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...
Sterling softer against the euro ahead of key inflation data
Sterling softer against the euro ahead of key inflation data
Pound sterling softened against the euro during yesterday’s session, reaching a low of 1.1610 on the interbank which was a two-week low for the pairing. Marginal gains for the euro represented a window of opportunity for euro sellers.
GBPEUR reached a new yearly-high last week but has since dropped back by more than a 1%.
Exchange rates continue to be driven by current and future interest rate policy. Market expectations are for the Bank of England to...
UK growth lower as Sterling hits 15-month highs against the Dollar!
Data released this morning confirmed UK GDP fell by 0.1% last month. Despite this, sterling has risen to a 15-month high against the dollar. Cable (GBPUSD) rates open this morning above the key 1.30 threshold. GBPEUR opens slightly softer following the growth data but is still within range of the 11-month high reached earlier this week.
Dollar rates have taken a big hit over the last 24 hours. Yesterday, US CPI (inflation) confirmed a drop in price growth to 4.8%, lower than expectations of 5%....
Pound finishes the week on a strong rally against Dollar and Euro, important week...
The pound again finished the week on the front foot against the Euro, with the highest trading level on Friday (1.1727) just over 10 pips away from the recent 10-month high (1.1738) set by the pair. Arguably the biggest driver of recent Sterling strength is the persistent interest rate hike/potential coming out from the Bank of England (BOE).
The interest rate hikes create an advantageous opportunity for overseas investors to hold large quantities of Sterling and benefit from the improved returns it offers compared to...
Pound hits 10 month high vs Euro and 14 month high vs Dollar
The pound finished the week rallying against the Dollar and the Euro finishing at 1.1723 against the Euro and 1.2808 against the Dollar. In the week the Pound Euro rate reached a 41-week high at 1.1716 and the Pound reached 1.2848 against the Dollar, which was the strongest level since April 2022.
The pound saw gains against the Dollar and the Euro as a there was an unexpected fall in the unemployment rate and a higher increase then expected in wages and job creation in...
This week ahead – Are 2023’s Sterling high’s set to continue?
For the first time in 2023, we saw the Pound breach the 1.16 ceiling against the euro last week. On the 1st of June 2023 we saw a new a 2023 high reached for GBPEUR of 1.1667 with sterling managing to maintain a mid-market level of above 1.16 for the remainder of the week. The Pound saw similar rises against several currencies, most notably the Australian and New Zealand Dollar, respectively climbing to both 2- and 3-year highs.
Analysts have raised their bets on further...
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...
Sterling in a strong position ahead of early May bank holiday
Economic data released at the end of last week showed positive and negative signals for the UK’s economic outlook. UK retail sales are down 3.1% year-on-year and 0.9% month-on-month. The monthly figure is worse than expected with markets expecting a negative reading of 0.5%.
PMI data showed some positive signs but was once again mixed. Services PMI trumped expectations of 52.9 with a reading of 54.9. However, manufacturing PMI was lower at 46.6 vs expectations of 48.5. A reading above 50 signals an expansion within...
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,...
Pound weakens as markets wait for key central bank meetings
Pound weakens as markets wait for key central bank meetings
Sterling closed yesterday’s session softer across the board as markets eye the eagerly anticipated Bank of England and European Central Bank interest rate decisions. Last night, the Federal Reserve in the US announced they would raise interest rates by 25-basis points to 4.75%. The announcement was followed by a statement by the Fed chair Jerome Powell who suggested their current rate hike cycle was coming to an end. The Fed believe the deflation process has...
