Fri, February 07, 2025

The Pound is under pressure against the euro

The pound collapsed on Monday. What caused its decline?

Despite a lack of news to justify the moves, the British Pound is under significant selling pressure in midweek trade.

The UK public sector borrowing data came in worse than expected, but the charts show almost no impact on the Pound after their release.

By December 21, the Pound was down three-quarters of a percent against the dollar by midday.

Losses were against all G10 peers. This suggested a clearly GBP-centric mood despite the lack of discernible UK data or news to explain the moves.

Oddly, the losses come despite global stock markets looking upbeat, implying that investor sentiment is relatively buoyant.

The Pound continues to be especially sensitive to global investor sentiment, and thus the broader context is, if anything, supportive.

Bond markets show that yields are rising, but this is true for all other major economies.

Indeed, the UK news has been undeniably positive, with gas prices falling to their lowest levels since June, implying the reversal of an impressive summer spike.

When writing, the Pound to euro exchange rate had fallen to 1.1399, its lowest in a month, bringing euro payment rates at high-street banks to around 1.1175. Competitive holiday money and cash providers have been seen quoting around 1.12833, and competitive money transfer providers have been seen quoting around 1.1369.

The Pound Dollar exchange rate is currently at 1.2100, banks are offering around 1.1861, good vacation and cash providers are at 1.1979, and good payment providers are at 1.2067.

Due to a lack of clear drivers, the Pound’s swings may continue, with the possibility of a reversion higher in the coming days.

If forced to make a directional call, it appears that the downside is currently easier to achieve than the upside.

YOU MAY ALSO LIKE

Число заявок на пособие по безработице в США сократилось на 2 000, что свидетельствует о стабильности рынка труда в условиях высоких ставок, а дальнейшие действия ФРС будут иметь решающее значение для экономической стабильности.

Quick Overview Unemployment Claims Dip: Jobless claims fell by 2,000 to 231,000,

Стерлинг достиг отметки $1,32: рост, риски и перспективы

Quick Look Sterling’s Surge: The British pound has surged to a 2.5-year

Доу Джонс вырос на 243 пункта, установив новый рекорд на отметке 41 335,05

Quick Overview Dow Jones Hits Record: The DJIA rose by 243.63 points,

COMMENTS

Leave a Comment

Your email address will not be published. Required fields are marked *

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spreads
    Sending
  • Trading Instument
    Sending

BROKER NEWS

BROKER NEWS