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...
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...
Will the ECB interest rate decision halt sterling’s rise?
The ECB (European Central Bank) have their interest rate decision later today. In recent days sterling exchange rates have once again risen close to yearly highs. GBPEUR and GBPUSD are trading within range of 11- and 15-month highs respectively.
However, Eurozone inflation is still a lot higher than the 2% target set by the bank. Many are expecting another interest rate rise during today’s meeting. Markets are expecting a 25-basis point hike which could lend support to the value of the euro against the dollar...
Sterling drops against the Euro and Dollar following inflation reading
Sterling has dropped in value against the euro and dollar following yesterday’s release of UK inflation data. Inflation has dropped to 7.9% which is lower than the expectation of 8.2% and the lowest reading for more than a year.
GBPEUR is trading more than 2% lower than the highs seen in the last couple of weeks. A transfer of €200,000 is buying £3400 more.
The unexpected drop off has shifted expectations on what the Bank of England will do next regarding interest rates. UK interest rates...
GBPUSD rates hit 15 month high whilst GBPEUR rates hit 11 month high
Pound hits recent highs against both the Euro and US Dollar
The Pound Euro exchange rate has continued to challenge 11 month highs and has also improved against the US Dollar.
The US Dollar has started to weaken recently against a number of major currencies as inflation appears to be slowing down in the world's leading economy.
The US Federal Reserve was one of the first central bank's to rapidly increase interest rates and their policy appears to have now worked.
The policy of hiking interest rates is...
UK growth lower as Sterling hits 15-month highs against the Dollar!
Data released this morning confirmed UK GDP fell by 0.1% last month. Despite this, sterling has risen to a 15-month high against the dollar. Cable (GBPUSD) rates open this morning above the key 1.30 threshold. GBPEUR opens slightly softer following the growth data but is still within range of the 11-month high reached earlier this week.
Dollar rates have taken a big hit over the last 24 hours. Yesterday, US CPI (inflation) confirmed a drop in price growth to 4.8%, lower than expectations of 5%....
Record UK wage growth pushes the Pound higher, could the Pound continue to climb?
The Pound is in the financial headlines today after reaching a 15-month high against the US Dollar this morning, after some stronger than expected wage growth data has given the Pound a boost.
The Pound to US Dollar exchange rate, known as cable within the currency markets has hit a high of 1.2913 this morning, which is the highest level since April the 25th last year. The Pound has also broken back above 1.1700 against the Euro which is within 0.5 cents from the 11-month...
Pound finishes the week on a strong rally against Dollar and Euro, important week...
The pound again finished the week on the front foot against the Euro, with the highest trading level on Friday (1.1727) just over 10 pips away from the recent 10-month high (1.1738) set by the pair. Arguably the biggest driver of recent Sterling strength is the persistent interest rate hike/potential coming out from the Bank of England (BOE).
The interest rate hikes create an advantageous opportunity for overseas investors to hold large quantities of Sterling and benefit from the improved returns it offers compared to...
Sterling back above 1.17 against the euro!
Sterling back above 1.17 against the euro
Pound sterling opens this morning’s session back above 1.17 against the euro. 1.17 is a key threshold for the pairing and has only been breached on a couple of other occasions this year. GBPEUR is therefore trading within range of the highest levels seen since August 2022.
A transfer of £200,000 is buying €12000 more vs the lowest level of 2023. This presents a real opportunity for euro buyers.
Forecast data collated by Lumon from circa 50 banks and financial...