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...
GBP AUD Pauses After a Recent Bounce Higher 

Interest rate expectations could be the main driver behind GBP exchange rates in 2023

Towards the end of last week we saw some considerable volatility within the currency markets as data releases, mostly US based resulted in some big swings for a number of currency pairs. Sterling exchange rates, particularly cable (GBP/USD) saw price changes of over 1% towards the close of the trading day as the Dollar weakened across the board of major currency pairs. There has been more of a risk-on attitude within the markets owing to expectations that US interest rates may not be hiked much higher,...
GBP USD Slips Ahead of BoE Rate Decision

US Dollar improves against the Pound and the Euro

US Dollar vs Pound hits 3 week high The US Dollar vs both the Euro and the Pound has started to increase once again ahead of the latest US employment data due out later today. The US ADP jobs report published yesterday was stronger than expected and this has provided further levels of support for the US Dollar. The most recent Federal Reserve minutes were also published this week which has signalled that we could see further interest rate hikes moving into this year. As we look ahead...
GBP EUR: Halifax Sees Signs of Housing Slowdown

What to expect from GBP exchange rates in 2023?

Looking back on 2022, GBP exchange rates had one of the most volatile years on record especially against the US Dollar. After such a bumpy ride for the Pound you may expect to see less volatility for GBP exchange rates but with economic growth set to drop this can never be ruled out, especially at the beginning of the year. To recap 2022, GBP/USD experienced its worst annual performance since 2016 which was an exceptional year owing to the unexpected Brexit vote which caught the currency...

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...

Red hot week for economic data, as temperatures across the UK plummet

Things have been looking brighter for the pound in recent weeks and the pound finished last week strong, after suffering a near two and a half cent (1.2345 to 1.2106) slide against the greenback (GBP/USD) from Monday to Wednesday. The pound has benefited from an improved ‘risk on’ appetite in recent weeks and responds well to positive news. Cable finished the trading week on the 1.23 handle. The positive news in question relates to recent comments from US Federal reserve chair Jerome Powell’s comments around...
New Zealand Dollar weakens further as Global Dairy Trade auction falls lower than expectations

Will the Pound continue to improve against the US Dollar?

Pound Dollar rates hit 3 month high The Pound vs the US Dollar is now trading at its best levels to buy US Dollars with Pounds since the end of August. With the Pound improving this has created some good opportunities for those looking to convert Pounds into US Dollars. The US Dollar has slowly begun to weaken following falls in US inflation recently as it appears as though the Fed's policy of interest rates has started to work. Inflation is still extremely high in the UK whilst...
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...