GBPEUR Exchange Rate: The Week Ahead May 9th

Euro Stress Test results tomorrow should set pace for next weeks movements

GBPEUR has experienced tremendous volatility in the month of July and I would expect this to continue with many more data releases and events to sway the markets. Unsuprisingly the debt crisis has a lead role in this feature and a sign of the direction that it could take may be provided tomorrow. The European Banking Authority releases results of European Bank Stress Tests. The idea is to simulate economic turbulence on the markets which could potentially harm the banks and hence the global economy.  Capital reserves will be one of the key...

UK inflation means Sterling retraces gains – Unemployment figures key today

UK inflation, or CPI (Consumer Price Index) was released yesterday and contracted 0.1% MoM. This meant that YoY inflation fell from 4.5% to 4.2%, although this is well above the Bank of England's 2% target inflation was expected to hold steady and this has meant that an interest rate hike in the UK now seems even further off. On top of this there have been numerous different predictions on Q2 GDP figures for the UK, none of which have come in higher than 0.2%...
Pound to Euro Exchange Rate with UK Election Heating Up

GBP/EUR close to a month high this morning

GBP/EUR had a good start for the third day in a row since the interest rate hike last Thursday and pushed very close to a month long high. The Euro is now really coming under strain from the PIIGS of Europe, as Italian Sovereign Debt - one of the 'PIIGS' that has managed to avoid much media spotlight has really come under fire. There is now talk that the European Stability Fund may have to be doubled in order to be able to potentially bailout Italy,...
Pound exchange rates up following positive Brexit news

Interest Rates raised to 1.5% in Europe but priced into market

Jean Claude Trichet and the ECB raised interest rates yesterday to 1.5%. Following Trichet's statement that they needed to take 'strong vigilance' towards inflation after last months meeting speculators had guessed that rates were going to be raised this month and the Euro managed to hold strong despite Sovereign debt. As the raise was 0.25 points, just as the market expected there was no huge reaction from the market and strangely the Euro lost ground against Sterling, before the NIESR (National Institute of Economic ad...

Portugal has its debt rating downgraded to junk – Another chapter in the dismal...

This makes me think that we are not far from the next round of bailouts after Greece is dealt with for a second time. I read a very interesting article on the BBC site that actually discussed how German politicians are pushing through a court case claiming that the bailouts are illegal. It is not just the German public who are disgruntled at being Europe's cash machine, it is also many senior level politicians who resent the way this is heading. And who can blame...

GBP Rates Remain Steady

GBP exchange rates have remained steady this morning following strong gains posted yesterday in what proved to be an extremely volatile day. The pound had a poor start following lower than expected PMI data in the morning leading the GBP/EUR hitting 13 month lows, many had expected this trend to continue following the Bank of England and ECB's interest rate decision. As expected both central banks held base rates at 0.5% and 1.25% respectively, this lead to little movement but the post decision conference...
Pound to Euro Exchange Rate with UK Election Heating Up

GBP Rates Struggle prior to GDP

GBP exchange rates have struggled today falling 1 cent against the Euro as the market eagerly awaits UK GDP data released at 09:30 tomorrow morning. Figures are expected to come in at 0.5% an improvement from the previous quarter of -0.5%. Should figures come in any worse than 0.5% I would expect pressure for Sterling and the reverse should we see growth figures better than expected.
Pound to Euro Forecast - Leadership Contest Drives GBP/EUR Rate Lower

GBP Rates Improve on Retail Sales

Sterling has had a good start to the mornings session following positive Retail Sales figures released at 09:30. The Office for National Statistics said retails sales volumes including automotive fuel rose 0.2% last month beating forecasts for a 0.5% fall, after February's 0.9% decline. With figures being much better than expected we have seen the pound gain 0.3% this morning. For those with an interest in Euro/dollar rates are currently at anear 18 month high, possibly a good time to trade should you need to...
The GBPEUR exchange rate is 0.06% higher on Friday as the pair remains largely flat.

Euro Rates Slip On Finnish Election

GBP Euro exchange rates have moved a little against the Euro at present this morning following the Finnish election results yesterday.  The result saw the "True Finns" party achieve a significant minority and they are staunchly opposed to Finnish taxpayers money being used to bail out struggling member states like Greece, Ireland, and Portugal.  Whilst not earth shattering news it has dented confidence in the Euro slightly on what is an otherwise quiet day for UK and European data as the True Finns they are...
The Pound Continues Its Fightback

Sterling Edges Up Slightly against the Euro

GBP exchange rates have edged slightly up against the Euro today gaining 0.2%.  The pound started brightly this morning before falling back this afternoon with most of the early morning gains caused by Moody's the credit rating agency downgrading Ireland's status to just one from Junk. However the pounds gains were limited as expectation for the European Central Bank to raise interest rates ahead of the UK still keeps pressure on the pound. This is a trend I believe will continue and until we see...