Sterling in a strong position ahead of early May bank holiday
Economic data released at the end of last week showed positive and negative signals for the UK’s economic outlook. UK retail sales are down 3.1% year-on-year and 0.9% month-on-month. The monthly figure is worse than expected with markets expecting a negative reading of 0.5%.
PMI data showed some positive signs but was once again mixed. Services PMI trumped expectations of 52.9 with a reading of 54.9. However, manufacturing PMI was lower at 46.6 vs expectations of 48.5. A reading above 50 signals an expansion within...
Sell in May, Go Away ! Will the pound be weaker next month?
Will the pound weaken in May? Well, on observing the last seven years, we notice the old adage of “sell in May, go away”, ringing true for sterling on six out of those seven occasions. Our FX research teams have been busy analysing the data, to try and give our clients the most relevant facts to support their decision making.
The average move lower we have noted is around 2.4%, from the two-month period start of May to end of June. On a £100,000 transaction,...
Why has the Pound begun to improve against the Euro this week?
Major economic data releases helping the Pound, and causing disruption for other major currencies
This week we have seen the Pound benefit from several economic data releases, surprising the market with more positive than expected readings, as well as some weaker data coming out of the European bloc.
The Purchasing Manager’s Index reading, which is a great indicator of the UK services sector’s economic position, posted above 50 to signal that this sector is now expanding in the latest month, as well as the manufacturing and...
Will the Pound vs the Euro continue to fall this month?
UK Retail Sales show a decline and the impact on GBPEUR rates
The Pound Euro exchange rate has been slowly falling lower each day over the course of the week as the UK economy fails to provide much good news.
UK Retail Sales showed an increase of 0.5% in January after falling the month before according to the Office for National Statistics.
However, sales compared to twelve months ago showed a fall of 5.1%.
With consumers being heavily impacted in the UK by the cost of living crisis...
Sterling softens following fall in UK inflation – where will the pound go next?
Sterling softens following fall in UK inflation – where will the pound go next?
UK inflation data released yesterday morning caused a large scale sell-off of the pound. GBPEUR had climbed to two-week highs prior to the announcement and cable was back trading in the 1.21 handle. However, both pairings are trading more than a cent lower at the open this morning.
Inflation figures revealed a fall in both CPI (Consumer Price Index) and core CPI data. The headline figure fell from 10.5% to 10.1% vs...
Pound Euro rate falls after Bank of England ECB Rate Hikes
Pound Euro Rates fall after UK Interest Rate Decision
The Pound Euro exchange rate fell from its recent monthly highs of above 1.14 into the 1.11 levels shortly after the interest rate announcement made by the Bank of England.
The current rate of UK inflation is at 10.2% but the central bank are expecting interest rates to fall to as low as 5.2% towards the end of 2023.
Although petrol prices at the pumps have started to fall recently, wholesale gas prices still remain relatively high.
This is...
Monetary policy meetings and interest rate hikes – Will the Pound weaken further this...
The week ahead will be a major one for the Pound, Euro and US Dollar will all three respective central banks announcing further developments in their battle to reduce inflation back to target levels, through their monetary policy meetings this week. Monetary policy meetings and decisions on interest rates help us to understand the current health of the economy, which is the main influence on a currency’s value and, any adverse movement away from the expectation within the market, may result in volatile movement.
The...
Pound Euro exchange rates to experience an uncertain period in the weeks ahead
Uncertain period ahead for the Pound Euro exchange rate
The Pound Euro exchange rate has been drifting slowly lower during the course of the week so far as more pressure gets piled on the British economy.
With many strikes having taken place already and with further strikes scheduled over the next few weeks the UK remains in a very uncertain period.
Teachers, nurses, rail strikes to name but a few have all caused the government to make some difficult decisions in order to appease those sectors involved...
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...
