Global Stocks fall leading to movement on Sterling exchange rates (Tom Holian)
Global stock indices have all crashed overnight since owing to the better than expected jobs report last Friday.
As the data was so strong this is likely to lead to the US Federal Reserve increasing interest rates sooner than may expected and this could put an end to the cheap money that has been available for the last few years. Indeed, monetary policy such as Quantitative Easing which has taken place in the UK and the Eurozone has led to stock markets going in an...
GBP Exchange Rates in Politically Driven Week
The pound is set for a hugely volatile week as the House of Commons Brexit withdrawal vote approaches next Tuesday. The pressure is now very much on Prime Minister Theresa May who will be meeting Brexit ministers today to discuss the final arrangements for a backstop plan. This proposal has been very controversial within cabinet with a public clash between Brexit secretary David Davis and Theresa May. If no agreement can be reached today then this could prove problematic for sterling exchange rates with...
Will the GBP/EUR pair fall back to their 2016 lows? (Joseph Wright)
Further Brexit jitters have caused the GBP to EUR exchange rate to plummet over the past couple of trading sessions.
In an interview over the weekend the UK Prime Minister, Theresa May commented that her primary focus is likely to be control over immigration as opposed to retaining access to the single market. This suggests a bias towards a 'Hard Brexit' as opposed to a softer approach and the currency markets have reacted to this news with the GBPEUR pair breaking below 1.15 and approaching...
GBP/EUR Rates Move Back Through 1.21 (Matthew Vassallo)
GBP/EUR exchange rates continue to hold firm above 1.20 on the exchange , despite a negative market reaction to last week’s UK Retail Sales figures. Figures came in worse than expected and Sterling dropped by a couple of cents against the single currency. It did seem as if the EUR may build some momentum into this week but once again the Pound found further market support, moving back through 1.21. Anyone with a GBP/EUR requirement should be keeping a close eye on the release...
Sterling Falters Ahead of BoE Interest Rate Decision (Matthew Vassallo)
GBP/EUR rates dropped during Tuesday’s trading following poor Manufacturing figures, which caused the Pound’s value to plummet. Sterling dropped by over a cent against its EUR counterpart, with the official reading of 54.3 coming in under the markets expected result.
Sterling continues to find life tough going and every time it takes a step forward it seems to take two back and with investor confidence in the UK remaining low, this trend is likely to continue in the short-term.
We have further PMI data out today...
GBP/EUR dropped 1% vs the Euro during today’s trading session, downtrend likely to continue...
It's hard to remain optimistic regarding Sterling's value moving forward at the moment, as despite a couple of days with positive economic news releases for the UK economy, the Pound is still on the decline.
Yesterday GDP figures were released for the second quarter of this year, and the figure actually came out above analysts expectations at 0.6% growth, although currency markets remained relatively unchanged.
Then earlier today Nationwide released UK House Price figures which demonstrated growth in the UK property market. According to their figures...
Cypriot Bailout Costs Rise as EUR Uncertainty Continues (Matthew Vassallo)
Reports surfaced during Thursdays trading that indicated the cost of a Cypriot bailout had risen to 23 billion. This now means that Cyprus will have to raise 13 billion EUR, rather than the original 7.5 billion that had been widely reported.
There is now a growing fear that Cyprus will not be able to raise these funds, which would cast serious doubts over its long-term future in the Eurozone. Whilst Cyprus is often seen as a peripheral nation, we have seen previously with Greece and Ireland that even the so called smaller...
Will the pound to Euro rate rise above 1.15?
The pound to Euro rate had been expected to keep rising in the face of the expected improvements from the market in terms of higher interest rates and also possibly the improved outlook on Brexit but mostly we would be expecting the pound to struggle to rise again to hit the 1.15 mark. The most important factor driving the pound has of course been the Brexit and also the prospect of higher interest rates.
Much of this news does appear to be largely priced into...
Are we Witnessing the Calm Before the Storm? (Matthew Vassallo)
Thursday has seen a relatively flat day for the GBP/EUR currency pair, as the markets seem to be waiting for the next significant move either in Europe or the UK. The pound has struggled to make any inroads today, despite a drop in UK unemployment and today's announcement that retail sale figures were up in September. Both of these would usually be viewed as a positive for Sterling but whilst our growth forecasts remain weak, it is difficult for the Pound to make any significant moves back...
This week ahead – Are 2023’s Sterling high’s set to continue?
For the first time in 2023, we saw the Pound breach the 1.16 ceiling against the euro last week. On the 1st of June 2023 we saw a new a 2023 high reached for GBPEUR of 1.1667 with sterling managing to maintain a mid-market level of above 1.16 for the remainder of the week. The Pound saw similar rises against several currencies, most notably the Australian and New Zealand Dollar, respectively climbing to both 2- and 3-year highs.
Analysts have raised their bets on further...