Bank of England Emergency Rate Cut This morning the Bank of England has announced an emergency cut in interest rates to shore up the economy in the wake of the coronavirus outbreak. The MPC (Monetary Policy Committee) has cut the base interest rate from 0.75% to 0.25%, taking borrowing [...]
The Single has gained against the majors today despite the Eurozone being one of the most exposed global economies to the coronavirus. The Euro is known as a funding currency, due to its 0% interest rate. Investors borrow in Euros to funds investments in high-yielding assets such as stocks. When [...]
Coronavirus and interest rate cuts The sell-off in the Pound has been astounding. GBP/EUR exchange rates shed four months of gains in the space of just five days. The six-cent movement has been the largest weekly loss since the October 2016 flash crash. The main driving force behind the [...]
Could Sterling gains be capped? We have seen the Pound gain against the Euro and US Dollar for the third consecutive day after it was confirmed that GDP grew in the UK by more than expected in the month of December. The Pound to Euro exchange rate has reinforced [...]
Pound Strengthens After UK Ecostat Release The pound rose against both the US dollar and the euro on Tuesday after slightly better than expected GDP data from the UK was published on Tuesday morning. Although quarterly GDP numbers showed the UK economy stagnated in the last quarter of 2019, [...]
Choppy Trade for GBP It's been an interesting start to the month for the pound, with average daily movements of around 1% on both Monday and Tuesday. The UK currency started the week on the back foot after fears of a hard Brexit resurfaced, following the UK's formal departure [...]
Pound Rises for Second Consecutive Day The pound rose against both the US dollar and euro on Wednesday, for the second straight day, after better than expected employment data on Tuesday gave sterling a much-needed boost. Figures published by the Office for National Statistics on Tuesday morning revealed a [...]
Will the BoE cut rates? UK inflation figures were published yesterday morning (9:30am) which came in at the lowest reading seen for the past three years (Nov 2016). The rate dropped to 1.3%, down on the anticipated 1.5%. This has raised fears of a potential interest rate cut by [...]
GBP/EUR Rises to 1.17 The pound staged a modest comeback against both the euro and the dollar on Tuesday as investors saw the recent weakening of the currency as an opportunity to buy it at a bargain price. As a result, sterling rose to trade above 1.30 against the [...]
Volatile Start to the Week for UK Currency The pound remained fairly subdued towards the end of last week as Thursday and Friday saw low trading volumes as many decided to take Thursday and Friday as bridging days to extend the festive period. However, on Monday we saw some [...]
