Pound Under Pressure From Interest Rate Comments - June 30, 2015 9:38

WH13762612 After achieving a fresh seven-year high against the Euro yesterday, the Pound lost out by around 200 pips before the close of trade. While hopes that Greece will vote Yes in the upcoming referendum (and effectively keep the nation in the currency bloc) supported the Euro, Sterling came under pressure due to dovish interest […]

Retail Figures Could Push GBP Further - June 18, 2015 10:01

The Pound was trading near the 1.40 level against the Euro on Thursday as concerns over Greece boosted demand for safe-haven assets. Against the US Dollar, Sterling strengthened to 1.58 as the Federal Reserve lowered both its growth forecast and interest rate projections. The Pound could make further gains if the latest British retail sales […]

Emphasis Turns To Rate Hikes - June 8, 2015 9:13

Sentiment towards the Pound improved slightly on Friday in response to a fairly sanguine inflation expectations report. Despite the consumer price index currently standing at a half-century low of -0.1%, the Bank of England’s latest survey showed that Britons expect inflation to rise to +2.2% over the next 12 months. Governor Mark Carney commented last […]

UK Economy Grows Despite Q1 Slowdown - June 1, 2015 9:12

Over the weekend the Confederation of British Industry (CBI) suggested that despite the slowdown during the first three months of the year the UK economy grew at its fastest pace for 12 months during the second quarter. CBI chief Rain Newton-Smith commented that a ‘stellar increase’ in private sector activity combined with ‘increased spending power’ […]

US Dollar Gains Ground After Housing Data - May 20, 2015 10:01

The Pound Sterling declined against the US Dollar as the currency remained under pressure from Tuesday’s negative UK inflation data. Inflation dipped -0.1% in April, defying expectations for an unchanged figure. Against the Euro the Pound advanced sharply as economists raised their bets that Greece will default on its June 5 debt repayment to the […]

BOE Suggesting Interest Rates Won’t Rise This Year - May 14, 2015 11:28

So, the big news is that the Bank of England reduced its growth forecasts for this year and next, and in so doing appeared to indicate that interest rates won’t rise until this time next year. The cautionary statement from BoE Governor Mark Carney had a detrimental impact on the Pound against most of the […]

Interest Rate Announcement Not Expected To Impact - May 11, 2015 9:34

Sterling retained its strength against the majors on Friday as markets reacted to the fact that not only had David Cameron’s Conservative party secured a much larger proportion of the vote than expected, but they had actually gained enough seats to form an outright majority government. The news boosted the Pound because it removed the […]

GBP Rate Gains As Conservatives Look Likely To Win Election - May 8, 2015 10:04

Demand for Sterling surged last night when the first unofficial exit poll showed that the Conservatives were likely to have won 316 seats out of a possible 650. The poll put Labour on 239, the Scottish National Party on 58, the Liberal Democrats on 10 and the United Kingdom Independence Party on two. The possibility […]

GBP Euro Exchange Rate Falls Into Election Day - May 7, 2015 10:49

British second quarter growth prospects were given a massive boost yesterday when Markit Economics announced that the dominant UK service sector performed at its strongest level for eight months in April. Smashing expectations of 58.5, the PMI printed at an impressive 59.5 as a surge in new business caused firms to continue hiring at a […]