UK Inflation remains sticky at 4% – will this help the pound?

UK inflation is holding steady at 4% according to data released by the Office for National Statistics. Last months inflation data also posted at 4% which shows inflation is remaining sticky in the UK. Markets were expecting a slight uptick again so a flatline is better than expectations for UK mortgage holders. Sterling exchange rates have largely remained buoyant following the release as the prospect of interest rate cuts this quarter has decreased. GBPEUR remains within reach of the...

Could the Pound be influenced by this week’s busy economic calendar?

After a fairly muted start to 2024 for GBP exchange rates, the outlook what which factors could influence the currency moving forward have become clear. The Bank of England, European Central Bank and the Federal Reserve Bank in the US are all expected to begin cutting interest rates later this year. But the BoE differs in that the cuts are expected to begin later this year, and the number of cuts is expected to be slightly less.
GBP EUR Exchange Rate: Weekly Review July 16  

Sterling back above 1.17 against the euro – where will rates go next?

Pound Sterling recovered against the euro yesterday afternoon and climbed back above the key 1.17 threshold. This was preceded by a poor reading of retail sales data from the Eurozone which did not support the value of the single currency. Eurozone retail sales are down 0.8% on a monthly basis and 1.1% on a yearly basis vs expectation of 0.9% and 1% respectively. A struggling retail sector could support the premise for an interest rate cut sooner rather than...
GBP AUD Consolidates with UK Employment Due

GBP exchange rates remain strong as interest rates remain at 15-year high

Last week the Bank of England voted to keep interest rates on hold for the 4th consecutive time. Whilst this was expected in the lead up to the decision, we have seen a change in the voting patterns of the 9-voting members. The rate will remain at 5.25% and the vote was a 6-3 split. Interestingly one member of the BoE’s Monetary Policy Committee voted for a cut so could this be the start of a change of approach...
GBP USD Exchange Rate Rises Sharply Following Fed Rate Hike 

Sterling hangs in the balance ahead of Fed and BoE decisions

Sterling exchange rates hang in the balance ahead of today’s Federal Reserve FOMC meeting and tomorrow’s Bank of England Monetary policy meeting. The pound has been one of the strongest performing currencies of 2024, mostly helped by the prospect of higher for longer interest rates in the UK vs the Eurozone and the US. UK interest rates currently sit at 5.25% and there is an expectation for rates to be cut by 100 basis points by...

Could this week’s economic updates push the Pound higher?

Looking over a 1-month chart for the Pound to Euro exchange rate, the Pound has gradually climbed in a consistent trend against the Euro. There has been little volatility, but the GBP/EUR pair have climbed from 1.1500 up to 1.1725 in the space of 1-month, which is an almost 2% increase. At last week’s European Central Bank (ECB) interest rate decision and statement afterwards ECB President Christine Lagarde opted not to push back against expectations of...

GBPEUR hits 1.17 – will the pound continue to rise?

GBPEUR exchange rates rose to 4-month highs during yesterday’s session, hitting 1.17 on the interbank market. Sterling is trading 0.6% off the 52-week high against the euro, making now an opportune time for sterling sellers. Sterling has remained resilient against the dollar, holding above the key threshold of 1.27. Cable (GBPUSD) rates are 0.7% off the 5-month high. Services & Manufacturing data Purchasing Managers Index (PMI) surveys senior executives within the manufacturing and...

Sterling rises following UK inflation release – will the pound get stronger?

UK inflation data released this morning confirmed a rise in CPI inflation from 3.9% to 4%, causing an immediate rise in pound sterling’s value. The markets were expecting inflation to continue to drop off as it has for much of the last year. Sticky inflation poses a threat to the prospect of interest rates being cut in the UK. The Bank of England have kept interest rates above 5% in attempt to cool down the rise in prices.
GBP EUR Lower After Rishi Sunak Autumn Budget

Will the Pound get stronger against the US Dollar?

The Pound US Dollar exchange rate has been improving since the start of the year getting very close to the 1.28 levels. The Pound has had a good start to the year already against a number of currencies including vs the Euro and the US Dollar. According to recent figures the UK economy grew in November by 0.3% after being negative the previous month. Black Friday sales have clearly helped boost...

Sterling stable ahead of US inflation and UK growth data

Following a positive start to 2024, sterling remains at a stable level against its key counterparts the euro and US dollar. GBPEUR is 1.3% off the 6-month high and 2% higher than the 6-month low. Cable (GBPUSD) rates are 3% lower than the 6-month high but almost 5.5% above the 6-month low. On a 6-monthly basis, now is positive time to be securing euros and dollars from pounds. There is a potential for sterling weakness as we progress into...