Will the Pound Fall Further on Bank of England Decision and Falling Inflation?
Sterling lower after UK Inflation drops more than expected to 6.7%
The pound has dropped across the board today after UK Inflation data came in lower than expected. This is good news in one sense as the Bank of England has been trying to bring this down for many months.
Sterling has been supported by expectations of a higher interest rate in the future, with a key meeting tomorrow.
UK interest rates are much higher in the last year than in recent years, this will typically see...
Sterling dips against stronger US Dollar in data heavy week
How will the pound finish August and perform in September?
As we often find, following a bank holiday, there is a lot to compress into the final days of the week.
That is certainly the case this week in the FX markets, we have a heavy economic calendar.
We have some key pieces of economic data to influence September’s interest rate decisions.
The FED, ECB and Bank of England all meet in the final weeks of September, and the FX markets will be looking at the current data...
Pound Rises on ‘Higher for Longer’ Interest Rate Expectations
Sterling stronger as UK interest rates remain high
Sterling has been higher following a dip last week. Interest Rate expectations are setting the tone for some of the positions we are seeing so far.
The Bank of England raised interest rates as expected 25 bps last week taking UK interest rates to 5.25%. We did see Sterling dropping on the news.
Cable dropped to $1.2623, its weakest level against the dollar since late June. GBPEUR fell to 1.1565, both have since recovered.
This does highlight once again how...
Will the pound rise or fall on the Bank of Meeting tomorrow?
The pound is delicately poised ahead of a key interest rate decision
Sterling has been trading more strongly against a weaker Euro, but is suffering against a stronger dollar. Tomorrow's latest Bank of England decision could trigger some volatility.
Expectations are for a hike but the market is unclear about whether or not it will be 25 basis points or 50 basis points.
There is no doubt UK inflation is running too high, the latest reading was 7.9%. This is well above the Eurozone at 5% and...
The pound rises but this is not necessarily because of sterling strength !
Pound Sterling Forecast remains Mixed
Yesterday saw a raft of good news pieces which helped to bolster the pound. Yesterday the IMF upgraded its global growth forecasts 2.8% to 3.0%.
This has benefited sterling as typically the UK does well when the global outlook is more positive.
The IMF expects the UK economy to grow by 0.4pc this year, this is a big upgrade compared with the 0.3pc contraction it predicted in April.
As well as the IMF upgrade, EY has upgraded its UK economic growth forecast for...
UK growth lower as Sterling hits 15-month highs against the Dollar!
Data released this morning confirmed UK GDP fell by 0.1% last month. Despite this, sterling has risen to a 15-month high against the dollar. Cable (GBPUSD) rates open this morning above the key 1.30 threshold. GBPEUR opens slightly softer following the growth data but is still within range of the 11-month high reached earlier this week.
Dollar rates have taken a big hit over the last 24 hours. Yesterday, US CPI (inflation) confirmed a drop in price growth to 4.8%, lower than expectations of 5%....
GBPEUR hits 11-month highs ! Will the pound keep rising ?
The pound has been rising but can this continue
Expectations for the pound to carry on rising remain fairly high in the FX markets as sterling has continued to touch fresh highs.
Against the Euro we have been comfortably in the 1.17s, and against the US Dollar 1.29. GBPEUR levels are an 11-month high and GBPUSD levels are testing 16-month highs.
The outlook for sterling has increased and improved as investors back further interest rate hikes in the future.
Typically the raising of an interest rate sees the...
Sterling back above 1.17 against the euro!
Sterling back above 1.17 against the euro
Pound sterling opens this morning’s session back above 1.17 against the euro. 1.17 is a key threshold for the pairing and has only been breached on a couple of other occasions this year. GBPEUR is therefore trading within range of the highest levels seen since August 2022.
A transfer of £200,000 is buying €12000 more vs the lowest level of 2023. This presents a real opportunity for euro buyers.
Forecast data collated by Lumon from circa 50 banks and financial...
Will the Pound get stronger against the Euro in July?
GBPEUR Rates to move up in July?
The Pound Euro exchange rate earlier hit this month hit its best level to buy Euros since August 2022.
The main issue impacting both the UK and Eurozone is that of inflation.
The main way to combat rising inflation is to hike interest rates, which is what has been happening both in the UK and Europe.
Earlier this month the Bank of England increased interest rates by 0.5%. This was the thirteenth interest rate hike in a row by the central...
UK Inflation Stagnates at 8.7% Will the pound rise on the Bank of England...
Will Sterling be strong after the Bank of England decision?
So, an interesting couple of days ahead of us with the Bank of England interest rate decision tomorrow, and we have had the latest Inflation data this morning.
The headline inflation reading is 8.7%, with 7.1% as the core reading.
We know how important Inflation data has been in the Bank of England’s assessments on interest rates.
The last reading Inflation dropped to 8.7% versus the 8.4% expected, this caused sterling strength and is arguably one of the...