Forex News

The Pound Euro exchange rate fell by -0.3% today following news that the UK-EU financial services equivalence deal ‘has not happened’, according to UK Chancellor Rishi Sunak. This left the pairing trading around €1.16 at the time of writing. Sterling has suffered from growing concerns over tensions between the UK and the EU, despite the Chancellor’s reassurances that Europe will remain a ‘close partner and ally’. ITV business and economics editor Joel Hills commented: ‘Chancellor confirms that UK has given up...

The Pound Euro exchange rate rose today despite the latest Eurozone inflation gauge for May confirming forecasts and rising by 0.2%. The pairing is currently trading around €1.16. Analysts at Reuters commented: ‘A sharp spike in energy prices and more expensive services boosted euro zone consumer inflation in May as expected … taking the rate of price growth just above the European Central Banks target.’ However, the Euro has struggled from a weaker-than-expected Eurozone wage growth figure, which slowed to 2.2% in the...

The Pound Euro exchange rate held steady today ahead of the European Central Bank’s (ECB) interest rate decision, which is expected to remain at 0%. The pairing is currently trading around €1.15. The Euro failed to gain on the Pound (GBP) with Eurozone markets speculating over whether the ECB will dial back its Pandemic Emergency Purchase Programme (PEPP) in light of the improving outlook for the bloc’s economy thanks to intensive vaccination programmes. Any signs of a more bullish ECB today would boost the Euro to Pound...

The Pound New Zealand Dollar (GBP/NZD) exchange rate fell by -0.2% despite the Reserve Bank of New Zealand’s (RBNZ) hawkish bias this week by forecasting a possible rate hike next year. The pairing is currently trading around NZ$1.93. The New Zealand Dollar’s gains against the Pound – which shot up by 1% yesterday – proved to be short-lived as New Zealand-China trade relations continue to show signs of souring. New Zealand’s foreign minister Nanaia Mahuta warned about growing tensions between New Zealand and Beijing,...

The Pound Japanese Yen exchange rate fell by -0.2% today despite growing confidence in the UK economy after GDP data for March rose by 2.1%. The pairing is trading around ¥153.79 at the time of writing. Sterling benefited yesterday as the latest UK growth data highlighted that the nation’s economy had improved from the Government’s successful rollout of Covid-19 vaccines. However, the UK economy struggled in the first quarter of this year, falling by 1.5%. UK Chancellor Rishi Sunak was however confident about March’s...

The Pound Euro exchange rate fell by -0.3% today after the single currency received a boost from encouraging Eurozone economic data. Today saw the Eurozone’s latest retail sales report for March beat forecasts and rise by 12% month-on-month. This has left the pairing currently trading around €1.15 at the time of writing. Today also saw German factory orders jump for their third month in a row, as the Eurozone’s powerhouse economy’s manufacturing sector continues to improve. Analysts at Bloomberg commented: ‘Demand for...

The Pound Australian Dollar exchange rate rose today following yesterday’s release of the latest Australian inflation gauge. The nation’s inflation figure rose less than expected, dampening confidence in Australia’s economic recovery. The pairing is currently trading around AU$1.79. Sarah Hunter, chief economist for BIS Oxford Economics, commented: ‘Core inflation is likely to remain weak for some time. Wages growth remains subdued and demand for many services is still recovering to pre-pandemic levels, which will limit any...

The Pound to Euro (GBP/EUR) exchange rate fell today after the Bank of England’s (BoE) Governor, Andrew Bailey, commented that Brexit could cause more damage to the British economy than Covid-19. As a result, GBP investors have become increasingly jittery as UK-EU trade talks have failed to emerge with any certain signs of a post-Brexit trade deal. Mr Bailey highlighted the difficulties of adjusting to a new trading relationship, saying: ‘It takes a much longer period of time for the real side of the economy to adjust to the...

The Pound US Dollar (GBP/USD) plummeted by over -2% and is currently trading around $1.17, its lowest level since 1985. Traders have flocked to the safe-haven refuge of the US Dollar (USD) today with the ongoing coronavirus crisis threatening to push the global economy into a recession. Thomas Flury, a Currency Strategist at the Swiss Bank UBS, explains: “The main reason for dollar demand is liquidity concerns: In volatile times, companies and investors need dollars to settle transactions.” “As long as these concerns persist,...

The US Dollar South African Rand (USD/ZAR) exchange rate fell by -0.7% today, with the pairing currently trading around R15.920 as the ‘Greenback’ continues to suffer from falling US bond yields and fears of another US Federal Reserve rate cut. Michael Gapen, the Head of US Economics Research at Barclays, commented that the ‘likelihood of getting a zero [per cent interest rate cut from the Fed] is higher than the risk of a recession’. Mr Gapen also added that there is ‘probably a low risk of a recession, a 1 in 4 maybe at...