Will the pound rise in September?
Will the next Bank of England hike lift the pound?
The pound could be in for some potentially better fortunes, if we do see the Bank of England raising interest rates next month.
Typically, we would state that a higher interest rate leads to a stronger currency. This is not always the case, but the idea is a higher interest rate makes that currency more attractive to hold.
The pound has been stronger this year owing to a higher interest rate, as it encourages more investment.
However, higher...
Sterling exchange rates climb in the lead up to tomorrows key Inflation data release
The Pound rose earlier this morning after the latest wage growth data was released by the Office of National Statistics (ONS).
The data reported that basic wages within the UK grew at a record pace in Q2 this year, as wages excluding bonuses were 7.8% higher than a year earlier during the same time period.
This is also the largest increase since records begun back in 2001, and it adds to the pressure on the Bank of England to try and bring down increasing inflation levels.
Tomorrow...
Will the latest inflation figures help the Pound get stronger?
Last week was a more volatile one for the Pound as GBPEUR and GBPUSD saw 1 cent swings in their pairings, ending the week at 1.159 and 1.269 respectively. Sterling had been riding the recent highs off the back of their 14th consecutive rate hike in the week prior, and there were indications from the Bank of England that this may not be the end of the hike streak. There is currently an 85% chance of another 25 basis point hike at the meeting...
GBP exchange rates remain steady but could Friday’s GDP data change this?
Now that last week’s busy economic calendar is out of the way, this week feels like more of a typical August week where economic data releases can be quite limited.
The Pound to Euro exchange rate remains around the 1.1600 level, and yesterday there was little market movement throughout the entire day of trading.
The Bank of England’s decision to hike interest rates by 0.25% as widely expected resulted in another drop for the Pound in the 24-hours after the announcement, which is a pattern we’ve...
Bank of England raise Interest rate hikes for the 14th time since December 2021
Last week we saw the Bank of England raise interest rates in the United Kingdom for the fourteenth time in a row. This is another attempt in the long-continued commitment the central bank has taken in the effort to reduce inflation. Inflation levels in the UK are well above target currently sat at 7.9%, 2.4% higher than the European Union and 4.93% higher than the United States. The Bank of England are hoping to end this year with inflation levels at 5%. The current...
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...
The pound rises but this is not necessarily because of sterling strength !
Pound Sterling Forecast remains Mixed
Yesterday saw a raft of good news pieces which helped to bolster the pound. Yesterday the IMF upgraded its global growth forecasts 2.8% to 3.0%.
This has benefited sterling as typically the UK does well when the global outlook is more positive.
The IMF expects the UK economy to grow by 0.4pc this year, this is a big upgrade compared with the 0.3pc contraction it predicted in April.
As well as the IMF upgrade, EY has upgraded its UK economic growth forecast for...
Could UK inflation data be the most important data release this week?
Tomorrow morning UK inflation rates will be released in the early hours in what appears to be the most important economic release this week, at least for the UK markets and the Pound.
The inflation figures are measured in the form of CPI (Consumer Price Index) and as this release can impact monetary policy adopted by the Bank of England, the release carries the potential to influence the currency markets.
The expectation is for an annualised CPI figure of 8.2% to be released for June. This...
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...
Will the expectation of higher interest rates push GBP exchange rates even higher?
The Pound was the strongest performing currency in the first half of 2023, after gaining by almost 5% against the US Dollar and by almost 3% against the Euro.
Although Sterling exchange rates dropped yesterday as the second half of the year began, it’s been a very strong first half of the year for the Pound as the expectation of higher interest rates continues to climb.
After dropping to almost parity in the wake of former Prime Minister (Liz Truss) haphazard budget last September, the Pound...
