Bank of England Interest Rate Decision – When should I buy or sell the...
Pound sterling poised for Bank of England meeting tomorrow
Tomorrow is the eagerly awaited Bank of England interest rate decision. Expectations are locked on for a 0.25% hike from the Bank of England.
This will take interest rates in the UK to 4.5% and could lead to volatility for pound sterling. Exchange rates can be heavily influenced by changes in interest rate policy as I have written previously.
GBPEUR has hit fresh highs at 1.15 which is a six-month high. GBPUSD remains near the 13-month highs of...
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,...
UK inflation remains high – will the BoE give the pound a boost?
UK inflation remains high – will the BoE give the pound a boost?
Economic data released yesterday shows UK inflation (CPI) remains elevated above 10.1%. Forecasters were expecting inflation to fall to 9.8% following last month’s reading of 10.4%. The inflation reduction is positive for the UK and was largely driven by a fall in fuel and oil prices. However, food prices continue to rise as the UK consumer feels the squeeze of the continuing cost of living crisis.
Sterling exchange rates have remained relatively unchanged...
Will the Bank of England help or hinder sterling exchange rates?
Will the Bank of England help or hinder sterling exchange rates?
Last night the US federal reserve raised interest rates by 25-basis points against a backdrop of financial instability in the US banking sector. US interest rates are now at the highest since 2007. At the start of the week many had expected the Fed to hold rates at their March meeting. The SVB banking failure caused concern throughout the sector and further interest rate rises could inflict more pain on troubled banks.
Cable (GBPUSD) benefitted...
Will the Pound continue its recent run of form next week?
Pound vs Euro remains strong this week
The Pound Euro is close to its best rate to buy Euros in a few weeks after a solid start to the week.
The Purchasing Manager's Index helped to demonstrate that the UK economy is faring a little than many may have expected including myself.
After having recently avoided a recession in the UK there are a few bright shoots appearing at the moment.
However, with inflation still causing a huge problem for consumers at the moment there are still a...
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 Bank of England cause the pound to rise or fall tomorrow?
This Thursday is the latest UK Bank of England Interest Rate decision, where there is a prediction for interest rates to be raised to 4% from their current 3.5% level. There is a high expectation this will be the case, with the news effectively priced in according to some commentary in the press.
Typically speaking, a higher interest rate will lead to a stronger pound since a higher interest rate generally makes a currency more attractive to hold by investors. In a similar fashion to...
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...
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...
