Perhaps surprisingly, GBP has emerged as the best-performing G10 currency this year. The main driver of GBP strength, alongside dollar weakness, has been the Bank of England’s stance on monetary policy. The central bank was generally bullish last...

The Purchasing Managers Indices were released across the board last week. In the UK, markets expected a slight improvement from the Services data, which was anticipated to come in at 53.2 (above the critical level of 50). However, the data revealed a stronger upturn in private sector output than expected, landing at 53.8. The UK’s Manufacturing PMI is still...

The trend towards low volatility continued in the currency markets last week as we saw one of the lowest weeks of market movement for G10 pairings so far this year. GBP/EUR remained at rangebound levels slightly above 1.17, and GBP/USD also stayed within its current position, fluctuating between...

Last week, there was little volatility between the sterling and euro, with the exchange rate range fluctuating just 40 pips (0.004 cents) between its peak and trough. Towards the end of the week, we saw a very gradual decline from the pound, which could point to some potential concerns surrounding the UK budget, which Chancellor Jeremy Hunt will...

The Bank of England is meeting for its second rate decision of the year at midday this Thursday 21st March. Markets are currently predicting a less than 1% chance of a rate cut, making it very unlikely. Last time round is for this split to repeat, although some expect the vote to fall closer to a unanimous outcome, forecasting 0-8-1. If we do see this more dovish split...

Last week was quiet regarding UK data releases, but with the Bank of England scheduled to meet on Thursday, this week could see more movement in the pound. Markets expect the Bank of England to follow the Federal Reserve and hold rates when they meet on Thursday, May 9th. They anticipate only a...

The Bank of England held rates steady as expected last Thursday. Interest rates have remained at the 16-year high of 5.25% over the previous six meetings as the central bank's monetary policymakers wait for the threat of high inflation to diminish.Governor Andrew Bailey's comments were described as more optimistic, hinting at a possible rate cut in June. He stated that a cut at the...

Sterling finished on a high at the end of May, as we saw GBP/EUR touch a peak of 1.1780, representing the highest levels since August 2022. However, this still suggests a resistance level, as the pairing reached very similar levels last summer and could indicate it needs a significant market event to push past this psychological position. The pound was up against most other major currencies, including the...

It was great to see the England football team's strong start at the Euros last night! Outside of the usual moral boost successful sporting events have, according to a report by Voucher Codes, the tournament is expected to provide a £2.75bn boost to the UK economy, from food and drink sales to electricals, souvenirs, and garden cooking. Last week was eventful - regarding both currency volatility and the...

England woke up deflated this morning, having almost secured a possible bank holiday with their first Euros win after Spain narrowly clenched the lead and the tournament. In more positive news, the UK has continued to see better economic recovery, with last Thursday's Q2 GDP, which was previously forecast at 0.2%, came in higher at...