Will the pound get stronger? Growth figures show a surprise positive reading on Friday

The UK looks set to avoid a recession in 2022 as GDP data was announced on Friday. The UK economy grew by 0.1% in November, with the services sector providing a welcome boost when a 0.2% expansion was announced. This came as a surprise to many forecasters, with a 0.3% GDP contraction the market expectation. Despite this, the pound failed to make any significant gains against the Euro, finishing the week trading at 1.1280 – a near 0.75% decrease since markets opened on Monday. The Pound...

Why is the Pound dropping against the Euro?

Pound Euro close to 4 month lows The Pound Euro exchange rate is now close to its lowest level since September of last year. The Pound has been experiencing a difficult period vs the Euro for weeks since the start of December. The sudden turn of fortune for Sterling could be attributed to what happened in early December. The Bank of England hiked interest rates once again but the European Central Bank countered that by also hiking interest rates for the first time in months. This could be taken...
GBPEUR Sees a Sharp Rebound with ECB Stimulus Plans

Pound hits lowest rate since ‘mini-budget’

Yesterday saw the pound weaken further against the euro, falling to the lowest GBPEUR rate since the now infamous Liz Truss/Kwasi Kwarteng ‘mini-budget’. GBPEUR was trading at 1.1257 during the low of yesterday’s session. The downward pressure on the pound begun a month ago now following the European Central Banks (ECB) decision to hike interest rates by 50 basis-points. The pound has lost 3.5% against the euro in the last 4 weeks. A transfer of £100,000 is currently buying €4100 less vs a month ago. In...
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...

Strong start to the week for Pound Sterling – What could this week bring...

We have seen a strong start to the trading week for the Pound against every major currency, as Sterling exchange rates have bounced back from losses towards the end of last week. The Pound did drop off at the back end of the week due to a fairly dovish tone set out by the Bank of England at the BOE interest rate decision, where the markets were informed not to expect as greater hike in interest rates in the coming months as had been originally...
GBP EUR Exchange Rate: Weekly Review July 16  

Will Incoming Prime Minister Sunak bring stability for the Pound?

The Pound begun the week in a strong fashion off the back of news that former Prime Minister Boris Johnson opted to pull out of the Conservative leadership contest. Britain’s former Chancellor of the Exchequer, Rishi Sunak is now confirmed to step into the role of Prime Minister making him the youngest Prime Minister in around 200 years. Perhaps the uncertainty being lifted as to who would become Prime Minister was behind the boost in the Pounds value yesterday, although since then we have seen...

Will the government perform a U-Turn? Impact on GBPEUR & GBPUSD Rates

Will a u-turn be coming for the current government? Three weeks ago the Chancellor Kwasi Kwarteng announced his mini-budget. This caused a huge sell off for Sterling exchange rates. It also caused an issue for bonds and UK mortgages. However, since then the Pound Euro and Pound US Dollar has also improved. Indeed, Sterling Euro rates are currently close to a 2 month high creating some excellent opportunities to buy Euros with Pounds. The Bank of England recently stepped in and spent a huge amount of money to...

Pound Sterling Weakness – Why Is The Pound Dropping So Much?

Sterling exchange rates have taken a huge hit over the course of the days trading, as the new chancellor Kwasi Kwateng's mini-budget appears to have knocked the pound totally out of fashion. The pound has lost over 350bps against the Dollar sitting in the 1.08 territory, whilst dropping to 1.12 against the Euro and hitting the lowest level against the Swiss Franc since 1974 sitting in the 1.06s. There is now talk of an intervention and whether HMT will make an attempt late on Sunday night...
 GBP EUR Higher After Inflation Hits Another High 

Bank of England and mini budget – The impact on Sterling exchange rates

The Bank of England increased interest rates for the 7th time in a row by 0.5% to take the base rate up to 2.25%, which was the biggest single rate hike in years. This caused the Pound to fall briefly against both the Euro and US Dollar as there were some predictions that the Bank of England may have raised rates by as much as 0.75%. As this didn’t happen the Pound plunged almost immediately after the announcement but managed to reverse some of...
GBP EUR Could Head Lower After Growth Revisions

Three Key Events in a Vital 72 hours for GBPEUR and GBPUSD Exchange Rates

The beginning of this week in the UK was very sombre with Her Majesty’s funeral and a UK Bank Holiday. This meant UK markets were shut, and ensured a fairly sleepy start to the week from a currency perspective, with sterling still nestling in the doldrums following the poor Retail Sales data from last week. The rest of this week looks far from calm however, with three key events that could trigger market movements for the pound, US dollar, Euro and many other currencies. The...