Could a UK recession apply further downward pressure on the Pound?

Last week the Bank of England voted to keep interest rates on hold at 5.25% as expected by the markets. Financial analysts now believe that the Bank of England has completed its current cycle of interest rate hikes with the attention now turning to how long the BoE will keep interest rates at the current elevated levels. The Pound remained quite flat against the Euro as a result of the decision, but due to some US Dollar weakness the Pound to US Dollar rate actually climbed...
GBP EUR Drops After Bank of England Recession Warnings 

Will the Bank of England decision cause sterling to rise or fall?

Will the Bank of England decision cause sterling to rise or fall? Sterling exchange rates hang in the balance this morning ahead of the Bank of England interest rate decision. The outcome of the decision could cause movement in either direction for sterling exchange rates. The Bank’s monetary policy committee are expected to vote for interest rates to remain unchanged. GBPEUR is trading within half a cent of the 5-month low. GBPUSD (cable) is trading 10 cents lower vs the highs seen in July. This represents...
GBP EUR Could Head Lower After Growth Revisions

Will the pound rise or fall on the Bank of England decision?

Sterling could be under pressure tomorrow The pound could suffer at the hands of the Bank of England tomorrow, as the UK's central bank meets to discuss its latest policy. Expectations are for a pause in their interest rate hike cycle, with the market likely to be focussed on the duration of this pause. Could we see sterling weaker as investors are satisfied that no more hikes will happen? Or will the pound rise as the 'higher for longer' expectations see investors backing the pound. What does history...

Will comments from the Bank of England this week help support the Pound?

Another week without many economic updates out of the UK is on the cards this week, with the main focus being the Bank of England’s interest rate decision on Thursday. The Pound suffered last week, losing value against both the Euro and the US Dollar as the lack of data released from the UK left the Pound vulnerable. Aside from the USD and Euro strengthening against the Pound, the Pound is also vulnerable at the moment due to global risk sentiment declining due to the...
GBP EUR Advances Despite Better German Trade 

Will Sterling rise or fall following the ECB decision?

Will Sterling rise or fall following the ECB decision? Today, the currency markets await a key decision from the European Central Bank. The Central Bank for the Eurozone will meet for their latest interest rate and monetary policy meeting. Currently, interest rates sit at 4.5% and inflation levels remain high in the Eurozone. The ECB have been raising interest rates for more than a year in attempt to bring inflation under control. An interest rate rise could lend support to the value of the euro, where...
GBP EUR Exchange Rate: Weekly Review May 21st  

Pound Sterling Forecast – Will the Pound Continue to Fall

Pound Sterling Forecast to Drop The outlook for the pound continues to be on the negative side, as investors become less hopeful of an interest rate rise in the UK. The Bank of England meet next week to discuss their latest Interest Rate decision, and the odds are very high of a continued pause. Recent economic data seems to also indicate this is likely to the case, with continued concern over the economic outlook for the UK. Our forecast data suggests a weaker pound Here at pound sterling forecast,...

Will the Pound continue to fall from its current levels?

Last week the Pound fell to its lowest level against the Euro since May, making it a 5-month low after further downward pressure was applied to the Pound. There had been some support for the Pound around the 1.1500 level although last week this threshold was broken with the GBP/EUR rate dropping as low as 1.1439. Despite recovering slightly from this low, the pair remain below 1.1500 so those of our readers hoping for a rebound in the Pounds fortunes will be disappointed so far. It...
GBP to EUR Forecast: Will Sterling See Further Losses Against the Euro?

Pound Euro rate hits 5 month low

The Pound Euro exchange rate has hit its lowest level since May 2023. The Pound has been under pressure since the Bank of England announced that they would be pausing monetary policy last month. In what was a close vote the central bank chose to keep interest rates on hold. This was for the first time in a long time. The Bank of England had hiked interest rates 14 times in a row in an attempt to combat rising inflation. With inflation falling in to the 6%...

Will a change in outlook from the Bank of England cause the Pound to...

Sterling exchange rates have dropped off since the Bank of England (BoE) opted to pause interest rate hikes. The last increase was made on the 3rd of August and the BoE kept rates at this level on the 21st of September which came as a surprise to the currency markets, and resulted in a slight weakening of the Pound against the Euro, US Dollar and most other major currency pairs. The next opportunity for the BoE to amend rates will come on the 2nd of November,...
GBP EUR Exchange Rate: Week in Review October 9th

Pound Sterling Forecast for October

Are we more likely to see the pound rise or fall in October? Expectations for the pound see a number of different forecasts which may well influence any decision to buy or sell sterling. The currency markets are not totally predictable. However, by assessing previous behaviour and past performance, it is possible to make predictions. By looking at upcoming events, we can make some judgment calls on what might happen in the future, based on how the FX markets have responded in the past. Pound to Euro forecast...