best week for the pound with sterling finishing lower against pretty much all the majors. GBPUSD interbank rates started last week at 1.2430 before slipping to 1.2114 Friday, and GBPEUR began the week at 1.1454 before slipping to 1.1193 on the interbank rate by the end of the week.
Two of the key reasons were the struggling of the Brexit talks with the UK openly attacking the EU’s approach, and also poor UK economic growth figures showing the UK is likely...
Pound Sterling Forecast – Will GBP rise or fall in June?
The pound weakened in May as the continued uncertainty over the economic effects of the Coronavirus weighed on the UK both politically and economically. The outlook for the UK has been tainted by the Coronavirus with the UK slightly behind the curve of many other countries who are gently opening borders and allowing freer movement of people and business.
The UK Government has spent billions on a furlough scheme which whilst providing some temporary relief is also perhaps just papering over some significant cracks in...
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...
Pound Sterling Down Against the Euro and US Dollar as BoE Interest Rate Decision...
Since the 23rd March the UK has been in lockdown which has seen big falls for the stock market owing to the uncertainty of when the UK will be ‘getting back to work'. Pound sterling has however, during this time managed to improve against a number of different currencies including vs the euro and the US dollar.
Sterling exchange rates prior to the lockdown suffered particularly vs the US dollar as the pound fell to its lowest level to buy US dollars since 1985. Indeed,...
Pound Sterling Forecast – Where Next for Sterling?
The pound has begun this week in mixed fashion, trading neither particularly higher or lower on the speech delivered by Boris Johnson over the weekend speech which spelled out the path ahead in easing the lockdown restrictions. The currency market has proceeded rather cautiously as so far as we have very little change in the current circumstances and there is still the possibility of a second wave of infections.
And it was possibility of a second wave of infections which saw sterling losing ground at...
Pound to Euro Exchange Rate – Further Losses Ahead?
Sterling exchange rates have lost a little ground against most major currencies over the course of the trading week, most notably hitting a 5 week low against the Dollar during yesterday’s afternoon trading session.
It seems that global sentiment is starting to slip again, and fears of a second wave of COVID-19 along with a major global recession are leading investors to batten down the hatches and take cover which is leading to some Sterling weakness.
For those that were following Sterling exchange rates...
Pound to Australian Dollar Rate Back Below 2 but for How Long?
The pound had hit recent highs earlier this week vs the Australian dollar as the global economy was feeling the strain of the global virus pandemic.
As a commodity based currency the Australian dollar can often come under huge pressure when the world economy starts to slow down and this happening at the moment. The pound briefly hit a high of 2.08 towards the end of the week before falling to just above 2. It then started to fall once again at the end...
