GBP/EUR Outlook: Sterling Claws Back Some of its Losses Against the Euro as the UK Implements a Partial Lock-down

GBP/EUR Outlook: Sterling Claws Back Some of its Losses Against the Euro as the...

We are currently in unprecedented times, this situation has never occurred in modern history and so there is little to draw from as to market reaction. What we can look at is where investors move to in times of global economic uncertainty and unfortunately sterling is not considered to be a safe haven currency. The UK’s imports vastly outweigh our exports and due to this during times of global economic downturn sterling is not the destination of choice. To add to the pounds woes we...
Euro Nears 34-Week Low Following Poor Data as GBP Eyes Up Long-Term Outlook

UK economy could contract by 5.4% this year, says KPMG

KPMG’s latest quarterly economic report has stated that the continued coronavirus epidemic will push the UK into a deep recession. Businesses have already closed their doors and consumers are limiting themselves to the purchase of essential goods only. The report predicts that the UK will suffer a GDP drop of 2.6% this year if the government gets control of the problem in the coming weeks, but if the pandemic stretches over the summer, the UK economy could contract by 5.4% in 2020. “It is...
Pound to Euro Rates Marooned Under 1.12 as UK Political Battle Intensifies

GBPEUR: Sterling strengthens against euro following major fall last week

Over the weekend we saw governments around the world impose stricter controls on the movement of people due to Covid-19 and the increasing number of reported cases and deaths. The UK government has introduced a number of measures to support the UK economy to contain the pandemic and deal with the economic fallout. This morning the House of Commons is looking to pass emergency legislation giving ministers greater powers to deal with the Coronavirus including powers to shut down ports and detain people suspected...
GBP to EUR Outlook: Sterling Rallies Over 1.12 Against the Euro, What Could Happen to Exchange Rates Ahead?

GBP to EUR Exchange Rate: What Effect Has the Coronavirus Had on Pound to...

With the global focus remaining on the coronavirus outbreak, it is worth noting what the UK and European central banks have done to combat the onslaught of the COVID-19 pandemic. With the disease knocking the world since its step-up from a few cases in China to every continent in the world now experiencing some form of outbreak, pressure has mounted on central banks across the globe to prepare and introduce measures which will offset the damage caused by the worldwide interruption as workers lose...
Pound to Euro Forecast: Will the Coronavirus Further Influence GBP/EUR Rates Ahead?

Pound to Euro Forecast: Will the Coronavirus Further Influence GBP/EUR Rates Ahead?

Since the end of 2019, the coronavirus has had the world in its tight grip as it continues to spread throughout the globe, with every continent feeling the effects of the global fallout from COVID-19. The virus originally broke out in Wuhan, China, but has since spread further west now reaching the United States. Countries around the world have gone into ‘lockdown’ to prevent the spread of the deadly disease with Italy, Spain, Norway and Belgium to name a few of the countries currently...
GBP to EUR Exchange Rate: How Did Sterling Fare Against the Euro this Week?

GBP to EUR Exchange Rate: How Did Sterling Fare Against the Euro this Week?

In another week dominated by coronavirus headlines, the pound sterling took a tumble against the euro in the early week. The single currency continued to benefit from the demand of euros as global stock markets crashed amid the fallout from the COVID-19 panic across the globe. The euro also benefitted against GBP as the market noted a seemingly lack of action from the UK government as the UK had released little stimulus plans to help the economy in the first half of the week,...
Pound to Euro Forecast: How Has GBP Turned the Tables on EUR at the End of the Week?

Pound to Euro Forecast: How Has GBP Turned the Tables on EUR at the...

Towards the end of the trading week, the UK government and Bank of England (BoE) mounted a comeback against the euro. In a series of events, the Bank of England (BoE) slashed interest rates from 0.25% to 0.1%, introduced further quantitative easing methods and pledged to provide more stimulus packages for the UK economy in an attempt to offset the damage caused by the COVID-19 outbreak. The moves were welcomed by GBP traders as the euro has had the edge over GBP in recent...
GBP to USD Rate: Sterling Surges Almost 7% in a week of Extreme Volatility

Pound to Euro Forecast: GBP Soars 3% Higher as Bank of England Combats Coronavirus

The pound sterling soared 3% overnight following the decision by the Bank of England (BoE) to cut its interest rate and significantly boost its quantitative easing programme while similar moves by the European Central Bank seem to have subdued the euro’s strength. The Pound also bolstered its strength as it saw a rally following an announcement from UK PM Boris Johnson yesterday in which he indicated the UK government may reveal more plans for the protection of jobs and wages over the course of...
GBP/EUR Exchange Rate: Shock BoE Rate Cut Sends Sterling Higher Against Euro

GBP/EUR Exchange Rate: Shock BoE Rate Cut Sends Sterling Higher Against Euro

Yesterday saw the British central bank, the Bank of England (BoE) announce that it had opted to cut the UK’s interest rate to 0.1%. The decision was justified by the bank in an action to combat the damage caused by the coronavirus outbreak. The UK central bank’s governor Andrew Bailey noted that there was not one single factor in making the decision to cut the rate for the BoE but a combination of recent events and downward pressures on the pound sterling. Recently, the...
Pound to Euro Exchange Rate: EUR Falls Against the Pound After ECB Announces Massive Quantitative Easing Program

Pound to Euro Exchange Rate: EUR Falls Against the Pound After ECB Announces Massive...

The pound to euro exchange rate rose overnight following the announcement from the European Central Bank (ECB) that it plans to announce a mammoth quantitative easing program in order to combat the negative impact of the coronavirus outbreak within Europe. The euro found itself under intense pressure on Thursday following the overnight announcement which saw the launch of the Pandemic Emergency Purchase Programme (PEPP). The plan will see Christine Lagarde’s governing council spend an additional €750 billion in European government and corporate bonds before...