Latest 10 news items tagged Economy from our financial blog...
British Pound to US Dollar Exchange Rate Near New 2-Level Best as Sentiment Continues to Improve
Published: 21 Jan at 5 PM 2021
The Pound rally has been gathering steam while risk aversion and US economic concerns weigh on the US Dollar, making it easier for the British Pound to US Dollar (GBP/USD) exchange rate to trend near its best levels in years.
Since opening this week at the level of 1.3585, GBP/USD has been trending higher save for a brief dip near the beginning of the week.
Last night, GBP/USD touched on a high of 1.3742. This was the best level for the pair in over two and a half years, since the first half of 2018.
At the time of writing on...
British Pound to US Dollar Exchange Rate Flounders as Markets Digest Political Chaos
Published: 7 Jan at 5 PM 2021
Amid the tail-end of a chaotic week for global markets, the British Pound to US Dollar (GBP/USD) exchange rate has steadied. Investors continue to digest the events of the past few days, but the US Dollar may strengthen if upcoming data impresses.
After opening this week at the level of 1.3676, GBP/USD briefly edged higher and touched on a high of 1.3697. This was the best level for GBP/USD in two and a half years, since mid-2018.
Since then the pair has been trending with a downside bias. GBP/USD has been floundering within a...
Pound to Euro (GBP/EUR) Exchange Rate Dips as Brexit Fears Weigh on UK Market Optimism
Published: 24 Nov at 4 PM 2020
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...
GBP/USD Exchange Rate Rises as Covid-19 Vaccine Hopes Boost UK Economic Mood
Published: 10 Nov at 5 PM 2020
The Pound rose against the US Dollar today following positive news that the UK could receive up to 10 million Covid-19 vaccine as early as the end of the year.
UK Health Minister Matt Hancock was confident that vaccines could be rolled out by December.
The British Medical Association commented:
‘Vaccine availability will be limited to begin with, meaning only small numbers of vaccines may be given in December with most vaccinations taking place in early 2021.’
Consequently, UK markets are now more hopeful that the UK...
Euro to US Dollar Exchange Rate Sees Heavy Fluctuations with US Election Still Far from Certain
Published: 4 Nov at 5 PM 2020
The Euro to US Dollar (EUR/USD) exchange rate has seen intensifying volatility and fluctuations since last night, as the results of the 2020 US Presidential Election turn out to be far less clear than expected.
Since opening this week, EUR/USD been trending with a largely downside bias as investors continue to avoid risks. EUR/USD opened the week at the level of 1.1676 and has touched on lows of 1.1617. This is the worst level for the pair since July.
EUR/USD has attempted to gain on hopes that the election result will become...
Pound to US Dollar (GBP/USD) Sinks as Fed Announces 'Unlimited QE' Program
Published: 23 Mar at 5 PM 2020
The Pound to US Dollar (GBP/USD) exchange rate fell by over -1% after the US Federal Reserve launched an ‘unlimited’ quantitative easing program to boost the US economy. The pairing is currently fluctuating around $1.146.
Chris Rupkey, the Chief Financial Economist at MUFG Union Bank, commented: “Fed policy is shifting into a higher gear to try to help support the economy which looks like it is in freefall at the moment.”
“The central bank is shifting from being not just the lender of last resort, but now it is the buyer...
Pound to Euro Rises, UK Hopes to 'Turn the Tide' of the Coronavirus in 12-Weeks
Published: 20 Mar at 5 PM 2020
The Pound Euro (GBP/EUR) exchange rate recovered from its 11-month lows against after the Bank of England (BoE) cut its interest rates to an all-time low of 0.1%. The Bank also announced £200bn of money creation to help the UK’s economy throughout the coronavirus pandemic.
Tom Stevenson, an Analyst at Fidelity International, commented ‘Britain is now a whisker away from the negative interest rate club.’
‘Rates have never been this low in the more than 300-year history of the Bank of England. Purchases of government and...
Pound US Dollar (GBP/USD) Plummets to Lowest Level Since 1985
Published: 18 Mar at 5 PM 2020
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,...
US Dollar South African Rand (USD/ZAR) Sinks as Fed Rate Cut Odds Rise
Published: 10 Mar at 3 PM 2020
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...
British Pound to Japanese Yen Exchange Rate Nears Monthly Best as Risk-Sentiment Returns
Published: 19 Feb at 4 PM 2020
Despite the Pound tumbling against most major currencies today, the British Pound to Japanese Yen (GBP/JPY) exchange rate continued to climb. While the pair has struggled to hold its best levels, investors are selling safe haven currencies like the Japanese Yen due to coronavirus developments and this is making it easier for the pair to avoid losses.
Following last week’s solid GBP/JPY advance from 141.43 to 143.23, GBP/JPY is continuing to advance this week.
GBP/JPY briefly dipped on Monday, but since then has been advancing...