Bank of England surprise the markets

Bank of England keeps interest rates on hold The Bank of England kept interest rates on hold yesterday after 14 consecutive interest rate hikes. On Wednesday morning we saw UK inflation coming out lower than expected. This caused the Pound to fall to its lowest level against the Euro since the end of May. This has created some excellent opportunities for anyone looking to sell Euros to buy Pounds. The members of the Monetary Policy Committee voted 5-4 in favour of keeping interest rates on hold. Therefore, could this be...
GBP EUR Rallies After Bank of England Rise in Interest Rates

Will the Bank of England’s decision strengthen or weaken the pound?

Will the Bank of England’s decision strengthen or weaken the pound? The outcome of today’s Bank of England interest rate decision will strengthen or weaken the pound moving forward. Sterling exchange rates took a big hit yesterday following an unexpected drop in inflation from 6.8% to 6.7%. In the lead up to yesterday, many commentators and economists were expecting inflation to rise with predictions set at 7.1%. Even chancellor Jeremy Hunt warned of another uptick in price rises. The Bank of England have raised interest rates at...

Further Sterling exchange rate volatility expected in another week packed with economic data releases

Last week saw a turbulent week of trading, with GBP-EUR rates dipping to a 1 month low. The low was however short lived, and Sterling managed to claw back some strength back to 1.1660, as the European Central Bank indicated that Interest Rates have peaked. The European Central Bank raised interest rates by 25 basis points on Thursday, to 4% - a record high by the European Central Bank (ECB). This was the bank’s 10th raise in a row. This was seen as a doveish...
GBP EUR Advances Despite Better German Trade 

Will the ECB help or hinder Sterling exchange rates?

Will the ECB help or hinder Sterling? Euro exchange rates hang in the balance ahead of today’s European Central Bank monetary policy meeting. The key decision could help or hinder sterling’s position against several of its counterparts. Sterling exchange rates will react depending on the outcome of their decision. Most affected, would be GBPEUR due to the pairing including the euro, however, cable (GBPUSD) rates could also be affected. EURUSD is the most traded currency pair globally which means significant movements on the rate can impact other...
Pound to Euro rate continues to fall, making history in the process

Pound Sterling Forecast: How to get the Best Pound to Euro Exchange Rate

Pound Sterling Forecast, what we can expect for the pound? Getting the best pound to euro rate is about being prepared and tracking key economic data and information. "Hope", is not usually a good strategy. Relying purely on "luck" and hoping that the market will magically go your way can often lead to disappointment. Just because you cannot totally predict the direction on rates, doesn't mean you should just give up and accept your fate. To help my clients get the best rates, I take the time to...
GBP USD Exchange Rate Plunges to Lowest Since September 2020

Pound loses value as US services data boosts the Dollar

Pound loses value as US services data boosts the Dollar Pound sterling opens softer this morning after losing value against the dollar. The sell-off begun during yesterday afternoons session. Cable (GBPUSD) rates have dropped below the key 1.25 handle which could be a signal of things to come. The pairing is currently tracking close to the 3-month low which represents a real opportunity for dollar sellers. ISM PMI data confirmed an expansion in the US services sector last month. A reading above 50 signals an expansion...

Sterling softer against the euro ahead of key inflation data

Sterling softer against the euro ahead of key inflation data Pound sterling softened against the euro during yesterday’s session, reaching a low of 1.1610 on the interbank which was a two-week low for the pairing. Marginal gains for the euro represented a window of opportunity for euro sellers. GBPEUR reached a new yearly-high last week but has since dropped back by more than a 1%. Exchange rates continue to be driven by current and future interest rate policy. Market expectations are for the Bank of England to...

Sterling on the front foot following UK inflation data

Sterling on the front foot following UK inflation data Sterling is back on the front foot against the euro and dollar following yesterdays release of inflation data. The pound is trading within 0.5% of the 11-month for GBPEUR making it an opportune time for euro buyers. Cable rates (GBPUSD) have risen from the 6-week low seen on Monday and pairing is trading comfortably above the 1.27 handle at the time of writing. Yesterday’s data confirmed core inflation remains sticky coming out at 6.9% vs expectations of...

Will the Bank of England help or hinder pound sterling?

Today’s Bank of England interest rate decision could help or hinder pound sterling’s future value. It is almost certain that the Bank will raise interest rates for the 14th consecutive time at today’s meeting. A pause in rates would cause shock to the market and likely trigger wide-scale sell-off of the pound. Current expectations are for a 25-basis point hike. However, there is a chance that the Bank opt for 50-basis points. This would mean back-to-back 50 basis point hikes causing a 1% raise in...
GBP EUR Dips After Spanish Inflation Jump 

Could the Bank of England surprise the markets again this week?

The Pound has managed to hold onto much of its recent gains against the Euro recently, as it continues to trade towards the top end of its annual range. Last month increasing expectations of further interest rate hikes pushed the Pound to a high of 1.1750, and at the time of writing the GBP/EUR pair are trading within 0.75 cents of this 11-month high. This week, the Bank of England (BoE) is expected to raise interest rates to the highest level in 15-years. The general expectation is...