GBP EUR Higher Despite Dip in Inflation Figures

UK Inflation Rises Once Again ! Will the Pound Rise or Fall on the...

UK Inflation has risen to 11.1%, which is a 41 - year high. The pound is weaker against many currencies on this news, as the damage of rising prices to the economy is considered. Inflation has been a real problem for not just the UK, but also the global economy as central banks are forced to raise and adjust interest rates to combat the rise in prices of goods and services in the respective economies. Sterling might typically be stronger on the back of expectations that...
GBP EUR Exchange Rate: The Week Ahead August 15th

Important week for Sterling exchange rates with economic data and the Autumn statement due...

We have a really important week ahead for Sterling exchange rates, with a number of key economic data releases due over the course of the trading week, and the delayed Autumn Statement to be delivered on Thursday. There are still concerns over the outlook for the U.K economy, so economic data is being watched closely by investors, and we have some key releases over the next few days which could cause the pound to be particularly volatile. Tomorrow morning we have unemployment data, expectations are for...
Pound to Euro Starts the Week off Steady

Will the pound weaken again?

Sterling exchange rates hang in the balance once again following a day of poor performance in yesterdays session. The pound dropped close to monthly lows against euro while also losing value against the US dollar and a basket of other currencies. Sterling has opened this morning on a more positive footing. The announcement that cryptocurrency giant Binance would not rescue their competitor FTX triggered a significant sell-off in the crypto markets. A number of asset funds are invested in the crypto sphere meaning a sell-off...
GBP EUR Soars Again After UK Employment Boost

How will the Autumn Statement influence the pound?

The Autumn Statement is scheduled for 17th November, and will see Jeremy Hunt, the Chancellor outline fiscal policy for the new Rishi Sunak administration. The pound can be very sensitive to changes in government policy on tax and spending, particularly given the UK's current precarious financial position. We might not expect quite the same fireworks as saw following the last fiscal event in September and early October, with Kwasi Kwarteng and Liz Truss, but that episode highlights the potential volatility we can see from changes...
Pound to Dollar Rate Drops to One-month Low

Will the Pound Rise again after Bank of England Predicts Prolonged Recession and Lower...

The pound has been lower following the Bank of England announcement to raise interest rates by 75 basis points. This is actually counter intuitive, since typically, a rise in interest rates will strengthen the currency concerned. The reason sterling has dipped, is that this record 75 basic points rise was actually predicted to take place, and therefore the market had 'priced' it into their calculations and assessment of the market. Expectations ahead for the pound are now lower, with the Bank of England less likely to...
GBP EUR Drops After Bank of England Recession Warnings 

BoE decision looms – where will the pound go next?

The Bank of England are set to announce their latest decision on interest rate policy at midday today. Inflation has become embedded in the UK economy and the bank are tasked at keeping inflation below 2%. The current rate of inflation is over 10%. Interest rate policy is a key tool in managing inflation. A central bank will raise interest rates in an attempt to cool the economy down and bring inflation under control. The bank has raised interest rates at the last 8 meetings. Today...

Pound Sterling Forecast – Sterling starts the week on the front foot

Sterling exchange rates have started the week off fairly positively against most major currencies, most notably continuing the strong finish to last week against the Euro, with GBP/EUR now sat above 1.1650. The reason this pairing in particular has moved in Sterling's favour more than others is down to the ECB (European Central Bank) interest rate decision and press conference delivered by Christine Lagarde on Thursday. The ECB did raise interest rates as expected, however there was a slightly dovish tone around this hike, there were...
GBP AUD Slumps After UK Cabinet Resignations 

Pound Sterling rises as Sunak expected to be third Prime Minister in a matter...

The pound has started off the week on the front foot against all major currencies, following another weekend of political twists and turns for the UK. As we headed towards the end of an eventful week, news broke that ex Prime Minister Boris Johnson was heading back from a Caribbean holiday to have a crack at  regaining his position at number 10, something that seemed a million miles away only a few weeks ago. As most readers will know, the UK is full of surprises at...
GBP USD Exchange Rate Falls to Two-Year Low Amid Political Uncertainty 

Will Liz Truss lead the Tories into the next election and how will this...

Despite being appointed as Prime Minister just over a month ago on the 6th of September 2022, Liz Truss is already coming under pressure and there is speculation regarding her remaining in power already. The Pound has traded in a more speculative fashion over the past month than it has done for years after a disastrous mini budget which sent shockwaves throughout financial markets, and saw the Pound trade against the lowest level against the US Dollar in recent history. Truss appointed Kwasi Kwarteng as Chancellor...
Pound to Dollar Rate Pushed Higher by Falling Covid Cases and Weak Dollar

Will the pound strengthen in the future? Don’t bet against the Bank of England!

The pound has been trading lower in the last 24 hours, as markets become fearful that the Bank of England will withdraw it's market interventions. The Bank of England has been ripping up the rule book once again with less than standard procedures, with the emergency bond-buying program. Expectations over just what the Bank of England will do next have seen the pound rising and falling, as the market tries to second guess what happens next. Let us rewind two weeks, to the crash on the...