EURGBP extended gains for the second successive session, trading around 0.8420 on Thursday. The Euro remains strong as the European Central Bank decided at its July Monetary Policy Meeting to maintain its main refinancing rate at 4.25%, as expected. The ECB’s deposit facility rate also remains unchanged at 3.75%. Traders are now looking to further … Read more
The EURGBP cross remains on the defensive around 0.8425 during the early European session on Thursday, trading with mild losses after the monthly UK Gross Domestic Product data. The UK economy grew more than expected in May after stagnating in April, with the GDP expanding at 0.4% MoM. This figure beat market expectations of 0.2% … Read more
The EURGBP pair is trading with mild losses near 0.8475 in the early European session on Friday. The Pound Sterling is edging higher as the Labour Party led by Keir Starmer appears to be headed for a huge majority in the 2024 UK election, Reuters reported on Friday. Later in the day, Eurozone Retail Sales for … Read more
The EURGBP pair is extending its decline to near 0.8465 in early European trading on Thursday. The Euro is edging lower as the softer Eurozone HICP inflation report prompted the expectation of interest rate cuts from the European Central Bank, while market players will closely monitor the UK general elections on Thursday. The upcoming UK … Read more
Investors are revising strategies to capitalise on the potential strengthening of the pound (GBP) in the wake of a Labour victory in the UK election on July 4 and increasing political uncertainty in Europe, according to the CEO of one of a leading independent financial advisory and fintech. A Bloomberg survey on Monday suggested that … Read more
The euro is experiencing a third successive decline against the pound sterling, with the EURGBP pair rising sharply at 0.8531, notching a 0.26% gain. Eurozone inflation data, both headline and core HICP, exceeded forecasts, potentially impacting the timing of the ECB’s easing cycle. Spain’s HICP data came in higher than expected at 3.8% YoY, while Germany’s HICP harmonised inflation rate increased to 2.8% YoY. The EU’s block figures also rose, indicating unexpected inflation pressures that may lead the ECB to reconsider its dovish stance.
The EURGBP cross traded lower around 0.8620 on Tuesday following mixed PMI figures from the UK and Eurozone.
Britain’s economy entered a shallow recession last year, with GDP shrinking by 0.1% in the third quarter and 0.3% in the fourth. The economy is expected to grow by just 0.25% this year, with inflation moving towards the point where the Bank of England can start cutting rates. Household real disposable income grew by 0.7%, prompting consumers to potentially increase spending and support the economy. The current account deficit in the fourth quarter was 21.18 billion pounds, equivalent to 3.1% of GDP.
– The pound was stable on Monday, close to its lowest level in a month, due to increased bets that the Bank of England (BoE) will cut interest rates in June.
– Sterling was flat at .2608, near the one-month low of .2576 from the previous Friday.
– The euro was slightly changed against the pound at 85.79 pence, down from a two-month high of 86.02 pence on Friday.
– The pound fell approximately 1% against the dollar last week after the BoE maintained interest rates at 5.25% and Governor Bailey indicated that inflation is trending towards allowing for interest rate cuts.
– Bailey’s comments to the Financial Times about rate cuts being “in play” this year further decreased the pound’s value.
– Market traders now estimate a roughly 75% chance of a BoE rate cut by June, an increase from about 35% at the beginning of the previous week, influenced by data showing faster-than-expected inflation decline.
– Chris Turner from ING suggested that the BoE’s dovish communications could lead to the euro rising to 87 pence against the pound in the next month.
– In contrast, stronger-than-expected U.S. economic and inflation data has led to reduced expectations for a Federal Reserve rate cut in June, enhancing the appeal of American bonds and supporting the dollar.
– The dollar index was approximately flat at 104.38 on Monday, after a 1% increase the previous week.
– Euro-Sterling was trading below the mid-0.8500s during early European trading on Tuesday.
– The EURGBP cross was trading around 0.8540, gaining 0.16% on the day.
– The UK ILO Unemployment Rate increased to 3.9% in the three months to February from 3.8%.
– The number of people claiming jobless benefits in the UK rose by 16,800 in February.
– The UK Employment Change was -21,000 in January.
– The German Consumer Price Index (CPI) for February was 0.4% MoM and 2.5% YoY.
– The German Harmonized Index of Consumer Prices (HICP) for February was 0.6% MoM and 2.7% YoY.
– Upcoming data releases include the UK monthly GDP, Industrial Production, Manufacturing Production, and Trade Balance for January.