Will the pound continue to fall? Sterling exchange rates hit multi-month lows
Sterling finished the trading week on the back foot, closing out at 1.1480 against the Euro a four-month low since 15th May.
Unfortunately, against the dollar it was a similar story with the week closing out at 1.2235 against the Dollar a six-month low dating back to the 27th March.
The main reason for Sterling’s demise is the uncertain UK outlook from the financial markets, largely due to the economic data prints in the week.
Primarily lower than expected inflation print on Wednesday changed the outlook of...
Could the Pound fall further following the latest Bank of England update?
Last Thursday the Bank of England caught the markets off-guard and voted to keep interest rates on hold.
This broke the recent trend of continuously hiking interest rates at every opportunity, and it was the first time since December 2021 that the BoE opted not to hike rates, breaking a streak of 14-consecutive interest rate hikes.
At the beginning of last week, the markets had predicted an 80% chance of another rate increase so understandably the Pound weakened when the rate was paused.
A slowing down of...
Bank of England surprise the markets
Bank of England keeps interest rates on hold
The Bank of England kept interest rates on hold yesterday after 14 consecutive interest rate hikes.
On Wednesday morning we saw UK inflation coming out lower than expected.
This caused the Pound to fall to its lowest level against the Euro since the end of May.
This has created some excellent opportunities for anyone looking to sell Euros to buy Pounds.
The members of the Monetary Policy Committee voted 5-4 in favour of keeping interest rates on hold.
Therefore, could this be...
Will the Bank of England’s decision strengthen or weaken the pound?
Will the Bank of England’s decision strengthen or weaken the pound?
The outcome of today’s Bank of England interest rate decision will strengthen or weaken the pound moving forward. Sterling exchange rates took a big hit yesterday following an unexpected drop in inflation from 6.8% to 6.7%.
In the lead up to yesterday, many commentators and economists were expecting inflation to rise with predictions set at 7.1%. Even chancellor Jeremy Hunt warned of another uptick in price rises.
The Bank of England have raised interest rates at...
Will the Pound Fall Further on Bank of England Decision and Falling Inflation?
Sterling lower after UK Inflation drops more than expected to 6.7%
The pound has dropped across the board today after UK Inflation data came in lower than expected. This is good news in one sense as the Bank of England has been trying to bring this down for many months.
Sterling has been supported by expectations of a higher interest rate in the future, with a key meeting tomorrow.
UK interest rates are much higher in the last year than in recent years, this will typically see...
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...
Will the ECB rate hike help the Pound improve against the Euro?
European Central Bank Interest Rate Decision
The European Central Bank hiked interest rates for the tenth time in a row yesterday afternoon.
Rising inflation has been a problem that central banks have had to deal with since the pandemic.
The Bank of England have also increased interest rates fourteen times in a row. The expectation is now for 'another one and done'.
The expectation is that we'll see potentially one more from the Bank of England before they pause to see the impact upon inflation.
The ECB are in arguably...
Will the ECB help or hinder Sterling exchange rates?
Will the ECB help or hinder Sterling?
Euro exchange rates hang in the balance ahead of today’s European Central Bank monetary policy meeting. The key decision could help or hinder sterling’s position against several of its counterparts.
Sterling exchange rates will react depending on the outcome of their decision. Most affected, would be GBPEUR due to the pairing including the euro, however, cable (GBPUSD) rates could also be affected.
EURUSD is the most traded currency pair globally which means significant movements on the rate can impact other...
Pound Sterling Forecast: How to get the Best Pound to Euro Exchange Rate
Pound Sterling Forecast, what we can expect for the pound?
Getting the best pound to euro rate is about being prepared and tracking key economic data and information.
"Hope", is not usually a good strategy. Relying purely on "luck" and hoping that the market will magically go your way can often lead to disappointment.
Just because you cannot totally predict the direction on rates, doesn't mean you should just give up and accept your fate.
To help my clients get the best rates, I take the time to...
Will the Bank of England stop hiking interest rates after next week’s expected hike,...
The Bank of England is expected to hike interest rates once again on the 21st of September, bringing the base rate of interest up to 5.5%. This would be a 15th consecutive interest rate hike from the central bank, with the rate currently sitting at a 15-year high.
Throughout the year the increasing rate hikes have helped push the Pound higher against most currency pairs, and the Pound was the strongest performing currency of the G10 in the first half of the year.
Expectations of further...
