Euro weakens as Italian Government fails to form – How may this impact Euro...

The on-going political crisis in Europe has now deepened as news hit the wires over the weekend that the Five star movement and League parties had failed to come to an agreement and form a Government for Italy, heightening political instability in Italy and leading to Euro weakness. This may now pave the way for fresh elections in Italy and will more than likely lead to another long period of uncertainty not only for Italian politics but also for the Eurozone as a whole. There are...
GBP EUR Higher After French Economy Shrinks

Has GBP/EUR already hit its 2018 high, and what factors could drive its value...

The Pound to Euro exchange rate is currently trading around the 1.14 mark, after seeing a slight boost yesterday off the back of some positive data. After beginning yesterday's trading session closer to the 1.13 mark the Pound was boosted when the Office of National Statistics (ONS) announced that UK unemployment sits at the record low of 4.2%, and that wage growth in the UK has outpaced the rate of inflation for the first time in a year. Despite this positive data the Pound to Euro...
GBP EUR Set for a Key ECB Rate Meeting 

GBP/EUR hits 1.15

Draghi hints at prolonged QE Today at the European Central Bank (ECB) monetary policy meeting Mario Draghi the head of the ECB has indicated that Quantitative Easing (QE) could well continue into 2019 despite earlier hints that it would be ending this year. QE is pumping money into an economy in order to stimulate growth, current monthly increments are €30bn, if there was to be a cut you would expect the Euro to strengthen significantly. News that  QE could continue has caused GBP/EUR to move...
GBP EUR Slumps with Lower GDP Print

GBP/EUR – When shall I move? (Daniel Johnson)

Why will GBP/EUR not breach 1.15 and remain above 1.15? Sterling has made significant improvements against the majority of major currencies of late. Breaking resistance points against both the Australian Dollar and the US Dollar, 1.80 and 1.40 respectively. Against the Euro however it only breached the key resistance point of 1.15 for a very short period. 1.15 has been the absolute peak of the market, this level only being breached on a few occasions and every time it quickly retracts. I have been saying for...
GBP/EUR Exchange Rate: ‘No Deal’ Brexit Threat Set to Tumble Pound Sterling

Sterling Euro close to the best rate this year – What will tomorrow bring?

GBP/EUR exchange rates are now close to the best levels we have seen so far in 2017. This is due to a number of positive economic and political data releases so far this week and we still have more to come too. On Monday we had news that the EU and U.K had potentially come up with an agreement on a transition period which was seen as positive by the markets. Yesterday we had inflation data out for the U.K and this morning we had news that...

Pound Euro rates hit 2 week high after Eurozone inflation data (Tom Holian)

The Pound has as of this afternoon hit the best rate to buy Euros all month following the release of lower than expected Eurozone inflation data published early this morning. Inflation fell to 1.1% year on year compared to the expected 1.2% and this has caused the Euro to weaken against both the Pound and the US Dollar. Inflation has been a very hot topic for central banks recently and the European Central Bank in particular. Earlier this month the ECB suggested that it would be...
GBP EUR Exchange Rate: Weekly Review July 16  

Pound Euro rates hit 2 week high after Eurozone inflation data

The Pound has as of this afternoon hit the best rate to buy Euros all month following the release of lower than expected Eurozone inflation data published early this morning. Inflation fell to 1.1% year on year compared to the expected 1.2% and this has caused the Euro to weaken against both the Pound and the US Dollar. Inflation has been a very hot topic for central banks recently and the European Central Bank in particular. Earlier this month the ECB suggested that it would be...
Pound to Dollar Rate Drops to One-month Low

GBP/EUR exchange rates still range bound – Data tomorrow to impact Euro exchange rates

So far this week we have still seen GBP/EUR exchange rates remain in the same range of 1.12 - 1.13 with no major threat of breaking out. Tomorrow we have a number of releases that do have the potential to change that, all from the Eurozone. European Central Bank president Mario Draghi is due to speak tomorrow morning at 08:00am and ECB member Praet is due to follow up with a speech at 08:45am. Any comments from either member that hint towards any fuiscal changes in...

Will the Spring statement cause market volatility? (Daniel Johnson)

Will there be any surprises from Hammond? Philip Hammond, UK Chancellor of the Exchequer is due to deliver the spring statement today. It is expected to be a no frills affair with no big surprises that could rock the markets. I tend to agree with this and I do not expected any breaking changes. It will commence around 12.30pm and is due to last around 20 minutes. Hammond has stated  that no other major economy has two major fiscal set-piece events a year and “neither should we”. He...

The French cause unrest in Brexit Talks (Daniel Johnson)

Concerns over UK Financial Sector could weigh on Sterling The French are making things difficult for the UK in Brexit talks. French Economy Minister, Bruno Le Maire has stated there is very little chance of Britain securing a free trade deal for the financial services that would provide the level of access the UK seeks. Le Maire said the UK would have to use a legal mechanism known as equivalence. Equivalence allows countries outside the EU limited access to the single market, controlled by Brussels,...