Red hot week for economic data, as temperatures across the UK plummet

Things have been looking brighter for the pound in recent weeks and the pound finished last week strong, after suffering a near two and a half cent (1.2345 to 1.2106) slide against the greenback (GBP/USD) from Monday to Wednesday. The pound has benefited from an improved ‘risk on’ appetite in recent weeks and responds well to positive news. Cable finished the trading week on the 1.23 handle. The positive news in question relates to recent comments from US Federal reserve chair Jerome Powell’s comments around...

Sterling hits two-month highs against the dollar

Pound Sterling Forecast – Sterling hits two-month highs against the dollar The pound continued it’s positive start to the week during Wednesday’s session rising to a 2-month high against the US dollar and a 3-week high against the euro. £100,000 is buying €3000 and $9000 more vs the low of the last month. If purchasing an overseas property or running a business with currency exposure. The pounds gains have significantly reduced the cost. The last few weeks has been full of negative economic data for the UK....
GBPEUR UK election: Why haven't pound to Euro exchange rates fallen?

Pound hits record low against the US Dollar, and drops significantly against the Euro

Yesterday was a very difficult day for the Pound as financial markets appear to have lost faith in both the Bank of England’s monetary policy and the new cabinet’s mini budget. Last Thursday the new Chancellor of the Exchequer, Kwasi Kwarteng announced his mini-budget outlining plans for a raft of tax cuts. Then over the past weekend he pledged further tax cuts in order to try and reinvigorate the UK’s stalling economy and attempt to counter the increasing inflation rates not seen in decades. His plans...

Why Are Sterling Exchange Rates So Low? Why Is The Pound Dropping?

Sterling exchange rates have taken another huge hit overnight as the trend of weakness for the pound continued straight at the start of the open on the Asian markets last night. The Pound dipped all the way down to the 1.02s against the Dollar and the 1.07s against Euro as investors and speculators rushed to drop the currency and this caused a great deal of weakness. So why are Sterling exchange rates dropping? Since the announcement of the mini-budget and Kwasi Kwarteng's plans to cut taxes we...
GBP EUR Higher After European Central Bank Rates

Pound to Euro rate hits a 1-month high as Euro weakens due to Italian...

The Euro fell another half a percent against the Pound yesterday, after news broke over the weekend that the expected Italian coalition government is no longer looking likely to form. There were expectations that the five star movement and League would form the coalition over the weekend, but the Italian President Sergio Mattarella cancelled talks after the coalition put forward Eurosceptic, Paolo Savona for finance minister. The markets were already weary of the unfolding's in Italy due to the populist and Eurosceptic leanings, along with...

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...