Pound hits monthly highs against the Euro and Dollar – will the rise continue?
Pound hits monthly highs against the Euro and Dollar – will the rise continue?
Sterling rose to monthly highs against a number of its major counterparts during yesterday’s session following stronger than expected inflation data. The pound rose against both the euro and the dollar during the most positive session of the year for the currency.
A transfer of £200,000 is buying €4000 and $11,000 more than the low of the last four weeks.
ONS data showed that UK inflation dropped from 10.7% to 10.5%. Inflation has...
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...
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...
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...
Pound set for another eventful day – Will the Pound rise or fall?
The Pound is set for a fairly volatile trading day again today, with politics being firmly in focus over the course of the day.
The latest Chancellor Jeremy Hunt is due to release an emergency statement on the mini budget at roughly 11am today, which may involve further U-turns, tax hikes and changes to the plans laid out by Kwasi Kwarteng merely a few weeks ago.
That mini-budget sent the markets into turmoil and dented the pounds value significantly, his exit and a U-turn recently have...
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...
