• About Us
  • Authors
  • Currency Charts
  • Live Exchange Rates
  • Contact Us

Exchange Rate Forecast

Exchange rate forecasts and foreign currency news

  • British Sterling
  • Euro
  • US Dollar
  • Australian Dollar
  • Canadian Dollar
  • Brexit News
You are here: Home / British Sterling / Sterling exchange rates continue to strengthen

Sterling exchange rates continue to strengthen

January 26, 2018 by Thomas Holian

Sterling exchange rates continue to strengthen

We have seen some huge spikes for Sterling exchange rates during the course of this week with the Pound hitting 18 month highs to buy US Dollars and breaking past pre-referendum highs.

The Pound has also hit the best rate to buy Euros in 9 months as it appears as though the tone surrounding Brexit is looking a lot more positive recently. The phase 2 of the Brexit negotiations are due to begin in March and this time I think we could actually get a little bit close to a resolution and if this does happen I expect the Pound to make gains against all major currencies.

Inflation levels in the UK also remain above the Government’s target and the Bank of England primary objective is to maintain economic growth as well as control inflation levels. Therefore, I think we could also see interest rates on the increase towards the end of the year if the current trend continues.

German Chancellor Angela Merkel has suggested recently that she wants Britain to maintain a close relationship with Germany and the comments from both the Dutch and Spanish finance ministers were also similar which has helped lift the value of the Pound against all major currencies.

However, the Euro has now recovered some of its losses yesterday against the Pound after President of the European Central Bank Mario Draghi left interest rates unchanged at yesterday’s monthly meeting. The general feeling is that the current QE programme will be coming to a close soon and this is in part one of the reasons for the Euro strengthening against the Pound yesterday. Draghi also commented that volatility in the exchange rate is ‘a source of uncertainty’ and that it would ‘require monitoring’.

UK GDP figures are due out at 9:30am this morning so keep a close eye out on the data release as this is likely to have a big impact on Sterling.

Filed Under: British Sterling Tagged With: Bank of England (BoE), Brexit, GBPEUR, GBPUSD, Pound Sterling strength, UK Inflation

The information on this website is provided for information purposes only. It does not constitute advice to any person on any matter. Every reasonable effort is made to ensure that the information is accurate and complete but we assume no responsibility for and offer no warranty with regard to the same.

Recent Posts

  • Sterling finds support but unlikely to make any significant impact in the coming days May 9, 2018
  • US Dollar hits 5 month high against Sterling May 2, 2018
  • Sterling exchange rates at the mercy of political developments May 1, 2018
  • Pound weakens as political uncertainty once again raises its head May 1, 2018
  • Will Mario Draghi’s speech impact GBP/EUR? April 26, 2018

Live Exchange Rates

Archives




Copyright © 2021 — Currency.co.uk • All rights reserved. • Exchange Rate Forecasts • Privacy Policy •

We use cookies to ensure that we give you the best experience on our website. By using this site you agree to receiving cookies.I agreeRead Privacy Policy