GBP’s post-election rally continued yesterday as traders turned their attention to Wednesday’s quarterly inflation report from the Bank of England. As expected, the UK central bank announced yesterday that it was not to raise interest rates in May. The BoE has now maintained an ultra-low benchmark borrowing rate of 0.50% for over six years. However, recent remarks from policymakers suggest that officials at the bank anticipate a surge in price pressures in the second half of the year, and subsequently it is possible that Wednesday’s inflation report will hint at …

GBP exchange rate was stronger against the Euro and several other major peers as the currency continued to receive support from Friday’s surprise general election result. Prime Minister David Cameron’s announcement on Sunday that Scotland will not be given another independence referendum eased market fears over a breakup of the UK. Investors will now be looking ahead to the release of the latest Bank of England quantitative easing and interest rate decisions.
US Dollar
The US Dollar firmed against most major peers as investors favoured the safe haven currency on …

The Pound exchange rate strengthened against the Euro on Friday as it became clear that the Conservatives were on course to form the next UK government. Against the US Dollar, the Pound surged to its best level since 2009. The vote saw the Liberal Democrats decimated while the Labour Party performed worse than predicted. Domestic house price data also offered support as prices were shown to have risen strongly in April. If it is confirmed that the Conservatives will be able to form a majority government, we could see Sterling …

The Pound exchange rate weakened sharply to the 1.33 level against the Euro and fell against its other major peers as investors focused upon the general election. The vote is set to be the most unpredictable in decades and with the outcome far from certain, the markets are concerned over potential political uncertainty negatively influencing the UK economy.
US Dollar
The US Dollar was stronger against the weakened Pound, but was trading at a 2-month low against the Euro and was weaker against most other major peers. The ‘Greenback’ remained under …

The Pound Sterling softened against the Euro after news broke that Greece met the deadline for repaying €200 million to the International Monetary Fund (IMF). The UK currency was also under pressure from expectations that today’s UK Services PMI will come in below expectations. Against the US Dollar, the Pound held gains as poor trade data weighed on the ‘Greenback’.
The US Dollar remained under pressure against the majority of its peers due to Tuesday’s mixed data releases. According to the Washington-based Commerce Department, the US trade deficit widened …

Sterling suffered a series of sharp losses against its most-traded currency peers at the end of last week’s session as investors reacted acerbically to data showing that British manufacturing activity dulled in April.
Markit Economics’ PMI report detailed that factory output slowed significantly from a negatively revised 54.0 to 51.9 last month. Traders had expected a much higher score of 54.6 and subsequently took to selling the Pound in response to the underwhelming score. The headline index was driven lower by the sharpest dip in new orders for over two …