Pound to Dollar Rate Drops to One-month Low

Pound to Dollar Rate Drops to One-month Low

The pound skidded to a one-month low against the dollar on Monday after a global sell-off was triggered by China’s struggling Evergrande – the nation's second-largest property developer – denting risk-related currencies. This was compounded by uncertainties surrounding the Bank of England’s (BoE) monetary policy and surging gas prices. The UK government could offer state-backed loans to energy firms after wholesale gas prices skyrocketed, prompting large suppliers to request support to swallow the cost of taking on customers from companies that have gone under. Investors...
GBP EUR Higher Ahead of ZEW Sentiment Data

GBPEUR Slides on UK Energy Price Pressures

The GBPEUR exchange rate tumbled on Monday as traders reacted to a crisis in energy prices.  The situation is so bad that some are comparing it to the 2008 Northern Rock bailout in the banking system. We said yesterday morning that the pound was vulnerable this week after recent failures above the 1.700 level. The GBP to EUR trades at 1.1650 and will look to PMI data on Wednesday and the BoE rate meeting on Thursday. Energy crisis threatens the pound sterling A crunch in the energy...
GBP EUR Higher Despite ZEW Economic Number

GBP EUR Exchange Rate: Week in Review September 18th

The GBP to EUR exchange was higher again this week after the UK showed a strong employment report early in the week. That was followed by inflation that topped analysts’ expectations. Goldman Sachs were the first investment bank to bring forward their Bank of England rate hike projection on the latest data. The GBP v EUR was trying to hold gains above the 1.1700 level despite the latest data. Goldman Sachs sees Bank of England hike in May 2022 The investment bank Goldman Sachs gave the pound...
GBP EUR Gains on Goldman Sachs Rate Outlook

GBP EUR Gains on Goldman Sachs Rate Outlook

The GBP EUR exchange rate was 0.27% higher on Thursday after investment bank Goldman Sachs brought their interest rate hike expectations forward by a year. This week’s strong employment and inflation numbers have seen analysts reassess their dovish outlooks. The GBP to EUR trades at 1.1745 with Eurozone inflation ahead today. Goldman Sachs see earlier Bank of England hike Investment bank Goldman Sachs have boosted the pound versus the euro after they brought their anticipated Bank of England rate hike forward by more than a year, following...
GBP EUR Gains on Goldman Sachs Rate Outlook

GBP EUR Looks to Build on Strong ECB Rally

The GBP EUR exchange rate rallied strongly into the end of last week after the ECB interest rate and policy meeting. The move back above the 1.1700 level capped a strong bounce from the 1.1620-50 area and the pound sterling will look to add to these gains.  This week sees the UK economy posting the economic data are two busy weeks for Germany and the euro. The GBP to EUR saw yearly highs above the 1.1800 level in recent weeks but the slowing of the...
GBP EUR Exchange Rate: The Week Ahead September 12th

GBP EUR Exchange Rate: The Week Ahead September 12th

The GBP EUR exchange rate was higher on the week after the pair surged on Thursday with the latest ECB interest rate and policy meeting. The bank held interest rates at zero but said that they could start buying bonds at a reduced rate over the next months. Traders see the move as being pressured by the recent rise in inflation and will remove some of the artificial support from the economy over the second half of the year. The GBP to EUR was trading...
GBPEUR Exchange Rate: Week in Review September 11th

GBP EUR Exchange Rate: Week in Review September 11th

The GBP to EUR exchange rate surged on Thursday after the latest European Central Bank policy meeting. The bank kept interest rates at zero but talked of winding down its huge stimulus support measures. The pound had been under pressure earlier in the week after the government’s hike in National Insurance tax, which the BCC has said could hamper the UK’s recovery. The GBP v EUR was trading above the 1.1700 level again after finding support near the 1.1620 level. European central bank to ease pandemic...
GBP USD Tumbles After BoE Holds Interest Rate at Record Low

GBP USD Pound to Dollar Rate Breaks Through the 1.38 Barrier

So far this week, the pound has been pushed higher by moves in other currencies due to a lack of data releases from the UK economy or comments from Bank of England officials. On Thursday, the UK currency continued to edge upwards – driven by global risk appetite and dollar weakness following disappointing US jobs data – before jumping above the 1.38 resistance level. The dollar was still feeling the weight of a much weaker than expected ADP National Employment Report on Thursday. Even encouraging...
GBP USD Remains Largely Rangebound

Pound to Dollar Rate Extends Gains

The pound stretched its gains against the dollar on Tuesday as it rose to a two-week high. Comments from Federal Reserve Chair Jerome Powell on Friday continued to suppress the dollar and push up the pound. Speaking at the Jackson Hole economic symposium, Mr Powell had stopped short of signalling a precise timeline for a shift in monetary policy – simply saying it could be "this year". In the absence of economic indicators on what was a bank holiday Monday in the UK – and...
GBP USD Rate Consolidates on Interest Rate Expectations

Pound to Dollar Rate Recovers Some of Last Week’s Losses

The pound awoke from its slumber on Monday having touched a fresh one-month low against the dollar on Friday, at the end of a week that saw it record its worst week in two months against the US currency. The upward movement was prompted by a recovery in risk sentiment across markets after global growth concerns had triggered a broad selloff. While the pound managed to recover some of its lost ground against the dollar on Monday, it was still pinned below the 1.37 benchmark...