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...
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...
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...

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 to US Dollar Exchange Rate Rebounds as Boris Heads to Brussels to Break Brexit Deadlock

Pound to Euro: Sterling Strength as Brexit Talks Resume

The pound has started the week off well and truly on the front foot against all major currencies; sterling has seen the biggest daily jump against euro for two months, with interbank levels for pound to euro sat above 1.1250 at the time of writing. With a market move of over 0.85% during yesterday’s trading those that have been waiting for the moment to secure a euro purchase will have had a promising day, but what could we see happen next for sterling exchange...

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...
GBP to CHF Forecast: Is the CHF Still a Safe Haven Currency?

GBP to CHF Forecast: Is the CHF Still a Safe Haven Currency?

The pound to Swiss franc exchange rates over the past month have followed a very similar patterns to many other currency pairings involving Sterling such as GBP/EUR and GBP/USD. The start of March saw rates at 1.24 which is mid-range over the past 3 years but swiftly plunged over 10% to 1.11 on the 19th March – the same day that the GBP/EUR and GBP/USD all arrived at their multi-year low. In comparison to the Swiss franc, this was a record low never reached...

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 to CHF Rate: Sterling Supported Against the Swiss Franc as Boris Johnson's Health Improves

GBP to CHF Rate: Sterling Supported Against the Swiss Franc as Boris Johnson’s Health...

The GBP to CHF interbank exchange rate today has been ranging between 1.2017 and 1.2092. The pound looks supportive today on the back that Prime Minister Boris Johnson, is on the road to recovery from Covid-19. Swiss Economy Expected to Shrink Possible 10% Switzerland has had over 23,000 cases of the Coronavirus that has had a negative impact on their economy with current expectations that their economy could shrink as much at 10%. Many industries in Switzerland have been affected including the manufacturing and industrial...