GBP USD Exchange Rate Plunges to Lowest Since September 2020

Will the Bank of England stop hiking interest rates after next week’s expected hike,...

The Bank of England is expected to hike interest rates once again on the 21st of September, bringing the base rate of interest up to 5.5%. This would be a 15th consecutive interest rate hike from the central bank, with the rate currently sitting at a 15-year high. Throughout the year the increasing rate hikes have helped push the Pound higher against most currency pairs, and the Pound was the strongest performing currency of the G10 in the first half of the year. Expectations of further...
GBP EUR Exchange Rate: The Week Ahead October 31st

Will Sterling rise or fall in September?

Vital month ahead for pound sterling exchange rates The pound has started the month of September in a buoyant mood. Sterling is back over 1.17 against the Euro, presenting some of the better times of the last year buying GBPEUR. Clients interested in the US dollar and sterling might note the pound is weaker against the greenback. GBPUSD has been back in the 1.25s, which really takes us back to some of the lowest since June. This is all the result of a shift in EURUSD exchange...

Sterling exchange rates climb in the lead up to tomorrows key Inflation data release

The Pound rose earlier this morning after the latest wage growth data was released by the Office of National Statistics (ONS). The data reported that basic wages within the UK grew at a record pace in Q2 this year, as wages excluding bonuses were 7.8% higher than a year earlier during the same time period. This is also the largest increase since records begun back in 2001, and it adds to the pressure on the Bank of England to try and bring down increasing inflation levels. Tomorrow...
Pound falls against the euro but could UK GDP data save the pound tomorrow?

GBP exchange rates remain steady but could Friday’s GDP data change this?

Now that last week’s busy economic calendar is out of the way, this week feels like more of a typical August week where economic data releases can be quite limited. The Pound to Euro exchange rate remains around the 1.1600 level, and yesterday there was little market movement throughout the entire day of trading. The Bank of England’s decision to hike interest rates by 0.25% as widely expected resulted in another drop for the Pound in the 24-hours after the announcement, which is a pattern we’ve...

Will inflation cause the Pound to rise?

Bank of England raise interest rates for the 14th time in a row The Bank of England raised interest rates once again yesterday for the fourteenth time in a row. The central bank has committed to reducing inflation rates which remains well above target. The current base rate is at 5.25% and we should expect more interest rate hikes to come before we see the Bank of England easing monetary policy. Interest rates have now gone up on every occasion since December 2021. This has brought the base rate...

Will the Pound fall if the UK enters a recession?

At the time of writing the Pound is trading towards the top end of its 2023 ranges against most major currency pairs. Last week, the Bank of England opted to hike interest rates by 0.5% which came as a surprise to financial markets, after a hike of 0.25% was expected. Sterling exchange rates were quite volatile in the aftermath of the decision to raise rates by 0.5%, and GBP/EUR peaked just below 1.1750 which is the highest level the pair have reached so far in 2023,...

Sterling hits a 10-month high against the Euro, could the Pound climb even higher?

The financial markets are gearing up for what could be a busy week for exchange rates, particularly the Pound as on Thursday the Bank of England are expected to hike interest rates. The base rate currently sits at 4.5% after 12 consecutive interest rate hikes from the Bank of England (BoE). The expectation is for another 0.25% hike this Thursday, although analysts believe there is a 25% chance of a 0.5% hike. This would be an unusual move from the BoE in my opinion as they...
GBP AUD Dips Again Ahead of BoE Rate Decision

Will the Pound to Euro rate recover after dropping from 10-month highs?

Earlier this morning the Pound to Euro exchange rate had fallen almost 1-cent from the 10-month high the pair reached yesterday morning. The GBP/EUR pair broker above 1.1700 for the first time since August last year yesterday, whereas this morning the pair bottomed out at 1.1610 although some upbeat data released this morning have given the Pound a boost. Pay growth within the UK has risen by 7.2% on an annual basis when the timeframe of February to April is measured. This figure excludes bonuses and...

This week ahead – Are 2023’s Sterling high’s set to continue?

For the first time in 2023, we saw the Pound breach the 1.16 ceiling against the euro last week. On the 1st of June 2023 we saw a new a 2023 high reached for GBPEUR of 1.1667 with sterling managing to maintain a mid-market level of above 1.16 for the remainder of the week. The Pound saw similar rises against several currencies, most notably the Australian and New Zealand Dollar, respectively climbing to both 2- and 3-year highs. Analysts have raised their bets on further...

Will the Pound to Euro exchange rate break above 1.16 this week?

The Pound has begun the week in a bullish fashion after the Spring bank holiday yesterday, with the GBP/EUR exchange rate hitting a fresh 6-month high this morning. Despite the economic calendar in the UK being very sparse this week, the economic data releases overnight has provided the Pound with a boost. To summarise the data released last night, overall shop price inflation has hit a fresh high according to the British Retail Consortium (BRC), although fresh food inflation has eased slightly for the first time...