ECB’s inflation concerns weaken the Euro, will GBP/EUR manage to breach 1.13 anytime soon?...

The Pound to Euro exchange rate breached 1.13 today before falling back into the later 1.12's. Some bearish comments from European Central Bank (ECB) President, Mario Draghi first thing this morning put the Euro on the back foot throughout the day, although it does appear to have some support around the 1.13 mark. Draghi stated that there needs to be further evidence that inflation dynamics are moving in the right direction before the ECB will consider ending its extensive quantitative easing programme which appears to have...
Pound to euro Awaits ECB Rate Decision for the Next Path

EU summit to have major influence on GBPEUR exchange rates

Yesterday GBPEUR exchange rates spiked close to 1.13 off the back of the Spring budget update. Chancellor of the Exchequer Philip Hammond, as expected, announced that the Office for Budget Responsibility (OBR) have increased growth forecasts for the next 12 months up to 1.5%. Interestingly the OBR actually only cut the growth forecast from 1.5% to 1.4% at the Autumn budget, which shows the UK economy has performed well over the last 6 months. For people that are converting pounds into euros or euros into...
Pound to Euro Gains After Weaker German Retail Sales

GBP/EUR exchange rates still range bound – Data tomorrow to impact Euro exchange rates

So far this week we have still seen GBP/EUR exchange rates remain in the same range of 1.12 - 1.13 with no major threat of breaking out. Tomorrow we have a number of releases that do have the potential to change that, all from the Eurozone. European Central Bank president Mario Draghi is due to speak tomorrow morning at 08:00am and ECB member Praet is due to follow up with a speech at 08:45am. Any comments from either member that hint towards any fuiscal changes in...

Will the Spring statement cause market volatility? (Daniel Johnson)

Will there be any surprises from Hammond? Philip Hammond, UK Chancellor of the Exchequer is due to deliver the spring statement today. It is expected to be a no frills affair with no big surprises that could rock the markets. I tend to agree with this and I do not expected any breaking changes. It will commence around 12.30pm and is due to last around 20 minutes. Hammond has stated  that no other major economy has two major fiscal set-piece events a year and “neither should we”. He...
GBPEUR Rejected by 1.17 Price Level Again

Sterling makes minor gains against the Euro as the week nears an end

GBP/EUR exchange rates have slightly risen as the week nears an end, following on from one of the least volatile weeks for Sterling exchange rates that we have seen in over two years, with GBP/EUR in particular being range bound between 1.1150 and 1.1270. The end of week spike appears to have been caused by news following the ECB (European Central Bank) interest rate decision which came out yesterday. Markets had expected a decision on signalling the end of QE (Quantitative Easing) in the April meeting,...

The French cause unrest in Brexit Talks (Daniel Johnson)

Concerns over UK Financial Sector could weigh on Sterling The French are making things difficult for the UK in Brexit talks. French Economy Minister, Bruno Le Maire has stated there is very little chance of Britain securing a free trade deal for the financial services that would provide the level of access the UK seeks. Le Maire said the UK would have to use a legal mechanism known as equivalence. Equivalence allows countries outside the EU limited access to the single market, controlled by Brussels,...
ECB interest rates and Brexit update

GBP EUR Rates ahead of Philip Hammond Speech Today (James Lovick)

The pound has struggled to perform this week trading in a very tight range against the single currency. Rates for GBP EUR have fallen to 1.1180 this morning as the markets focus on a speech today from Chancellor of the Exchequer Philp Hammond. The speech is likely to be a very important speech ahead of key trade negotiations which are expected to start later this month. The French economy minister Bruno Le Maire has made clear his views that Britain is not to have...

Sterling drops as Brexit talks take centre stage, will GBP/EUR drop below 1.12? (Joseph...

The Pound to Euro exchange rate has dropped this afternoon, as its emerged that draft guidelines on a trade agreement between Britain and the EU are published on Wednesday. Donald Tusk, the chairman of EU leaders was in London to discuss the Brexit negotiations with UK Prime Minister, Theresa May recently. It will be him that presents the draft guidelines tomorrow so those interested in how the GBP/EUR rate is performing should be aware of this. In the morning there will be GDP figures released out...
GBPEUR Rejected by 1.17 Price Level Again

Factors impacting GBPEUR exchange rates

As always Brexit negotiations continue to drive GBPEUR exchange rates and at present GBPEUR has reached a key support level. Over the last 8 weeks every time GBPEUR has reached 1.12 we have seen the pound strengthen against the euro? The question is will this trend continue this month? Negotiations are on going and UK Prime Minister Theresa May is asking for a bespoke trade deal with the EU, however Michel Barnier keeps reiterating that a bespoke trade deal is another phrase for cherry picking....
GBPEUR Rejected by 1.17 Price Level Again

Investors hang on Theresa May’s speech at 13.30 (Daniel Johnson)

May’s speech expected to cause volatility GBP/EUR rates will be mainly dictated by the progress in Brexit negotiations. The Irish border situation has again come into the spot light. UK PM, Theresa May has turned down proposals from Brussels that could potentially annex Northern Ireland by keeping them in the single market. The PM is due to speak later today and investors wait with baited breath to see if May gives some form of clarity on the Brexit situation. She is widely expected to rule out...