GBPEUR Sees a Sharp Rebound with ECB Stimulus Plans

Pound hits lowest rate since ‘mini-budget’

Yesterday saw the pound weaken further against the euro, falling to the lowest GBPEUR rate since the now infamous Liz Truss/Kwasi Kwarteng ‘mini-budget’. GBPEUR was trading at 1.1257 during the low of yesterday’s session. The downward pressure on the pound begun a month ago now following the European Central Banks (ECB) decision to hike interest rates by 50 basis-points. The pound has lost 3.5% against the euro in the last 4 weeks. A transfer of £100,000 is currently buying €4100 less vs a month ago. In...
GBP AUD Pauses After a Recent Bounce Higher 

Interest rate expectations could be the main driver behind GBP exchange rates in 2023

Towards the end of last week we saw some considerable volatility within the currency markets as data releases, mostly US based resulted in some big swings for a number of currency pairs. Sterling exchange rates, particularly cable (GBP/USD) saw price changes of over 1% towards the close of the trading day as the Dollar weakened across the board of major currency pairs. There has been more of a risk-on attitude within the markets owing to expectations that US interest rates may not be hiked much higher,...

Sterling exchange rates against Euro and Dollar this week

As we entered the new year, sterling ended a turbulent week on the up against both the euro and the dollar after a wave of data across the continent and the pond was released. The pound finished the week over 0.5 cents higher (1.1360) than where it started (1.1290) against the euro and at similar levels to where it started (1.2060) against the dollar. The pound managed to recover over 2 cents alone against the greenback on Friday after early week losses. The cause for...

UK economy expecting a tough year – how will this impact the pound?

UK economy expecting a tough year – how will this impact the pound? Pound sterling exchange rates experienced a tough end to the year 2022. Throughout last year the Bank of England raised interest rates in an attempt to cool-off rampant inflation. This saw interest rates rise from 0.25% to 3.5%. The interest rate hikes initially provided support for the pound, but the last few BoE meetings have been surrounded with negative commentary regarding the UK’s economic outlook. The cost of borrowing in the UK has...
GBP EUR: Halifax Sees Signs of Housing Slowdown

What to expect from GBP exchange rates in 2023?

Looking back on 2022, GBP exchange rates had one of the most volatile years on record especially against the US Dollar. After such a bumpy ride for the Pound you may expect to see less volatility for GBP exchange rates but with economic growth set to drop this can never be ruled out, especially at the beginning of the year. To recap 2022, GBP/USD experienced its worst annual performance since 2016 which was an exceptional year owing to the unexpected Brexit vote which caught the currency...

What will 2023 Bring For Sterling Exchange Rates?

Sterling exchange rates have dropped on the whole throughout 2022 and it is fair to say there are a number of quite obvious reasons behind the poor performance of the pound over the course of the year. Here is a summary of GBP paired against a selection of major currencies and the movement since 1st Jan 2022 as an example. GBP/USD -10.79% GBP/EUR -4.97% GBP/CAD -5.44% GBP/AUD -4.69% GBP/CHF -9.97% All in all, the above suggests the pound indeed had a torrid time of it, most notably shortly after Liz Truss...
GBP to EUR Forecast: Will Sterling See Further Losses Against the Euro?

Negative growth puts further pressure on the pound

Negative growth puts further pressure on the pound The pound has had a negative start to the week losing ground against the euro, dollar, and a basket of other major currencies. The Bank of England’s latest interest rate hike did little to support the value of the pound. Sterling lost value against the euro and dollar almost immediately after the banks statement, a week ago today. Downward pressure on the pound was further fueled by the European Central Bank’s decision to raise rates by 50-basis...

How will the pound perform as we end 2022 and what will the pound...

The pound has been mixed in December with a strong performance as we started the month, only for the Bank of England meeting last week to see confidence fall as interest rates were raised 0.5% versus the 0.75% some had anticipated. Inflation, one of the key metrics influencing monetary policy has also been seen to be cooling or possible peaking, removing some of the more immediate urgency for the Bank of England to act with further aggressive interest rate hikes. Interest rate hikes are typically supportive...

The Pound loses momentum, could next year bring further falls for GBP exchange rates?

GBP exchange rates have cooled during the month of December, with GBP/EUR and GBP/USD both easing from the 3-month highs they begun the month trading at. There had been a considerable upward momentum for GBP exchange rates after Jeremy Hunt became Chancellor of the Exchequer and reversed the questionable tax cuts made by the previous Chancellor. Rishi Sunak replacing Liz Truss also buoyed the financial markets sentiment towards the UK economy and this helped give the Pound a boost, but perhaps the honeymoon period is...
GBP EUR Rallies After Bank of England Rise in Interest Rates

BoE interest rate decision looms – will it help or hinder the pound?

BoE interest rate decision looms – will it help or hinder the pound? The Federal Reserve announced last night their latest decision to raise interest rates by 50-basis points. This move takes US interest rates to 4.5%, the highest level in 15 years. 50-basis points is the smallest hike since May after the Fed raised by 75-basis points at the previous four meetings. This decision was likely influenced by Tuesday’s CPI data which indicated inflation may have hit its ceiling. US CPI is at 7.1% vs...