Sterling exchange rates climb in the lead up to tomorrows key Inflation data release
The Pound rose earlier this morning after the latest wage growth data was released by the Office of National Statistics (ONS).
The data reported that basic wages within the UK grew at a record pace in Q2 this year, as wages excluding bonuses were 7.8% higher than a year earlier during the same time period.
This is also the largest increase since records begun back in 2001, and it adds to the pressure on the Bank of England to try and bring down increasing inflation levels.
Tomorrow...
Will the latest inflation figures help the Pound get stronger?
Last week was a more volatile one for the Pound as GBPEUR and GBPUSD saw 1 cent swings in their pairings, ending the week at 1.159 and 1.269 respectively. Sterling had been riding the recent highs off the back of their 14th consecutive rate hike in the week prior, and there were indications from the Bank of England that this may not be the end of the hike streak. There is currently an 85% chance of another 25 basis point hike at the meeting...
Pound Rises on ‘Higher for Longer’ Interest Rate Expectations
Sterling stronger as UK interest rates remain high
Sterling has been higher following a dip last week. Interest Rate expectations are setting the tone for some of the positions we are seeing so far.
The Bank of England raised interest rates as expected 25 bps last week taking UK interest rates to 5.25%. We did see Sterling dropping on the news.
Cable dropped to $1.2623, its weakest level against the dollar since late June. GBPEUR fell to 1.1565, both have since recovered.
This does highlight once again how...
GBP exchange rates remain steady but could Friday’s GDP data change this?
Now that last week’s busy economic calendar is out of the way, this week feels like more of a typical August week where economic data releases can be quite limited.
The Pound to Euro exchange rate remains around the 1.1600 level, and yesterday there was little market movement throughout the entire day of trading.
The Bank of England’s decision to hike interest rates by 0.25% as widely expected resulted in another drop for the Pound in the 24-hours after the announcement, which is a pattern we’ve...
Bank of England raise Interest rate hikes for the 14th time since December 2021
Last week we saw the Bank of England raise interest rates in the United Kingdom for the fourteenth time in a row. This is another attempt in the long-continued commitment the central bank has taken in the effort to reduce inflation. Inflation levels in the UK are well above target currently sat at 7.9%, 2.4% higher than the European Union and 4.93% higher than the United States. The Bank of England are hoping to end this year with inflation levels at 5%. The current...
Will inflation cause the Pound to rise?
Bank of England raise interest rates for the 14th time in a row
The Bank of England raised interest rates once again yesterday for the fourteenth time in a row. The central bank has committed to reducing inflation rates which remains well above target.
The current base rate is at 5.25% and we should expect more interest rate hikes to come before we see the Bank of England easing monetary policy.
Interest rates have now gone up on every occasion since December 2021.
This has brought the base rate...
Will the Bank of England help or hinder pound sterling?
Today’s Bank of England interest rate decision could help or hinder pound sterling’s future value. It is almost certain that the Bank will raise interest rates for the 14th consecutive time at today’s meeting. A pause in rates would cause shock to the market and likely trigger wide-scale sell-off of the pound.
Current expectations are for a 25-basis point hike. However, there is a chance that the Bank opt for 50-basis points. This would mean back-to-back 50 basis point hikes causing a 1% raise in...
Will the pound rise or fall on the Bank of Meeting tomorrow?
The pound is delicately poised ahead of a key interest rate decision
Sterling has been trading more strongly against a weaker Euro, but is suffering against a stronger dollar. Tomorrow's latest Bank of England decision could trigger some volatility.
Expectations are for a hike but the market is unclear about whether or not it will be 25 basis points or 50 basis points.
There is no doubt UK inflation is running too high, the latest reading was 7.9%. This is well above the Eurozone at 5% and...
Could the Bank of England surprise the markets again this week?
The Pound has managed to hold onto much of its recent gains against the Euro recently, as it continues to trade towards the top end of its annual range.
Last month increasing expectations of further interest rate hikes pushed the Pound to a high of 1.1750, and at the time of writing the GBP/EUR pair are trading within 0.75 cents of this 11-month high.
This week, the Bank of England (BoE) is expected to raise interest rates to the highest level in 15-years.
The general expectation is...
Will the ECB interest rate decision halt sterling’s rise?
The ECB (European Central Bank) have their interest rate decision later today. In recent days sterling exchange rates have once again risen close to yearly highs. GBPEUR and GBPUSD are trading within range of 11- and 15-month highs respectively.
However, Eurozone inflation is still a lot higher than the 2% target set by the bank. Many are expecting another interest rate rise during today’s meeting. Markets are expecting a 25-basis point hike which could lend support to the value of the euro against the dollar...
