UK Inflation remains sticky at 4% – will this help the pound?

UK inflation is holding steady at 4% according to data released by the Office for National Statistics. Last months inflation data also posted at 4% which shows inflation is remaining sticky in the UK. Markets were expecting a slight uptick again so a flatline is better than expectations for UK mortgage holders. Sterling exchange rates have largely remained buoyant following the release as the prospect of interest rate cuts this quarter has decreased. GBPEUR remains within reach of the...

Could the Pound be influenced by this week’s busy economic calendar?

After a fairly muted start to 2024 for GBP exchange rates, the outlook what which factors could influence the currency moving forward have become clear. The Bank of England, European Central Bank and the Federal Reserve Bank in the US are all expected to begin cutting interest rates later this year. But the BoE differs in that the cuts are expected to begin later this year, and the number of cuts is expected to be slightly less.
GBP EUR Exchange Rate: Weekly Review July 16  

What are the latest pound sterling forecasts?

Pound still forecast to be on negative trajectory Here at PSF, we have access to the latest market research and FX forecast data. That is why, when clients come to us for support and assistance with their currency transactions, they know they can rely on authoritative and trusted data. To be clear, predicting and forecasting is not wan exact science. Contrary to popular belief, no one on this planet can totally and...
GBP EUR Exchange Rate: Weekly Review July 16  

Sterling back above 1.17 against the euro – where will rates go next?

Pound Sterling recovered against the euro yesterday afternoon and climbed back above the key 1.17 threshold. This was preceded by a poor reading of retail sales data from the Eurozone which did not support the value of the single currency. Eurozone retail sales are down 0.8% on a monthly basis and 1.1% on a yearly basis vs expectation of 0.9% and 1% respectively. A struggling retail sector could support the premise for an interest rate cut sooner rather than...
GBP AUD Consolidates with UK Employment Due

GBP exchange rates remain strong as interest rates remain at 15-year high

Last week the Bank of England voted to keep interest rates on hold for the 4th consecutive time. Whilst this was expected in the lead up to the decision, we have seen a change in the voting patterns of the 9-voting members. The rate will remain at 5.25% and the vote was a 6-3 split. Interestingly one member of the BoE’s Monetary Policy Committee voted for a cut so could this be the start of a change of approach...
GBP USD Exchange Rate Plunges to Lowest Since September 2020

Pound Sterling Forecast – Bank of England Decision today 

How will the pound react today? The Bank of England hold their latest interest rate decision at midday today, 12pm UK time. No change in interest rate policy is expected, but such events do have the power to move markets and are worth being aware if considering any sterling trades in the coming days, weeks and months. Sterling has recently been trading at strong levels against many currencies including the Euro, Australian dollar, New Zealand dollar,...
GBP USD Exchange Rate Rises Sharply Following Fed Rate Hike 

Sterling hangs in the balance ahead of Fed and BoE decisions

Sterling exchange rates hang in the balance ahead of today’s Federal Reserve FOMC meeting and tomorrow’s Bank of England Monetary policy meeting. The pound has been one of the strongest performing currencies of 2024, mostly helped by the prospect of higher for longer interest rates in the UK vs the Eurozone and the US. UK interest rates currently sit at 5.25% and there is an expectation for rates to be cut by 100 basis points by...

Could this week’s economic updates push the Pound higher?

Looking over a 1-month chart for the Pound to Euro exchange rate, the Pound has gradually climbed in a consistent trend against the Euro. There has been little volatility, but the GBP/EUR pair have climbed from 1.1500 up to 1.1725 in the space of 1-month, which is an almost 2% increase. At last week’s European Central Bank (ECB) interest rate decision and statement afterwards ECB President Christine Lagarde opted not to push back against expectations of...

Sterling hits September high vs the Euro

GBP Last week, we witnessed the release of numerous readings of economic data across the UK, having significant impact on the strength of the British pound.  On Tuesday, we experienced data release of the average earnings. A slow rise in the average earnings was recorded, but regarded promising for the strength of the pound as it takes pressure off the Bank of England- the central bank- by easing inflationary pressure. In theory, this should slow down inflation which may...
GBP EUR Hits New Yearly Highs as Inflation Soars

Pound Euro rates hit highest since September 2023

Today is a key day for financial markets with the latest Eurozone Interest Rate decision. For those unfamiliar, the European Central Bank (ECB) is the central bank for the Eurozone and meets today to discuss interest rate policy. With sterling trading at its strongest in 2024 against the Euro, now is a very important time to be tracking levels. Today’s news has real potential to either upset the current trend or extend it further. If you are buying or...