Euro Trades Below $1.08, Triggering Options Markets to Flash Warnings

Important day for GBP/EUR exchange rates – U.K Unemployment and European growth figures the...

Today will be important for GBP/EUR exchange rates as we have the release of some key data for both the U.K and Europe which will no doubt have an impact on GBP/EUR exchange rates. First and foremost we haver U.K unemployment and average earnings figures which will be focussed on by investors, speculators and the Bank of England as economic data at present is extremely important for where we may head next with interest rates. A drop off in economic data for the U.K has recently...
GBP EUR Higher Ahead of PMI Business Activity

Sterling Weaker Ahead of Local Elections

UK Prime Minister Theresa May held her Brexit cabinet meeting yesterday afternoon which could offer further direction for the Brexit negotiations and hence the pound. The issue of the day is whether Britain should remain part of the customs union with the EU. Brexit negotiator Oliver Robbins is trying to steer the government towards a customs partnership that would keep some of the benefits of the single market although members of the cabinet are unlikely to vote in favour of this option. Overnight there has...
GBPEUR Lower as Nerves Return Above 1.1800

GBP/EUR stuck at pivotal point of 1.15 – Will rates break above or...

Sterling is currently sat around the 1.15 mark against the Euro and appears to be fairly range bound as we head towards the end of the trading week. Yesterday saw the most volatility for the pairing that we have seen this week following the European Central Bank interest rate decision and press conference, this led to a little Euro weakness and Sterling moving back up through 1.15. This rise was short lived however, as profit taking knocked the pound back below 1.15 and now we...
GBPEUR Awaits ECB, UK Prepares City Finance Review

GBP/EUR hits 1.15

Draghi hints at prolonged QE Today at the European Central Bank (ECB) monetary policy meeting Mario Draghi the head of the ECB has indicated that Quantitative Easing (QE) could well continue into 2019 despite earlier hints that it would be ending this year. QE is pumping money into an economy in order to stimulate growth, current monthly increments are €30bn, if there was to be a cut you would expect the Euro to strengthen significantly. News that  QE could continue has caused GBP/EUR to move...
ECB interest rates and Brexit update

GBP EUR Moves Higher after Weaker EU Manufacturing Data

The pound remains close to some of the highest levels we have seen against the Euro in the last months creating a good opportunity for those clients looking to buy Euros. UK politics is still going to the big driver for sterling exchange rates in these coming weeks and months with the main topic of Brexit dictating the direction of travel. The pound has been boosted considerably against the Euro now that the second round of the Brexit negotiations have been concluded which covers...
GBPEUR Forecast – Internal Market Bill Drives GBP Lower

Is the trend of a strong April for the Pound about to end?

The seasonal trend of the Pound gaining throughout the month of April looks set to end this month, which is coincidentally the 13th month unlikely when the Pound is compared with the US Dollar. The Pound tends to perform well against most major currency pairs including the Euro during April, with the trend being attributed to the new tax year and a lot of dividend payments being made around this time in GBP denominated equities. It looks like 13th time unlikely as the Pound is trading...

GDP to influence exchange rates this week

The recent positive run for GBPEUR exchange rates came to an end last week, when UK inflation feel sharply and Governor of the Bank of England Mark Carney couldn't confirm the prospects of an interest rate hike in May. Sterling fell from the 1.16s to the 1.14s causing concern for euro buyers. Any further commentary from the Bank of England over the next couple of weeks before the decision will have the potential to cause further fluctuations. Other UK economic data in the form of...
GBPUSD: Sterling Looks to BoE for Further Advance

Pound weakens after hopes of a rate hike in May are dampened, where to...

Financial markets had been pricing in an interest rate hike from the Bank of England since some bullish comments from the Bank of England last month. The hopes of a rate hike have since dampened after some important comments from the governor of the Bank of England. Yesterday evening whilst speaking to the BBC, Mark Carney cooled expectations of a rate hike next month after not confirming that it would actually happen. There have been a few members of the BoE that have already voted...

Drop in Inflation decreases probability of BOE Rate hike (Daniel Johnson)

Is a rate hike in May by the BOE still likely? Yesterday we saw the release of Consumer Price Index (CPI) data. CPI is a key measure of inflation and there was a fall to 2.5%. In order to have a healthy economy it is important that average wage growth be close to parity with inflation and this is currently the case, with average wage growth (2.8%) currently sitting above inflation. Although this could be seen as very positive, could it be considered a danger...
Pound to Euro Forecast - Leadership Contest Drives GBP/EUR Rate Lower

GBP EUR Moves Higher Towards 1.16

The pound continues to maintain the higher ground against the Euro with rates pushing towards 1.16 for the GBP EUR pair. There is currently an excellent opportunity for buying Euros and those looking to secure may be wise to take the risk out of the market place. So far this year when there has been a surge higher for the GBP EUR it has only lasted for a brief period before falling lower. The outlook does appear to be brighter at present with rates for...