GBPEUR Sees a Sharp Rebound with ECB Stimulus Plans

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...

What will 2023 Bring For Sterling Exchange Rates?

Sterling exchange rates have dropped on the whole throughout 2022 and it is fair to say there are a number of quite obvious reasons behind the poor performance of the pound over the course of the year. Here is a summary of GBP paired against a selection of major currencies and the movement since 1st Jan 2022 as an example. GBP/USD -10.79% GBP/EUR -4.97% GBP/CAD -5.44% GBP/AUD -4.69% GBP/CHF -9.97% All in all, the above suggests the pound indeed had a torrid time of it, most notably shortly after Liz Truss...
GBP to EUR Forecast: Will Sterling See Further Losses Against the Euro?

Negative growth puts further pressure on the pound

Negative growth puts further pressure on the pound The pound has had a negative start to the week losing ground against the euro, dollar, and a basket of other major currencies. The Bank of England’s latest interest rate hike did little to support the value of the pound. Sterling lost value against the euro and dollar almost immediately after the banks statement, a week ago today. Downward pressure on the pound was further fueled by the European Central Bank’s decision to raise rates by 50-basis...
GBP EUR Rallies After Bank of England Rise in Interest Rates

BoE interest rate decision looms – will it help or hinder the pound?

BoE interest rate decision looms – will it help or hinder the pound? The Federal Reserve announced last night their latest decision to raise interest rates by 50-basis points. This move takes US interest rates to 4.5%, the highest level in 15 years. 50-basis points is the smallest hike since May after the Fed raised by 75-basis points at the previous four meetings. This decision was likely influenced by Tuesday’s CPI data which indicated inflation may have hit its ceiling. US CPI is at 7.1% vs...
Pound to Dollar Rate Pares Losses

Will the pound continue to rise in December?

The pound has recently touched fresh highs against both the Euro and US dollar, begging the question will the pound continue to rise in December? Financial markets had become slightly more buoyant in recent weeks leading to sterling bouncing back from the October lows. If we cast our minds back to October and the Liz Truss and Kwasi Kwarteng 'mini-budget' fiasco, sterling has made a incredible recovery. We have moved near 20 cents higher on GBPUSD, from 1.03 to 1.22, and on GBPEUR near 10...
Oil Price Volatility Expected to Continue, Could GBPCAD Break Through 1.80 Barrier?

Sterling remains rangebound, but could tomorrow’s economic data releases cause a spike?

Sterling exchange rates traded within a think range during yesterday’s trading session, with the GBP/EUR exchange rate trading within a range of just half a cent. Since breaking above the 1.15 threshold the GBP to EUR exchange rate has mostly hovered between 1.1500 and 1.1550 and that’s where the pair are trading at the time of writing. After quite a volatile month or two, especially in the wake of the Mini-Budget almost two-months ago, the markets seem pretty calm. This may continue throughout the week as...
GBP EUR Exchange Rate: The Week Ahead August 15th

Important week for Sterling exchange rates with economic data and the Autumn statement due...

We have a really important week ahead for Sterling exchange rates, with a number of key economic data releases due over the course of the trading week, and the delayed Autumn Statement to be delivered on Thursday. There are still concerns over the outlook for the U.K economy, so economic data is being watched closely by investors, and we have some key releases over the next few days which could cause the pound to be particularly volatile. Tomorrow morning we have unemployment data, expectations are for...
Pound to Euro Starts the Week off Steady

Will the pound weaken again?

Sterling exchange rates hang in the balance once again following a day of poor performance in yesterdays session. The pound dropped close to monthly lows against euro while also losing value against the US dollar and a basket of other currencies. Sterling has opened this morning on a more positive footing. The announcement that cryptocurrency giant Binance would not rescue their competitor FTX triggered a significant sell-off in the crypto markets. A number of asset funds are invested in the crypto sphere meaning a sell-off...

Strong start to the week for Pound Sterling – What could this week bring...

We have seen a strong start to the trading week for the Pound against every major currency, as Sterling exchange rates have bounced back from losses towards the end of last week. The Pound did drop off at the back end of the week due to a fairly dovish tone set out by the Bank of England at the BOE interest rate decision, where the markets were informed not to expect as greater hike in interest rates in the coming months as had been originally...
GBP EUR Exchange Rate: Weekly Review July 16  

Will Incoming Prime Minister Sunak bring stability for the Pound?

The Pound begun the week in a strong fashion off the back of news that former Prime Minister Boris Johnson opted to pull out of the Conservative leadership contest. Britain’s former Chancellor of the Exchequer, Rishi Sunak is now confirmed to step into the role of Prime Minister making him the youngest Prime Minister in around 200 years. Perhaps the uncertainty being lifted as to who would become Prime Minister was behind the boost in the Pounds value yesterday, although since then we have seen...