Pound Sterling Forecast – Has the Market Overestimated GBP?

Pound Sterling Forecast – Has the Market Overestimated GBP?

Where some had been arguing that economic data was taking less importance, I think one could argue this week has seen a bit of a turning point with the economic data once again driving the pound sterling forecast to a greater extent. This morning, we saw the latest Unemployment data with a headline figure of 650,000 people more out of work in June compared to March. Despite the government furlough program earlier this year there remains a huge challenge for the UK to retain employment...
Pound Sterling Forecast – How will GBP perform in August?

Pound to Euro Forecast – Crucial Week for Brexit Negotiations

The pound to euro exchange rate faces added pressure this week as Brexit discussions continue in the third week of 'intensive' negotiations between the UK and EU, now being carried out face to face. Boris Johnson last week showed some optimism that he hoped a deal could be reached in July. At the same time however German Chancellor Angela Merkel has started preparing for a no deal Brexit after the British Prime Minister said he was ready to walk away from the negotiations. Michael...
Pound to Euro Rate Remains Vulnerable

Pound Sterling Forecast – Will the Pound Continue to Rise?

The end of last week saw the pound sterling forecast rising with fresh three-week highs seen for the pound to euro exchange rate, plus for the pound to US dollar exchange rate. GBPEUR interbank rates rose to a fresh high of 1.1185, whilst GBPUSD interbank rates reached 1.2658. The reasons for this spike were mixed with a continuation of the recent optimism for the pound helping to fuel pound strength. Two of the key reasons that can be considered would be the positivity from the...
Pound to Euro Exchange Rate Inches Higher

Pound to Euro Exchange Rate Inches Higher

The pound has recovered further this week with positive movement against both the euro and the US dollar, and taking rates to a twenty-day high against these currencies. GBP to EUR currently sits at 1.1170 and GBPUSD is at 1.2580. The UK Chancellor Rishi Sunak announced substantial measures on Wednesday to promote economic activity including a major change to the stamp duty threshold at which tax is paid on property sales as well as initiatives to try and get customers back into restaurants and on...
Pound Forecast: Will GBP Keep Climbing Next Week?

Pound Sterling Rates Rally on Month End Flows

Pound to euro and pound to dollar rallied almost 0.5 percent during yesterday’s trading as month-end flows caused a rebalancing in the market. Fund managers typically look to rebalance their books at month-end, and this often leads to excessive movements in currency pairs. Pound to euro surged above 1.10 and pound to dollar above 1.23 on the interbank exchange, and both pairs have consolidated above those levels this morning. Sterling has been sold quite heavily over the past couple of weeks and yesterday saw some...
Pound to Euro Exchange Rate Down More Than 1% at Week End

Pound Sterling Forecast: will COVID-19 Keep GBP Weak?

The pound has finished another week testing lower points and on the back foot, as a continued range of uncertainties weigh on sentiment toward the pound sterling forecast. First and foremost, the lack of clarity surrounding Brexit and an underlying viewpoint that no-deal is a real possibility. And further, a continued deterioration in the global economic outlook as new cases and deaths at the hands of the Coronavirus sees spikes in the numbers, causing global confidence to falter. Sterling has been repeatedly labelled a ‘risky’...
Pound to Euro Exchange Rate Inches Higher

Pound Sterling Forecast – GBP to Weaken in the Coming Weeks?

Last week looked set to be tough week for the pound sterling forecast last week for some time, and so it came to pass with the pound touching a fresh near three month low on GBPEUR, a three week low on GBPUSD, and a nine month low on GBPAUD, all on their interbank rates. The announcement of further Quantitative Easing (QE) and consideration of possible interest rates cuts into negative territory by the Bank of England, all helped to fuel a decline in the attractiveness...
Pound to Euro: Bank of England Keeps Interest Rates on Hold

Pound to Euro: Bank of England Keeps Interest Rates on Hold

Yesterday’s Bank of England (BoE) interest rate was eagerly anticipated by investors yesterday as there had been rumours circulating of a potential cut into negative territory in order to encourage spending to combat the economic damage caused by COVID-19. The pound to euro and pound to US dollar rate suffered significant losses throughout the day as a result. Sterling fell in value against the majority of major currencies in the build up to the announcement, recovered after the cut did not take place and...
Pound to Euro: Bank of England Meeting and the EU summit

Pound to Euro: Bank of England Meeting and the EU summit

Today is another Super Thursday with potential volatility for the pound with two main events – The Bank of England Meeting and the EU summit. The Bank of England are widely expected to increase the level of quantitative easing when the central banks’ policymakers meet at lunch time today. Those with pressing requirements would be wise to pay close attention as a strong market reaction could be seen on the back of any new developments. The general forecast is for further stimulus of £100...
Pound to Euro: Rocky Week for EUR as Eurozone GDP Crash Expected

Pound to Euro: Will the BoE Cut Interest Rates This Week?

The Bank of England are due to meet this week and all eyes will be on the decision whether to see if they will cut interest rates or not. The current interest rate in place is at just 0.15% which is the lowest in history. Rumours have been increasing in recent weeks that the central bank may be preparing to cut interest rates in an attempt to stimulate the British economy. UK Gross Domestic Product (GDP) fell by over 20% during the pandemic and the...