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...
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...
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...
Pound at its lowest against the Euro in 19 months, and 37 years against...
The pound is notably weaker today following the release of the latest UK Retail Sales numbers showing a surprise fall of 1.6%, which makes the economic slowdown anticipated, and likely recession ahead seem much worse than thought for Britain.
As I write, GBPEUR levels have dropped to a 19-month low, with the day low at the time of writing 1.1399 on GBPEUR and 1.1350 on GBPUSD. The cable level is a 37-year low, the worst for sterling since 1985 against the US dollar. I am...
Pound rebounds following lighter than expected inflation figures
Wednesday’s trading session saw the pound on the front foot, gaining back some of the losses from the past week against a basket of currencies. Inflation data released in the morning showed price growth slowed in July for the first time since September 2021. Could this be a signal that the cost-of-living crisis has begun to ease in the UK?
The Bank of England stated last month that they expect inflation to peak at 13%. The drop in price growth does pose an interesting question...
Will the pound keep rising against the Euro and when is the best time...
The pound to Euro exchange rate has bounced back from the recent lows rising above 1.16 and making a brave challenge for 1.17 in the last 24 hours. Some fresh confidence that finally, the British government is going to do something about the awful cost of living crisis facing the UK has seen investors take advantage of the recent lows of sterling and buy in some speculative positioning.
It might be argued that all this has done is stem the tide of a majorly depreciating...
Pound Sterling losses continue as cost of living crisis dominates headlines – New Prime...
Sterling exchange rates have continues to drift to kick start a new trading week, as the cost of living crisis dominates headlines across UK media.
With today being an important day for UK politics as we see the announcement of the winner in the Conservative party leadership contest, and ultimately who will be the new Prime Minister, they will almost instantaneously have to announce how they plan to combat what appears to be an extremely challenging winter for the majority of households and businesses.
It is...
Sterling exchange rates continue to slide – How low can the pound go?
Sterling exchange rates have seen further losses against both Euro and Dollar over the course of the trading week, as investors and speculators alike have made it clear there is a lack of confidence in the Pound at present.
With the cost of living crisis bearing down on the UK economy and a prolonged recession on the cards we have started to witness a move away from the pound and it appears that it is being treated much more like a riskier currency rather than...
Pound to Euro forecast: 5 month high to sell Euros for pounds
The pound to euro exchange rate has this week hit 1.1194 on the interbank exchange rate, presenting the best time in 5 months to buy pounds with euros.
Why is the pound weak against the euro?
This is the combination of increasing uncertainties surrounding Brexit, combined with the European outlook not being quite as bad as expected. With the pound likely to struggle in the coming weeks with the Conservative leadership challenge looming, there could be more opportunities for euro sellers.
This week saw some rather worrying...
