GBP EUR Exchange Rate: The Week Ahead June 12th

Will the Pound recover its recent losses against the Euro?

Despite the rate of cable (GBP/USD) climbing as a result of US Dollar weakness, the Pound has been slowing softening against the Euro throughout November so far. Between the middle to late October the Pound remained a good few cents above its current trading levels against the Euro, and even climbed above 1.1650 at one point offering Sterling sellers a good opportunity to make their GBP/EUR currency exchanges. The climb in the Pound last month was a surprise as Sterling climbed by almost 10-cents from the...
GBP EUR Drops After Bank of England Recession Warnings 

BoE decision looms – where will the pound go next?

The Bank of England are set to announce their latest decision on interest rate policy at midday today. Inflation has become embedded in the UK economy and the bank are tasked at keeping inflation below 2%. The current rate of inflation is over 10%. Interest rate policy is a key tool in managing inflation. A central bank will raise interest rates in an attempt to cool the economy down and bring inflation under control. The bank has raised interest rates at the last 8 meetings. Today...
GBP AUD Slumps After UK Cabinet Resignations 

Sunak’s presence steadies the Pound for now, but what do the experts predict for...

Rishi Sunak’s presence as Prime Minister has so far steadied the Pound after one of the most volatile periods for the Pound in recent years. The end of September and beginning of October was perhaps the most volatile period of trading for the Pound since February 2020 when the seriousness of Covid became evident. Prior to this period of volatility, the vote in favour of Brexit during the summer of 2016 was perhaps the most volatile time for the Pound. Those of our readers hoping...
GBP USD Exchange Rate Falls to Two-Year Low Amid Political Uncertainty 

Will the Pound Continue to Rise as Rishi Soothes Market Nerves?

The pound has been performing near the top of the recent ranges as the new UK Prime Minister Rishi Sunak takes office. Sterling has rebounded back into the 1.15s on GBPEUR and GBPUSD, presenting much improved times to buy a foreign currency when selling the pound. As Rishi himself has stated, the UK faces some major challenges with inflation running at 10% and fears over stagnation and recession likely to harm the economy ahead. Rising interest rates are going to increase borrowing costs for millions...
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...
GBP USD Exchange Rate Falls to Two-Year Low Amid Political Uncertainty 

Will Liz Truss lead the Tories into the next election and how will this...

Despite being appointed as Prime Minister just over a month ago on the 6th of September 2022, Liz Truss is already coming under pressure and there is speculation regarding her remaining in power already. The Pound has traded in a more speculative fashion over the past month than it has done for years after a disastrous mini budget which sent shockwaves throughout financial markets, and saw the Pound trade against the lowest level against the US Dollar in recent history. Truss appointed Kwasi Kwarteng as Chancellor...
GBP AUD Moves Higher with a UK GDP Boost 

Will Sterling continue to lose value despite the Bank of England’s efforts?

Sterling exchange rates have begun the week on the back foot despite efforts from the Bank of England to support the currency and the UK economy as whole. After hitting an all-time low against the US Dollar two weeks ago, and an over 18-month low against the Euro at the same time, the Pound begun a fightback thanks to some backtracking by Chancellor of the Exchequer Kwasi Kwarteng after a disastrous first mini-budget. Those of our readers hoping for a stronger Pound will also be aware...

Will the pound weaken again in October?

The pound suffered some particularly volatile movements last week, with GBPEUR rising and falling 7 cents, and GBPUSD 9 cents. This relates to around 6% worth of movement on GBPEUR and 8% on GBPUSD. Such movements just highlight how volatile currency can be, and indicates why any clients looking to buy or sell the pound should be very conscious of the current market, and some of the particular attributes and behaviour of a currency, that can influence such sharp rises and falls. This week the Conservative...
GBPEUR UK election: Why haven't pound to Euro exchange rates fallen?

Pound hits record low against the US Dollar, and drops significantly against the Euro

Yesterday was a very difficult day for the Pound as financial markets appear to have lost faith in both the Bank of England’s monetary policy and the new cabinet’s mini budget. Last Thursday the new Chancellor of the Exchequer, Kwasi Kwarteng announced his mini-budget outlining plans for a raft of tax cuts. Then over the past weekend he pledged further tax cuts in order to try and reinvigorate the UK’s stalling economy and attempt to counter the increasing inflation rates not seen in decades. His plans...

Why Are Sterling Exchange Rates So Low? Why Is The Pound Dropping?

Sterling exchange rates have taken another huge hit overnight as the trend of weakness for the pound continued straight at the start of the open on the Asian markets last night. The Pound dipped all the way down to the 1.02s against the Dollar and the 1.07s against Euro as investors and speculators rushed to drop the currency and this caused a great deal of weakness. So why are Sterling exchange rates dropping? Since the announcement of the mini-budget and Kwasi Kwarteng's plans to cut taxes we...