Month: September 2017

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Euro (EUR) Exchange Rate Falls after German Federal Election as Merkel Loses Support
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Euro (EUR) Exchange Rate Falls after German Federal Election as Merkel Loses Support

The Euro tumbled against a basket of major currencies on Monday morning following Sunday’s election. The Euro to US Dollar (EUR/USD) exchange rate slipped by around 0.5% to reside below the 1.19 threshold before making a small recovery. Political uncertainty can create dramatic currency movements, and Sunday’s election means Chancellor Angela Merkel has to make...

US Dollar (USD) Bounce Temporary after Fed Balance Sheet Announcement
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US Dollar (USD) Bounce Temporary after Fed Balance Sheet Announcement

The US Dollar to Pound Sterling (USD/GBP) and US Dollar to Euro (USD/EUR) exchange rates enjoyed a rebound on Wednesday after the Federal Reserve announced it would begin its balance sheet reduction in October. The Dollar was up by around 0.7% versus the Pound, and 0.9% against the Single Currency. For a moment, it looked...

GBP/USD Hits Highest Level Since Brexit Referendum; US Retail Sales Disrupted by Hurricane Harvey
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GBP/USD Hits Highest Level Since Brexit Referendum; US Retail Sales Disrupted by Hurricane Harvey

The Pound to US Dollar (GBP/USD) exchange rate broke through the 1.36 barrier on Friday, the highest level since the Brexit referendum on hopes of interest rate hikes. Some industry experts forecast the possibility of several interest rate increases. Scotiabank economist Alan Clarke commented: ‘We doubt it would be the first of several hikes. Our...

GBP/USD Hits One-Year High as BoE Rate Hike Expectations Increase
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GBP/USD Hits One-Year High as BoE Rate Hike Expectations Increase

The Pound Sterling surged to a fresh one-year high versus the US Dollar (GBP/USD) at 1.3337 on Thursday as investors priced in the possibility of the Bank of England’s (BoE’s) first interest rate rise in almost a decade. While Sterling has regained approximately half of its strength back following the Brexit referendum, it still resides...

GBP/USD Falls from One-Year High as UK Wage Growth Disappoints
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GBP/USD Falls from One-Year High as UK Wage Growth Disappoints

The Pound relinquished some of its gains against the Euro (GBP/EUR) and the US Dollar (GBP/USD) on Wednesday after UK wage growth data failed to impress markets. Average Weekly Earnings held steady at 2.1% in July, defying forecasts for some small expansion. The wage data follows a rise in inflation on Tuesday’s session. Industry expert...

GBP/USD Above 1.30 as Sterling Enjoys Technical Rally
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GBP/USD Above 1.30 as Sterling Enjoys Technical Rally

The Pound to US Dollar (GBP/USD) exchange rate has managed to climb significantly, with Sterling becoming one of the best-performing majors in the past 24 hours. While last week’s Brexit negotiations failed to shed any light on the matter, the Pound’s short-term appeal increased to investors, and the British currency was able to make notable...

GBP/EUR Faces Headwinds as UK Service Sector Stumbles
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GBP/EUR Faces Headwinds as UK Service Sector Stumbles

The Pound has been offered little support from economic data today after it came to light that the UK service sector stumbled in August. This is an important UK ecostat in the world of currency as the sector makes up roughly 80% of Britain’s Gross Domestic Product (GDP) growth. Markit’s August Services Purchasing Managers’ Index...