Pound to Euro rate continues to fall, making history in the process

Pound Sterling losses continue as cost of living crisis dominates headlines – New Prime...

Sterling exchange rates have continues to drift to kick start a new trading week, as the cost of living crisis dominates headlines across UK media. With today being an important day for UK politics as we see the announcement of the winner in the Conservative party leadership contest, and ultimately who will be the new Prime Minister, they will almost instantaneously have to announce how they plan to combat what appears to be an extremely challenging winter for the majority of households and businesses. It is...
GBP to EUR Forecast: Will Sterling See Further Losses Against the Euro?

Sterling exchange rates continue to slide – How low can the pound go?

Sterling exchange rates have seen further losses against both Euro and Dollar over the course of the trading week, as investors and speculators alike have made it clear there is a lack of confidence in the Pound at present. With the cost of living crisis bearing down on the UK economy and a prolonged recession on the cards we have started to witness a move away from the pound and it appears that it is being treated much more like a riskier currency rather than...
GBP USD Exchange Rate: The Month Ahead September 

GBP USD Exchange Rate: The Month Ahead September 

The pound, which mounted a rally against the dollar during the back end of July, spent the first half of August largely drifting lower.  The pace of its fall ramped up when data sullied the UK economic outlook and declining risk appetite boosted demand for the safe-haven dollar.  The latest consumer prices print, which showed inflation rose into double digits territory, piled pressure on the Bank of England (BoE) to cool prices, intensifying fears of a sharp economic slowdown.  By 23 August, GBP USD slipped to 1.1718,...
GBP USD Exchange Rate Slips Below 1.20

GBP USD Exchange Rate Slips Below 1.20

The pound softened against the dollar on Thursday after Federal Reserve policy meeting minutes buoyed the US currency. GBP USD slid below the 1.20 level for the first time since 26 July. Runaway UK inflation intensified investor worries that higher interest could weaken the economy. The latest inflation print, published on Wednesday, came in above 10%, piling pressure on the Bank of England (BoE) to cool prices and intensifying fears of a sharp economic slowdown. Investors are pricing in a 50 basis point rate hike at...
GBP USD Exchange Rate Slips Below 1.20

GBP USD Exchange Rate Steady Amid 40-Year High Inflation

The pound was little changed on Wednesday following data that showed UK inflation soared to its highest level in more than four decades last month. This has left the Bank of England (BoE) in a catch-22 situation, with its attempts to cool inflation by hiking interest rates increasing the risk of a sharper economic slowdown. Consumer price inflation in the UK rose to a 40-year high of 10.1% in July, according to estimates published by the Office for National Statistics (ONS), above the consensus forecast...
GBP USD Exchange Rate: The Week Ahead August 14th

GBP USD Exchange Rate: The Week Ahead August 14th

GBP USD meandered between the 1.20 and 1.21 ranges last week before US inflation data dealt the dollar a chastening blow, catapulting the pair higher. The cooler-than-expected consumer prices report for July spurred expectations that the US Federal Reserve will become less aggressive when making its next interest rate decision as hopes grow that inflation has peaked. The Fed indicated it wants evidence of several monthly price declines before reining in its policy tightening to tackle inflation currently running at four-decade highs. The pound pared much of...
GBP USD Exchange Rate Slides after GDP Data Shows British Economy Shrank in June 

GBP USD Exchange Rate Slides after GDP Data Shows British Economy Shrank in June 

The pound tumbled against the dollar on Friday after eagerly awaited growth data showed Britain’s economy contracted in June – but by less than feared.  The Office for National Statistics (ONS) said gross domestic product (GDP) dropped by 0.6% in June – the most significant contraction in 17 months but not as steep as the 1.3% fall forecast by economists.  The figures compiled by the ONS also showed the economy contracted by 0.1% between April and June, compared with forecasts for a 0.3% drop. When comparing second-quarter economic...
GBP USD Exchange Rate Edges Higher as Dollar Softens 

GBP USD Exchange Rate Edges Higher as Dollar Softens 

Having jumped against a weakening dollar in afternoon trading on Wednesday, after data showed falling gas prices halted US inflation, the pound made marginal gains the following day.  Developments in the Conservative Party leadership race and plans for organised blackouts in January were influencing sentiment towards the UK currency on Thursday.  Reports that front-runner Liz Truss would give ministers powers to override financial watchdogs, such as the Bank of England (BoE), if she succeeds Boris Johnson as PM were rebuffed by the central bank’s Governor Andrew...
GBP USD Exchange Rate Nudges Higher on Rate Hike Expectations 

GBP USD Exchange Rate Nudges Higher on Rate Hike Expectations 

The pound ticked higher against a slightly weaker dollar, with the UK interest rate outlook back in the spotlight after a Bank of England (BoE) official indicated the need for a further hike.  The central bank’s Deputy Governor Dave Ramsden said it was "more likely than not" that the BoE will have to lift borrowing costs from their current 14-year-high to tame inflation pressures that are becoming entrenched in the economy.  The BoE voted in favour of pushing up interest rates by a large 50 basis...
GBP USD Exchange Rate Slides after GDP Data Shows British Economy Shrank in June 

GBP USD Exchange Rate Nudges Higher Despite Gloomy Economic Outlook

The pound edged above the 1.21 benchmark against the dollar early in the week as investors continued to digest last week's Bank of England (BoE) rate hike and accompanying comments. The central bank’s warning that the UK will be plunged into recession in the fourth quarter and not emerge until 2024 has turned investor focus to Friday’s economic growth figures release. The BoE’s cautionary remarks followed a 50 basis point (bps) interest rate hike to 1.75% – its most significant increase since 1995. Despite being large...