Pound to Euro Volatility on Negative Interest Rates

The pound to euro exchange rate has been very sensitive to key issues of late, namely Brexit and the prospect of negative interest rates from the Bank of England. This week has so far seen numerous oscillations back and forth on both of these issues, in a sign of perhaps some of the volatility we can expect ahead. Yesterday, on the topic of negative interest rates sterling lost ground against the euro and US dollar as Bank of England Governor Andrew Bailey floated once again...
Pound to Euro: 9th Round of Brexit Negotiations Resume Today

Pound to Euro: 9th Round of Brexit Negotiations Resume Today

The pound to euro exchange rate rallied strongly yesterday by over 1% just before the UK and EU enter the 9th and final round of trade discussions today. GBP EUR reached a high of 1.1074 before falling in later afternoon trade. It all comes at a time when new COVID-19 cases are increasing rapidly both in the UK and the EU. If sufficient progress is made, then both Sir David Frost and Michel Barnier will then enter so called “tunnel” where final agreements will...
Pound to Euro - GBP Rises on Rishi Sunak’s Furlough Part 2

Pound to Euro – GBP Rises on Rishi Sunak’s Furlough Part 2

One of the concerns in recent weeks over the British economy has been the end of the furlough scheme, with the financial markets apprehensive about the employment picture once the scheme ends in October. Rishi Sunak helped the pound to euro find some support yesterday by providing some clarity about what happens next, with an announcement that from the end of October the government would subsidise employees working at least 1/3 of their usual hours. To avoid the government backing jobs which are no longer viable,...
Pound to Euro Falls as Further COVID Restrictions Announced

Pound to Euro Falls as Further COVID Restrictions Announced

The pound to euro exchange rate has dropped further on the back of three main components: Brexit, COVID-19 and the prospect of negative interest rates. Brexit negotiations continue to be the dominant driving force for sterling with only a few weeks to go before the crucial EU summit on October 15th. UK Prime Minister Boris Johnson has also signalled that if an agreement is not reached by this date then both sides should "move on". Ever since the UK internal market bill appeared as a...
Pound to Euro Falls Despite BoE Distancing From Negative Interest Rates

Pound to Euro Falls Despite BoE Distancing From Negative Interest Rates

Pound to euro fell 0.25 percent during yesterday’s trading despite Bank of England governor Andrew Bailey distancing the bank from any short-term action in relation to negative interest rates. The pound to euro exchange rate had weakened following last week’s Monetary Policy Committee meeting in which the bank confirmed negative interest rates were still a monetary option that were being considered. This instantly led the market to begin pricing in a rate cut for Q1 next year but yesterday Bailey said that negative interest...
pound to euro: Will the U.K head into another lockdown?

Pound to Euro: Further Lockdown Measures and Brexit Negotiations

Will the U.K head into another lockdown? This morning at 11am professor Chris Witty is due to address the nation in what is expected to be a stark warning about the months ahead, and to summarise the position that we are currently in with the covid-19 pandemic. Expectations are that later this week Prime Minister Boris Johnson is also due to follow up with new restrictions and plans for taking on the pandemic and attempting to stem the growing number of cases throughout the U.K at...
Brexit Uncertainty Causes Volatile Day for Pound to Euro

Brexit Negotiations Remain Key to Pound to Euro Rate

Pound to euro held on to a weekly gain of 1% despite coming under heavy selling pressure Friday afternoon. The pound to euro exchange rate closed the week at 1.0915 having reached 1.1008 the day before and dipped to 1.0775 exactly 1 week prior. The pound is being heavily influenced by on-going Brexit talks and the currency pair is highly sensitive to media headlines and information leaked from sources close to the negotiations. Brexit talks have been gridlocked for sometime as the UK and EU...
Pound to Euro: BoE Consider Negative Interest Rates

Pound to Euro: BoE Consider Negative Interest Rates

There is no shortage of events to move the pound to euro exchange rate at present and the last 24 hours has seen some key events. Most notably the Bank of England has indicated it is ‘exploring’ further the possibility of negative interest rates with the FT considering much of 2021 will see UK interest rates at -0.1%. There was also the potential for more Quantitative Easing (QE) predicted for November, and with the R rate of infection rising in the UK to 1.7 according...
GBPEUR Forecast – Internal Market Bill Drives GBP Lower

GBPEUR Forecast – Internal Market Bill Drives GBP Lower

The GBPEUR exchange rate remains on a weaker footing as Brexit uncertainty dominates the news headlines. The response to the internal market bill which was first heard about last week has been the sole cause of the sharp decline in the price of sterling with the EU considering taking legal action against the UK. The pound saw its worst performance since March last week against both the Euro and the dollar as the prospect of Britain leaving the EU without a deal increased. The...
GBPEUR: Sterling Remains Vulnerable

GBPEUR: Sterling Remains Vulnerable

Sterling is currently in a very vulnerable position. There has been in a rise in COVID cases around the country and Boris Johnson has already made the move to stop public gatherings above six people. If we continue to see cases rises we could see further lockdown measures which will have an impact on the economy. The key issue however remains to be Brexit. There has been very little process in recent talks with Barnier at one point stating he was not prepared to negotiate...