Pound to Dollar Rate Dips Due to Risk-Off Mood

Pound to Dollar Rate Dips Due to Risk-Off Mood

The pound dropped back below 1.40 on Friday – down from the three-year highs of 1.42 earlier in the week – as risk appetite diminished following a sharp spike in bond yields, forcing investors to seek shelter in safer assets such as the dollar. Stronger-than-expected data from the US economy stoked fears that the Federal Reserve could withdraw fiscal stimulus sooner than anticipated, helping Treasury yields to record their biggest daily rise since March. Household income in the US rose 10% in January from December,...
Pound sterling forecast: GBP to EUR

Pound sterling forecast: GBP to EUR

The GBP to EUR exchange rate has started the week with a gain of 0.35% as traders await German inflation numbers. The last couple of weeks has seen markets become fixated on inflation as fears of overheating prices have driven bond yields higher. The GBPEUR sold off are soaring to its highest level in almost a year. Wednesday will see the UK government budget announced and this may be the deciding factor for the pound to euro outlook in the weeks ahead. The Prime Minister...
Pound to Euro Forecast: BoE Chief Economist Haldane Warns of Inflationary ‘Tiger’

Pound to Euro Forecast: BoE Chief Economist Haldane Warns of Inflationary ‘Tiger’

The GBPEUR exchange rate saw a strong move towards the 1.17 figure on Wednesday after Boris Johnson confirmed his reopening plans. The pair gave up some of those gains as profit-taking kicked in ahead of the latest budget from Chancellor Rishi Sunak. Sunak has an opportunity to boost the battered economy after its worst slump in 300 years on the back of the government’s lockdown strategy. The Bank of England’s Chief Economist Andy Haldane has warned of an inflationary ‘tiger’ tat has been awoken...
GBP to EUR Holds Support with Sunak Budget Ahead

GBP to EUR Holds Support with Sunak Budget Ahead

The GBP to EUR exchange rate reversed a two-day bout of selling to hold the key support level at 1.1500. The pound had stormed to nearly 1.17 after Boris Johnson confirmed his roadmap for reopening the economy. GBPEUR will face economic data early in the week, before UK Chancellor Rishi Sunak delivers his second budget, which traders hope will add a further boost to the country’s emergence from lockdown. Inflation and Bond Markets Test Central Banks It was a busy week for the UK and European economies,...
GBPEUR Exchange Rate: Sterling Stabilizes After Profit Taking

GBPEUR Exchange Rate: Sterling Stabilizes After Profit Taking

The GBPEUR is lower on Friday after a bout of profit-taking ahead of the budget on Wednesday. Traders are taking a step back from the pound’s rally on the expectation of a second quarter. Boris Johnson’s cautious path to reopening has ensured it will be a late second quarter bounce, but a slower vaccine rollout and Chancellor Merkel’s “third wave” warnings have limited the euro strength. GBPEUR came close to hitting 1.1700 on the week but that is unlikely today. The pair may consolidate around...
GBP to EUR Slumps Ahead of Budget

GBP to EUR Slumps Ahead of Budget

The GBP to EUR exchange rate has surrendered strong gains on the week to trade below the key 1.1500 level. Traders pushed the pair higher after Boris Johnson outlined his strategy for restarting the economy. Investors are now getting cold feet ahead of the budget next week and some profit-taking is spurring losses. GBPEUR is trading at 1.1484 and without any big economic data ahead on the day, the pair may settle around this level. Sunak to Target Pensioners With ‘Stealth Tax’ Wealthy pensioners are set to...
Pound to Euro Exchange Rate: Hammond Criticizes ‘Extravagant’ Spending

Pound to Euro Exchange Rate: Hammond Criticizes ‘Extravagant’ Spending

The GBPEUR was lower on Thursday as sterling pulls back from strong gains ahead of the upcoming budget from Rishi Sunak. Pound traders pushed the pair to almost 1.1700 yesterday as the march towards the April 2020 highs continues. Some caution is now showing up and the pair may consolidate before the budget with no major economic data in the pipeline. GBPEUR has support at 1.1500 and resistance at the 1.2000 level, which was the high for the pair in April 2020. The former price...
GBPEUR: EU Causing Frustration with Shellfish Exports

GBP to EUR Could Pause Ahead of the Budget

The GBP to EUR exchange rate surged to almost 1.1700 yesterday as traders placed further bets on a UK recovery in the second quarter. Boris Johnson’s reopening may be more cautious than hoped, but the country should be better placed than others to move forward. GBPEUR is trading at 1.1615 after giving up yesterday’s advance and we may see the pair retreat ahead of the budget next week. Focus turns to UK budget support Traders in the GBPEUR are now turning their attention to next week’s budget...
GBP to EUR: Pound Gives Up Strong Gains on the Day

GBP to EUR: Pound Gives Up Strong Gains on the Day

The GBP to EUR exchange rate is pulling back from a surge higher, which almost hit the 1.1700 level as traders anticipate a second quarter rebound for the economy. Boris Johnson’s reopening plan was maybe more cautious than some had hoped but the country will be open in stages to a full opening in the last month of the second quarter. Investors are also looking ahead to the Chancellor’s budget next week and this could see further support for businesses and the jobs market. GBPEUR...
GBPEUR: EU Causing Frustration with Shellfish Exports

GBPEUR Surges Towards 1.17 as Traders Bet on Recovery

The GBPEUR exchange rate surged to almost 1.1700 as traders gave Boris Johnson the benefit of the doubt in his reopening plan. The Prime Minister’s cautious approach may be overdone, but investors are betting on the UK to outperform the EU and there is also a budget coming next week that will likely double up as a stimulus plan. GBP to EUR is trading at 1.1665 as the pair moves further towards the April 2020 highs of 1.2000. Traders ignore employment for budget shot in the...