GBP AUD Consolidates with UK Employment Due

GBP exchange rates remain strong as interest rates remain at 15-year high

Last week the Bank of England voted to keep interest rates on hold for the 4th consecutive time. Whilst this was expected in the lead up to the decision, we have seen a change in the voting patterns of the 9-voting members. The rate will remain at 5.25% and the vote was a 6-3 split. Interestingly one member of the BoE’s Monetary Policy Committee voted for a cut so could this be the start of a change of approach...
GBP USD Exchange Rate Plunges to Lowest Since September 2020

Pound Sterling Forecast – Bank of England Decision today 

How will the pound react today? The Bank of England hold their latest interest rate decision at midday today, 12pm UK time. No change in interest rate policy is expected, but such events do have the power to move markets and are worth being aware if considering any sterling trades in the coming days, weeks and months. Sterling has recently been trading at strong levels against many currencies including the Euro, Australian dollar, New Zealand dollar,...
GBP USD Exchange Rate Rises Sharply Following Fed Rate Hike 

Sterling hangs in the balance ahead of Fed and BoE decisions

Sterling exchange rates hang in the balance ahead of today’s Federal Reserve FOMC meeting and tomorrow’s Bank of England Monetary policy meeting. The pound has been one of the strongest performing currencies of 2024, mostly helped by the prospect of higher for longer interest rates in the UK vs the Eurozone and the US. UK interest rates currently sit at 5.25% and there is an expectation for rates to be cut by 100 basis points by...

Could this week’s economic updates push the Pound higher?

Looking over a 1-month chart for the Pound to Euro exchange rate, the Pound has gradually climbed in a consistent trend against the Euro. There has been little volatility, but the GBP/EUR pair have climbed from 1.1500 up to 1.1725 in the space of 1-month, which is an almost 2% increase. At last week’s European Central Bank (ECB) interest rate decision and statement afterwards ECB President Christine Lagarde opted not to push back against expectations of...

Will GBP exchange rates remain strong despite recession fears?

Last week saw the Pound to Euro break above the 1.1650 handle for the first time this year, after remaining rangebound between 1.1600 to 1.1650 since the start of 2024. The GBP/EUR pair have begun the week above 1.1650 even if only just, so the trend for the pair is gently climbing despite there being concerns for the UK economy falling into recession. Retail Sales figures for December were released last week and came out below...
GBP EUR Exchange Rate: Weekly Review July 16  

When will the Bank of England begin cutting interest rates, and how could this...

The Pound traded within a very tight range last week, as currency markets have begun the year in quite a muted fashion. There was a range of just 115 pips for the GBP to EUR exchange rate, and the EUR to USD exchange rate traded within a range of just 80 pips. The EUR to USD exchange rate is the world’s most traded currency pair so this demonstrates how quiet markets were last week. Throughout much...

Could the Pound fall in value if the UK officially slips into recession?

Despite being a quiet week for economic data releases, on Friday there is arguably one of the most important data releases for the UK economy so far in 2024 as GDP figures for November will be released. In the third quarter of 2023 the UK officially contracted after revised figures showed a slight drop in economic output of -0.1% across the 3-month period of July, August and September. For the UK to into an official recession...

Could a UK recession apply further downward pressure on the Pound?

Last week the Bank of England voted to keep interest rates on hold at 5.25% as expected by the markets. Financial analysts now believe that the Bank of England has completed its current cycle of interest rate hikes with the attention now turning to how long the BoE will keep interest rates at the current elevated levels. The Pound remained quite flat against the Euro as a result of the decision, but due to some US Dollar weakness the Pound to US Dollar rate actually climbed...

Will comments from the Bank of England this week help support the Pound?

Another week without many economic updates out of the UK is on the cards this week, with the main focus being the Bank of England’s interest rate decision on Thursday. The Pound suffered last week, losing value against both the Euro and the US Dollar as the lack of data released from the UK left the Pound vulnerable. Aside from the USD and Euro strengthening against the Pound, the Pound is also vulnerable at the moment due to global risk sentiment declining due to the...
GBP EUR Exchange Rate: Week in Review October 9th

Pound Sterling Forecast for October

Are we more likely to see the pound rise or fall in October? Expectations for the pound see a number of different forecasts which may well influence any decision to buy or sell sterling. The currency markets are not totally predictable. However, by assessing previous behaviour and past performance, it is possible to make predictions. By looking at upcoming events, we can make some judgment calls on what might happen in the future, based on how the FX markets have responded in the past. Pound to Euro forecast...