GBPEUR

This week saw the UK’s Brexit Withdrawal Bill signed and approved by the Queen, making the bill UK law and has ensured that the UK will leave the EU on January 31st. With the original bill being passed by the House of Commons back on January 9th, the bill landed in the House of Lords earlier this week. With the UK confirmed to leave the EU at the end of the month, an EU chief thanked the UK MEP’s in their final meeting on...

The UK waited with bated breath earlier today as the country saw their flash composite PMIs released at 09:30am. This data release was important to the economy as it would give an indication of the direction the GBP is heading, as well as confirming whether or not the positive labour market data from earlier in the week was a one-off or if the pound sterling really is on course for a post-election rebound. The latter seems to be the case after a rise in...

The euro has softened to start Thursday morning, but the market is still optimistic that gains can be made in 2020. However, the US rhetoric highlights an underappreciated risk to the EUR outlook as US-EU trade tensions increase. Some are suggesting that Trump may use the EU as a ‘trade bogeyman’ in the election campaign, which could harm confidence and threaten the economic recovery recently witnessed in the EU. Meanwhile, the euro continues to suffer losses against the GBP as it rebounded after its...

The sterling to euro exchange rate stands at 1.1862 today, on the interbank exchange. This is very close to yesterday’s peak of 1.1867, the pound’s strongest against the Eurozone’s common currency in five weeks, or since December 17th. Sterling has strengthened versus the Eurozone’s common currency, in part because yesterday the UK’s Chancellor of the Exchequer, Sajid Javid, said that the UK and EU can reach a comprehensive trade deal in 2020. Speaking on Wednesday, Mr. Javid said that “There is a strong belief...

The Pound Sterling looks to be recovering lost ground against some of its rivals, including the Euro. This comes after the GBP’s recent success from their labour market results released earlier in the week. There appears to be an increased boost of optimism for the currency as FX traders turn bullish. Despite recent Bank of England (BoE) rate cut worries, the Pound seems to have brushed this aside and its weakness is beginning to fade. The looming UK PMIs are still just around the...

The pound to Euro exchange rate has seen some increased volatility in 2020 owing to mounting speculation the Bank of England might cut their base interest rate. The prospect of cutting of an interest rate by a central bank may often lead to a weaker currency, a key question now is how likely the cut will be and what will happen to pound to Euro rates in and around this event. According to Bloomberg, the prospect of a cut at next Thursday 30th January’s...

Over the past week or so the pound sterling has not fared well. This has given the euro a chance to edge up against the GBP as worries of an interest rate cut enshrouded the currency. The GBP was further limited by poor economic data such as the retail sales figures which came in under par. However, today’s release of the UK’s official labour market figures showed a jump in both employment and wages for December. This caused the GBP to trade higher against...

The GBP to EUR interbank exchange rate has risen, because this morning we’ve learnt that the UK labour market performed better than forecast in the three months to December 2019. According to watchdog ILO today, UK joblessness held steady at 3.8% last month, its joint-lowest since the early 1970s. Meanwhile, Average Earnings Including Bonuses up to November surprisingly rose by 3.4%, above both forecasts for 3.1%, and October’s 3.2% gain. Looking Ahead The financial markets are awaiting the results of IHS Markit’s UK “flash” PMIs (Purchasing Managers’...

The Euro kicked off last week worse for wear as it lost ground to most major currency rivals. This came after an improvement in investor appetite for riskier assets and the US-EU trade tensions came back into the market’s spotlight. Throughout the week, the highlights for the Euro will certainly be the economic data releases and the European Central Bank’s (ECB) decision on their interest rate policies. The combination of the two will be the main drivers of price action for the EUR this...

The pound to Euro exchange rate has rallied in recent days higher despite recent commentary suggesting there could be UK interest rate cut as soon as January 30th. The conversation has moved away from Brexit and on to interest rates even though the 31st January departure date fast approaches. Expectation of a rate cut has risen sharply with interest rate futures now pricing in the prospect of a cut at 70%. This is a steep increase considering it was running at about 10% the...