GBP AUD Consolidates with UK Employment Due

GBP exchange rates remain strong as interest rates remain at 15-year high

Last week the Bank of England voted to keep interest rates on hold for the 4th consecutive time. Whilst this was expected in the lead up to the decision, we have seen a change in the voting patterns of the 9-voting members. The rate will remain at 5.25% and the vote was a 6-3 split. Interestingly one member of the BoE’s Monetary Policy Committee voted for a cut so could this be the start of a change of approach...

Could this week’s economic updates push the Pound higher?

Looking over a 1-month chart for the Pound to Euro exchange rate, the Pound has gradually climbed in a consistent trend against the Euro. There has been little volatility, but the GBP/EUR pair have climbed from 1.1500 up to 1.1725 in the space of 1-month, which is an almost 2% increase. At last week’s European Central Bank (ECB) interest rate decision and statement afterwards ECB President Christine Lagarde opted not to push back against expectations of...

GBPEUR hits 1.17 – will the pound continue to rise?

GBPEUR exchange rates rose to 4-month highs during yesterday’s session, hitting 1.17 on the interbank market. Sterling is trading 0.6% off the 52-week high against the euro, making now an opportune time for sterling sellers. Sterling has remained resilient against the dollar, holding above the key threshold of 1.27. Cable (GBPUSD) rates are 0.7% off the 5-month high. Services & Manufacturing data Purchasing Managers Index (PMI) surveys senior executives within the manufacturing and...

Will GBP exchange rates remain strong despite recession fears?

Last week saw the Pound to Euro break above the 1.1650 handle for the first time this year, after remaining rangebound between 1.1600 to 1.1650 since the start of 2024. The GBP/EUR pair have begun the week above 1.1650 even if only just, so the trend for the pair is gently climbing despite there being concerns for the UK economy falling into recession. Retail Sales figures for December were released last week and came out below...

Sterling rises following UK inflation release – will the pound get stronger?

UK inflation data released this morning confirmed a rise in CPI inflation from 3.9% to 4%, causing an immediate rise in pound sterling’s value. The markets were expecting inflation to continue to drop off as it has for much of the last year. Sticky inflation poses a threat to the prospect of interest rates being cut in the UK. The Bank of England have kept interest rates above 5% in attempt to cool down the rise in prices.
GBP EUR Exchange Rate: Weekly Review July 16  

When will the Bank of England begin cutting interest rates, and how could this...

The Pound traded within a very tight range last week, as currency markets have begun the year in quite a muted fashion. There was a range of just 115 pips for the GBP to EUR exchange rate, and the EUR to USD exchange rate traded within a range of just 80 pips. The EUR to USD exchange rate is the world’s most traded currency pair so this demonstrates how quiet markets were last week. Throughout much...

Could the Pound fall in value if the UK officially slips into recession?

Despite being a quiet week for economic data releases, on Friday there is arguably one of the most important data releases for the UK economy so far in 2024 as GDP figures for November will be released. In the third quarter of 2023 the UK officially contracted after revised figures showed a slight drop in economic output of -0.1% across the 3-month period of July, August and September. For the UK to into an official recession...

Could a UK recession apply further downward pressure on the Pound?

Last week the Bank of England voted to keep interest rates on hold at 5.25% as expected by the markets. Financial analysts now believe that the Bank of England has completed its current cycle of interest rate hikes with the attention now turning to how long the BoE will keep interest rates at the current elevated levels. The Pound remained quite flat against the Euro as a result of the decision, but due to some US Dollar weakness the Pound to US Dollar rate actually climbed...

Will comments from the Bank of England this week help support the Pound?

Another week without many economic updates out of the UK is on the cards this week, with the main focus being the Bank of England’s interest rate decision on Thursday. The Pound suffered last week, losing value against both the Euro and the US Dollar as the lack of data released from the UK left the Pound vulnerable. Aside from the USD and Euro strengthening against the Pound, the Pound is also vulnerable at the moment due to global risk sentiment declining due to the...
GBP USD Exchange Rate: The Month Ahead September 

Will the US Dollar get stronger in the near future?

Will the Dollar improve further against Sterling and the Euro? The US Dollar has been gaining vs both the Pound and the Euro since the start of the month. Oil prices have risen dramatically recently and as oil is priced in US Dollars this can often lead to the currency strengthening. The tensions are escalating between Israel and Gaza which are likely to increase in the short term. This will cause further instability in the Middle East which could impact upon oil supplies. Geopolitical uncertainty will also often lead...