Currency News: UK daily forex news and forecasts

After hitting 31-month highs just above 1.2100 on Monday, the Pound to Euro (GBP/EUR) exchange rate has corrected to 1.2070, but found buyers near 1.2050. Overall yield spreads will continue to underpin GBP/EUR, especially if the Bank of England maintains a cautious stance on lowering interest rates. The Euro also remains vulnerable due to fears over a more aggressive US trade stance, especially with on-going unease over...

The Pound US Dollar (GBP/USD) exchange rate fell on Tuesday, striking a fresh three-month low, following the UK’s latest labour market report. The Pound (GBP) declined on Tuesday following the UK's latest labour market report, which revealed a sharper-than-expected increase in unemployment. The UK unemployment rate rose from 4% to 4.3% in the third quarter, surpassing predictions of a smaller increase to 4.1%. This...

The Pound to Euro (GBP/EUR) exchange rate moved within a narrow range on Tuesday as investors reviewed the latest UK unemployment figures and Germany’s economic sentiment index. The Pound (GBP) found limited support on Tuesday morning after the release of the latest UK jobs report disappointed GBP investors. According to data from the Office for National Statistics (ONS), UK unemployment rose sharply to 4.3% in...

The Pound to Dollar (GBP/USD) exchange rate has dipped to 1.2875 from above 1.2900 on Monday amid another round of dollar strength. In the short term, traders will focus on 12-week lows near 1.2835 posted in immediate reaction to Trump’s victory last week. As far as the UK is concerned, the latest labour-market data is due on Tuesday with expectations that the headline annual increase in average earnings will tick...

The Pound to US Dollar (GBP/USD) exchange rate weakened at the beginning of this week as markets priced in a likely Republican control of all three branches of the US government. GBP/USD was trading near $1.2898, approximately 0.2% lower than Monday’s opening levels. The US Dollar (USD) climbed broadly higher on Monday as anticipation grew that Donald Trump’s Republican party might secure a majority in the House...

The Pound Euro (GBP/EUR) exchange rate climbed on Monday, as the US election results continued to boost the US Dollar (USD) and thereby pressure the Euro (EUR). At the time of writing, GBP/EUR traded at €1.2074, up around 0.2% on the day. The Euro faced challenges on Monday due to its strong negative correlation with the US Dollar, which put it under pressure. After Donald Trump's victory in the US presidential...

ING has upgraded its dollar forecasts following the US Presidential election and now has an end-2025 Pound to Dollar (GBP/USD) exchange rate forecast of 1.24. MUFG added; “the bullish implications for the US dollar from a Trump victory and likely Red Sweep will cap further upside for cable beyond the 1.3000-level.” According to ING; “A Trump win is clearly bullish for the dollar – but the challenge will be in...

Foreign exchange analysts at MUFG expect that the Pound to Euro (GBP/EUR) exchange rate will strengthen towards 1.22. The consensus view is that a slow pace of Bank of England rate cuts, allied with difficulties in the Euro-Zone and the threat of trade stresses under a second Trump Presidency, will undermine the Euro and support GBP/EUR. MUFG commented; “With yields in the UK set to remain at relatively higher levels...

The Pound to US Dollar (GBP/USD) exchange rate rose on Thursday as markets responded to the Bank of England’s (BoE) latest interest rate decision. The Pound (GBP) appreciated on Thursday after the BoE announced its latest interest rate decision. As anticipated, the BoE implemented a 25bps rate cut following its November meeting, marking the second reduction this year. However, there was some dissent amongst...

The Pound Euro (GBP/EUR) exchange rate traded largely flat on Thursday following the Bank of England’s latest interest rate decision. The Pound (GBP) saw a varied trading day on Thursday following the Bank of England's (BoE) latest interest rate decision. It lost ground against higher-risk currencies but gained against most others whilst seeing little change against the Euro (EUR). The BoE cut interest rates from 5%...