GBPEUR UK election: Why haven't pound to Euro exchange rates fallen?

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...

Why Are Sterling Exchange Rates So Low? Why Is The Pound Dropping?

Sterling exchange rates have taken another huge hit overnight as the trend of weakness for the pound continued straight at the start of the open on the Asian markets last night. The Pound dipped all the way down to the 1.02s against the Dollar and the 1.07s against Euro as investors and speculators rushed to drop the currency and this caused a great deal of weakness. So why are Sterling exchange rates dropping? Since the announcement of the mini-budget and Kwasi Kwarteng's plans to cut taxes we...

Pound Sterling Weakness – Why Is The Pound Dropping So Much?

Sterling exchange rates have taken a huge hit over the course of the days trading, as the new chancellor Kwasi Kwateng's mini-budget appears to have knocked the pound totally out of fashion. The pound has lost over 350bps against the Dollar sitting in the 1.08 territory, whilst dropping to 1.12 against the Euro and hitting the lowest level against the Swiss Franc since 1974 sitting in the 1.06s. There is now talk of an intervention and whether HMT will make an attempt late on Sunday night...

Fed hikes interest rate by 75 basis points with key BoE meeting looming

Yesterday evening the US federal reserve raised interest rates by 75 basis points. Raising the policy rate from 2.5% to 3.25%. This is the third 75 basis point hike in as many meetings by the Fed, highlighting again their intention to take a strong stance on inflation levels that have spiralled out of control. "The committee is strongly committed to returning inflation to its 2% objective," the Fed said in a statement. Markets now expect US interest rates to finish the year above 4%. For...
GBP EUR Could Head Lower After Growth Revisions

Three Key Events in a Vital 72 hours for GBPEUR and GBPUSD Exchange Rates

The beginning of this week in the UK was very sombre with Her Majesty’s funeral and a UK Bank Holiday. This meant UK markets were shut, and ensured a fairly sleepy start to the week from a currency perspective, with sterling still nestling in the doldrums following the poor Retail Sales data from last week. The rest of this week looks far from calm however, with three key events that could trigger market movements for the pound, US dollar, Euro and many other currencies. The...

Will the Pound Remain Steady after Surprise Dip in Inflation ?

The pound has been relatively steady today following a surprise dip in the headline Inflation numbers. In welcome news across the country, the number came in at 9.9% higher year on year for August, versus the 10.2% numbers from last month for July. The important point is the number has been trending higher since the beginning of the year so this marks a turning point and could potentially signal a change in policy ahead. Inflation is very influential on interest rates, and interest rate...
GBP to EUR Forecast: Will Sterling See Further Losses Against the Euro?

Sterling exchange rates continue to slide – How low can the pound go?

Sterling exchange rates have seen further losses against both Euro and Dollar over the course of the trading week, as investors and speculators alike have made it clear there is a lack of confidence in the Pound at present. With the cost of living crisis bearing down on the UK economy and a prolonged recession on the cards we have started to witness a move away from the pound and it appears that it is being treated much more like a riskier currency rather than...
GBP AUD at Pivotal Point as Tensions Rise between Australia and China 

GBP AUD at Pivotal Point as Tensions Rise between Australia and China 

The GBP AUD exchange rate fell for most of the week with weaker economic outlook for the UK and the Bank of England (BoE) forecasting a recession in Q4 2022. The BoE raised its inflation outlook to 13% for the British economy, which will continue to strain the economic outlook. Data from Nationwide saw a plateau in UK house prices which may be the start of a correction. Meanwhile, Australia angered the Chinese embassy with its comments over the Taiwan military drills. The GBP to AUD rate opens the week at 1.7465, with...
GBP AUD Slips After Australian Retail Sales Rise 

GBP AUD Slips After Australian Retail Sales Rise 

The GBP AUD exchange rate was lower by -0.14% as Australia released new economic data and investors cut positions ahead of the Bank of England rate meeting on Thursday. Retail sales were up by 0.2% in June for Australia, while PMI figures showed expansion in services.  Markets now await the latest Australia trade balance figures and the BoE policy meeting on Thursday. The GBP to AUD hovered at 1.7550 as the pound sterling tries to carve out a price bottom. Aussie dollar boosted by retail sales figures According...
GBP AUD Surges After RBA Hikes Rates Again 

GBP AUD Surges After RBA Hikes Rates Again 

The GBP AUD exchange rate was higher by 1.0% on Tuesday after the Reserve Bank of Australia hiked by another 0.50%. The move took Australian interest rates to 1.85%, higher than the 1.25% in the UK. The BoE will have a turn on Thursday, but a maximum of 1.75% is expected.  The GBP to AUD hovered at 1.7600,  following a strong 200 pip move on the day.  ‘Reverse Bank’ of Australia hikes rates for a fourth-straight month The Reserve Bank of Australia has earned the nickname ‘Reverse...