Inflation News

The Pound to Australian Dollar exchange rate held steady today following the release of the latest UK factory output and orders data, which surged at its quickest rate since 1974. The pairing is currently fluctuating around AU$1.86. Rain Newton-Smith, the chief economist at CBI, however warned: ‘Businesses have already endured a prolonged period of inhibited demand, so it is vital that government now takes all possible steps to protect this resurgence in activity.’ Today also saw the Bank of England’s (BoE) deputy governor,...

The Pound Euro exchange rate fell by -0.8% today as worker shortages and England’s rising unemployment crisis weighs on confidence in the nation’s economy. The pairing is currently fluctuating around €1.16. GBP suffered following figures from the jobs websites Adzuna and Indeed showing that hospitality, transport, care, and manufacturing sectors had suffered huge hiring challenges. The Organisation for Economic Co-operation and Development (OECD) commented: ‘As economies roll out their recovery plans in coming months,...

The Pound Euro exchange rate fell by -0.5% today after the Bank of England (BoE) released a surprisingly dovish statement about UK growth and inflation, which it said would likely be ‘temporary’. The pairing is currently fluctuating around €1.16. Sterling struggled today after the BoE predicted that inflation is likely to rise above 3% as the UK’s economy continues to gather pace. However, the Bank also said that the spike in inflation was likely ‘transitory’. Members of the Monetary Policy Committee (MPC)...

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 Euro exchange rate fell by -0.2% today as the Indian variant of Covid-19 has weakened confidence in the UK’s ability to recover its economy in the months ahead. The pairing is currently fluctuating around €1.15. Sterling traders have become increasingly jittery over the prospect of a delay in the Government’s efforts to ease lockdown restrictions. The new strain of Covid-19 – the Indian variant – has raised concerns over increased levels of transmissibility of the virus. As a result, UK markets are becoming more...

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...

Despite Canadian Dollar weakness earlier in the week, the currency experienced a fresh surge in demand after yesterday’s Bank of Canada (BoC) policy decision and the British Pound to Canadian Dollar (GBP/CAD) exchange rate plummeted again. Since opening this week at the level of 1.7305, GBP/CAD has been trending with an upside bias as the Canadian Dollar continued to sold back from recent highs. GBP/CAD surged earlier in the week, and on Tuesday night touched on a high of 1.7584. This was the best level for the pair in a month....

While the Pound struggled to mount much of a recovery against other major currencies this week, the Pound to US Dollar (GBP/USD) exchange rate has been gradually advancing. The Pound is benefitting from weakness in the US Dollar. Last week saw GBP/USD tumble from the level of 1.3830 down to 1.3705, as the Pound was sold in a bout of profit-taking. After touching near a monthly low at the beginning of this week, GBP/USD has been trending with an upside bias again. The Pound is taking advantage of the US Dollar’s weakness despite...

The past week has seen both the Pound and US Dollar sold from their best levels, but the British Pound to US Dollar (GBP/USD) exchange rate is tumbling as the Pound was hit particularly hard by a shift in market appetite. Both currencies have seen strong movement in recent weeks, leading to GBP/USD volatility. Last week, GBP/USD dipped before ultimately advancing from the level of 1.3790 to 1.3830. This week’s movement has been even more volatile. GBP/USD touched on a fortnight best of 1.3918 earlier in the week, before tumbling...