Latest news with #GBPEUR
CNBC
25-06-2025
- Business
- CNBC
What's next as the British pound hits its highest in more than three years?
The British pound is hovering at its highest level in more than three years — and analysts are divided on the potential for further upside. Britain's currency was last seen trading around the $1.36 mark on Wednesday morning in London. It marked a slight drop from Tuesday, when sterling hit its highest level since January 2022. So far this year, the pound has surged 8.7% against the greenback. Against the euro, however, sterling is down 2.9% year-to-date. It was last seen trading marginally higher against the euro zone currency, with one pound buying around 1.173 euros. According to Janet Mui, head of market analysis at RBC Brewin Dolphin, much of the pound's upward trajectory is actually more to do with underlying dollar weakness than faith in sterling itself. "The relative strength of the pound has been more of a weak U.S. dollar story this year," she told CNBC by email on Wednesday. U.S. President Donald Trump's unpredictable trade policies shook confidence in American assets earlier this year, which in turn has sparked concerns in markets about de-dollarization. Paul Jackson, global head of asset allocation research at Invesco, said sterling was on a recovery journey from the "extreme low" seen in the aftermath of former British Prime Minister Liz Truss's so-called mini budget, which sparked a severe sell off of the pound and U.K. government bonds in 2022. He agreed, however, that much of the movement this year was attributable to dollar weakness, pointing out sterling's simultaneous depreciation against the euro. "I would expect that pattern to continue in the future, with the dollar weakening along with the US economy (and investor doubts about US fiscal and tariff policies), while the euro could strengthen on optimism about the implications of the coming fiscal boost (especially in Germany)," Invesco's Jackson said. He argued that the ECB had likely completed most of its monetary easing for the current cycle, whereas the Bank of England and the Federal Reserve "have a lot of catching up to do." "In 12 months, I would expect GBPUSD to be around 1.40 and GBPEUR to be around 1.15 (currently 1.17)," Jackson added. Jackson's forecast represents a roughly 2.9% premium from current exchange rates against the dollar. RBC Brewin Dolphin's Mui suggested that in the coming months, the outlook for the British pound is not overly compelling — but noted that geopolitical developments could catalyze further upward movements in the longer term. "In the near-term, further upside for the pound may be limited due to softer UK economic momentum and more scope for the Bank of England to cut rates," she said. "Looking ahead, one potential catalyst for the pound could be improved relations with the EU, particularly if it translates into more concrete action over time."
Yahoo
03-06-2025
- Business
- Yahoo
Pound edges lower following economic growth forecast cut
The pound dipped nearly 0.2% against the dollar (GBPUSD=X) to trade at $1.3519 on Tuesday, after the Organisation of Economic Cooperation and Development (OECD) cut its forecasts for growth in 2025 and 2026. The OECD warned that the economic outlook was becoming "increasingly challenging" and predicted that that global gross domestic product (GDP) growth will slow from 3.3% in 2024 to 2.9% this year and in 2026. The organisation said that was based on the 'on the technical assumption that tariff rates as of mid-May are sustained despite ongoing legal challenges." "The slowdown is concentrated in the United States, Canada and Mexico, with China and other economies expected to see smaller downward adjustments," it said. For the UK, the OECD lowered it economic growth forecast to 1.3% this year, from the 1.4% it predicted in March. It expected growth to slow further in 2026 to 1%, which was also lower than a previous forecast of 1.2%. Russ Mould, investment director at AJ Bell (AJB.L), said that while the OECD's global growth forecast cut was "only a small revision ... it's still enough to cause investors some digestion as they consume their morning news." "The 90-day pause on tariffs has just over a month before expiration, meaning the pressure is on countries to do deals with the Trump administration," he said. "Reports suggest that [US president Donald] Trump wants best offers on trade negotiations by Wednesday, perhaps to avoid any last-minute rush or stalemate situations." Read more: FTSE 100 LIVE: Stocks head lower as global growth set to slow this year amid Trump tariffs On Monday, China hit back at Trump's claim it had violated the temporary trade agreement between the two countries, while the EU said it opposed the president's doubling of tariffs on steel and aluminium imports. The dollar index ( which pits the greenback against a basket of global currencies, ticked up 0.2% at 98.91. It has lost about 0.9% over the past five sessions. Markets have endured wild swings since Trump unveiled sweeping global tariffs in April. Last week, a new source of uncertainty over his trade policy emerged when a federal appeals court quickly paused a ruling that would have blocked most of the president's tariffs as illegal. The Trump administration is due to respond to the appeals court by Monday 9 June. Sterling was slightly higher against the euro (GBPEUR=X), meanwhile, hitting the €1.184 mark ahead of the eurozone's fresh flash inflation reading and interest rate decision later in the week. Eurozone inflation dipped to 1.9% year-on-year in May, according to the latest flash estimates, slightly below the ECB's 2% target. Oil prices were muted on Tuesday morning, as concerns about economic growth appeared to cap gains from a OPEC+-induced rally in the previous session. Brent crude futures (BZ=F) were flat at $64.59 a barrel, at the time of writing, while West Texas Intermediate futures (CL=F) dipped 0.1% at $62.43 a barrel. The Organization of the Petroleum Exporting Countries and its allies — known as OPEC+ — said in a statement on Saturday that its eight participating countries had agreed to increase output by 411,000 barrels per day. Stocks: Create your watchlist and portfolio Jim Reid, a market strategist at Deutsche Bank ( said: "An increase of this magnitude was flagged on the wires on Friday afternoon and there was some prospect of it being higher than this. He said that oil futures were higher on Monday morning "in a relief that the output increase wasn't higher." However, the OECD's economic growth forecast cut appeared to reignite fears of a global slowdown and how this could weigh on demand for fuel. Gold prices fell declined on Tuesday, as a stronger dollar weighed on the precious metal. Gold futures (GC=F) fell 0.4% at $3,382.30 per ounce at the time of writing, while the spot gold price was down 0.7% to $3,356.98 per ounce. A stronger greenback tends to weigh on gold prices, as the precious metal is typically priced in dollars, meaning a rise in the currency makes the commodity more expensive for foreign buyers. Read more: Trending tickers: Meta, TSMC, BioNTech, Applied Digital and BAT In a note on Tuesday, Bank of America (BAC) strategists said that they were bullish on gold over a one-month horizon. They acknowledged that gold was "facing headwinds near-term as the market adjusts to Trump's economic policies, which may bring about higher inflation and a stronger USD [dollar]." "There is also a risk the EM (emerging market) central bank reduce gold buying, if domestic currencies decline on tariffs," they said. "Yet, ongoing macro uncertainty and rising global debt levels remain supportive," the strategists added. Read more: What is the Pension Investment Review? Eurozone inflation cools to 1.9% in May paving way for interest rate cut UK 'bargain' stocks that have outperformed the market long-termSign in to access your portfolio
Yahoo
03-06-2025
- Business
- Yahoo
Pound edges lower following economic growth forecast cut
The pound dipped nearly 0.2% against the dollar (GBPUSD=X) to trade at $1.3519 on Tuesday, after the Organisation of Economic Cooperation and Development (OECD) cut its forecasts for growth in 2025 and 2026. The OECD warned that the economic outlook was becoming "increasingly challenging" and predicted that that global gross domestic product (GDP) growth will slow from 3.3% in 2024 to 2.9% this year and in 2026. The organisation said that was based on the 'on the technical assumption that tariff rates as of mid-May are sustained despite ongoing legal challenges." "The slowdown is concentrated in the United States, Canada and Mexico, with China and other economies expected to see smaller downward adjustments," it said. For the UK, the OECD lowered it economic growth forecast to 1.3% this year, from the 1.4% it predicted in March. It expected growth to slow further in 2026 to 1%, which was also lower than a previous forecast of 1.2%. Russ Mould, investment director at AJ Bell (AJB.L), said that while the OECD's global growth forecast cut was "only a small revision ... it's still enough to cause investors some digestion as they consume their morning news." "The 90-day pause on tariffs has just over a month before expiration, meaning the pressure is on countries to do deals with the Trump administration," he said. "Reports suggest that [US president Donald] Trump wants best offers on trade negotiations by Wednesday, perhaps to avoid any last-minute rush or stalemate situations." Read more: FTSE 100 LIVE: Stocks head lower as global growth set to slow this year amid Trump tariffs On Monday, China hit back at Trump's claim it had violated the temporary trade agreement between the two countries, while the EU said it opposed the president's doubling of tariffs on steel and aluminium imports. The dollar index ( which pits the greenback against a basket of global currencies, ticked up 0.2% at 98.91. It has lost about 0.9% over the past five sessions. Markets have endured wild swings since Trump unveiled sweeping global tariffs in April. Last week, a new source of uncertainty over his trade policy emerged when a federal appeals court quickly paused a ruling that would have blocked most of the president's tariffs as illegal. The Trump administration is due to respond to the appeals court by Monday 9 June. Sterling was slightly higher against the euro (GBPEUR=X), meanwhile, hitting the €1.184 mark ahead of the eurozone's fresh flash inflation reading and interest rate decision later in the week. Eurozone inflation dipped to 1.9% year-on-year in May, according to the latest flash estimates, slightly below the ECB's 2% target. Oil prices were muted on Tuesday morning, as concerns about economic growth appeared to cap gains from a OPEC+-induced rally in the previous session. Brent crude futures (BZ=F) were flat at $64.59 a barrel, at the time of writing, while West Texas Intermediate futures (CL=F) dipped 0.1% at $62.43 a barrel. The Organization of the Petroleum Exporting Countries and its allies — known as OPEC+ — said in a statement on Saturday that its eight participating countries had agreed to increase output by 411,000 barrels per day. Stocks: Create your watchlist and portfolio Jim Reid, a market strategist at Deutsche Bank ( said: "An increase of this magnitude was flagged on the wires on Friday afternoon and there was some prospect of it being higher than this. He said that oil futures were higher on Monday morning "in a relief that the output increase wasn't higher." However, the OECD's economic growth forecast cut appeared to reignite fears of a global slowdown and how this could weigh on demand for fuel. Gold prices fell declined on Tuesday, as a stronger dollar weighed on the precious metal. Gold futures (GC=F) fell 0.4% at $3,382.30 per ounce at the time of writing, while the spot gold price was down 0.7% to $3,356.98 per ounce. A stronger greenback tends to weigh on gold prices, as the precious metal is typically priced in dollars, meaning a rise in the currency makes the commodity more expensive for foreign buyers. Read more: Trending tickers: Meta, TSMC, BioNTech, Applied Digital and BAT In a note on Tuesday, Bank of America (BAC) strategists said that they were bullish on gold over a one-month horizon. They acknowledged that gold was "facing headwinds near-term as the market adjusts to Trump's economic policies, which may bring about higher inflation and a stronger USD [dollar]." "There is also a risk the EM (emerging market) central bank reduce gold buying, if domestic currencies decline on tariffs," they said. "Yet, ongoing macro uncertainty and rising global debt levels remain supportive," the strategists added. Read more: What is the Pension Investment Review? Eurozone inflation cools to 1.9% in May paving way for interest rate cut UK 'bargain' stocks that have outperformed the market long-termError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-06-2025
- Business
- Yahoo
Pound edges lower following economic growth forecast cut
The pound dipped nearly 0.2% against the dollar (GBPUSD=X) to trade at $1.3519 on Tuesday, after the Organisation of Economic Cooperation and Development (OECD) cut its forecasts for growth in 2025 and 2026. The OECD warned that the economic outlook was becoming "increasingly challenging" and predicted that that global gross domestic product (GDP) growth will slow from 3.3% in 2024 to 2.9% this year and in 2026. The organisation said that was based on the 'on the technical assumption that tariff rates as of mid-May are sustained despite ongoing legal challenges." "The slowdown is concentrated in the United States, Canada and Mexico, with China and other economies expected to see smaller downward adjustments," it said. For the UK, the OECD lowered it economic growth forecast to 1.3% this year, from the 1.4% it predicted in March. It expected growth to slow further in 2026 to 1%, which was also lower than a previous forecast of 1.2%. Russ Mould, investment director at AJ Bell (AJB.L), said that while the OECD's global growth forecast cut was "only a small revision ... it's still enough to cause investors some digestion as they consume their morning news." "The 90-day pause on tariffs has just over a month before expiration, meaning the pressure is on countries to do deals with the Trump administration," he said. "Reports suggest that [US president Donald] Trump wants best offers on trade negotiations by Wednesday, perhaps to avoid any last-minute rush or stalemate situations." Read more: FTSE 100 LIVE: Stocks head lower as global growth set to slow this year amid Trump tariffs On Monday, China hit back at Trump's claim it had violated the temporary trade agreement between the two countries, while the EU said it opposed the president's doubling of tariffs on steel and aluminium imports. The dollar index ( which pits the greenback against a basket of global currencies, ticked up 0.2% at 98.91. It has lost about 0.9% over the past five sessions. Markets have endured wild swings since Trump unveiled sweeping global tariffs in April. Last week, a new source of uncertainty over his trade policy emerged when a federal appeals court quickly paused a ruling that would have blocked most of the president's tariffs as illegal. The Trump administration is due to respond to the appeals court by Monday 9 June. Sterling was slightly higher against the euro (GBPEUR=X), meanwhile, hitting the €1.184 mark ahead of the eurozone's fresh flash inflation reading and interest rate decision later in the week. Eurozone inflation dipped to 1.9% year-on-year in May, according to the latest flash estimates, slightly below the ECB's 2% target. Oil prices were muted on Tuesday morning, as concerns about economic growth appeared to cap gains from a OPEC+-induced rally in the previous session. Brent crude futures (BZ=F) were flat at $64.59 a barrel, at the time of writing, while West Texas Intermediate futures (CL=F) dipped 0.1% at $62.43 a barrel. The Organization of the Petroleum Exporting Countries and its allies — known as OPEC+ — said in a statement on Saturday that its eight participating countries had agreed to increase output by 411,000 barrels per day. Stocks: Create your watchlist and portfolio Jim Reid, a market strategist at Deutsche Bank ( said: "An increase of this magnitude was flagged on the wires on Friday afternoon and there was some prospect of it being higher than this. He said that oil futures were higher on Monday morning "in a relief that the output increase wasn't higher." However, the OECD's economic growth forecast cut appeared to reignite fears of a global slowdown and how this could weigh on demand for fuel. Gold prices fell declined on Tuesday, as a stronger dollar weighed on the precious metal. Gold futures (GC=F) fell 0.4% at $3,382.30 per ounce at the time of writing, while the spot gold price was down 0.7% to $3,356.98 per ounce. A stronger greenback tends to weigh on gold prices, as the precious metal is typically priced in dollars, meaning a rise in the currency makes the commodity more expensive for foreign buyers. Read more: Trending tickers: Meta, TSMC, BioNTech, Applied Digital and BAT In a note on Tuesday, Bank of America (BAC) strategists said that they were bullish on gold over a one-month horizon. They acknowledged that gold was "facing headwinds near-term as the market adjusts to Trump's economic policies, which may bring about higher inflation and a stronger USD [dollar]." "There is also a risk the EM (emerging market) central bank reduce gold buying, if domestic currencies decline on tariffs," they said. "Yet, ongoing macro uncertainty and rising global debt levels remain supportive," the strategists added. Read more: What is the Pension Investment Review? Eurozone inflation cools to 1.9% in May paving way for interest rate cut UK 'bargain' stocks that have outperformed the market long-termSe produjo un error al recuperar la información Inicia sesión para acceder a tu portafolio Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información
Yahoo
01-04-2025
- Business
- Yahoo
Gold climbs to new highs as investors brace for Trump tariffs
The pound was little changed against the dollar in early European trading on Tuesday, changing hands at $1.2920, as investors braced for US president Donald Trump to unveil reciprocal tariffs on 2 April. Trump is set to announce sweeping country-based duties on Wednesday, which he has dubbed "Liberation Day". Trump's varying comments on the nature and extent of tariffs have fuelled volatility in markets this month, with fears that an escalating trade war will drive already stubborn inflation higher and weigh on economic growth. When asked for details of the tariffs on Monday, Trump told reporters: "You're going to see in two days, which is maybe tomorrow night or probably Wednesday." He added: "We're going to be very nice, relatively speaking, we're going to be very kind." Tariff fears prompted a sell-off across markets globally on Monday, with the FTSE 100 (^FTSE) losing 0.9%, though the UK's blue-chip index rebounded on Tuesday morning to start April on the front foot. Read more: FTSE 100 LIVE: Stocks head higher despite tariff anxieties Richard Hunter, head of markets at Interactive Investor, said: "Ahead of the imminent 'Liberation Day' announcement, details remain patchy on the level of tariffs which have led to calls of potential stagflation or, at worst, recession. "Indeed, Goldman Sachs has raised its estimate of the likelihood of recession to 35% from a previous 20%, while alongside the uncertainty the mega cap sector has also taken something of a beating." The pound edged slightly higher against the euro (GBPEUR=X) on Tuesday morning, trading at €1.1944. Gold prices notched fresh highs at the start of a new quarter on Tuesday, with uncertainty over tariffs continuing to help fuel demand for the safe-haven asset. Gold futures (GC=F) were up 0.1% at $3,153.80 per ounce at the time of writing, while the spot price advanced 0.1% to $3,127.49 an ounce. According to a note from Deutsche Bank Research on Tuesday morning, gold prices were up 19% in the first quarter, marking their biggest quarterly gain since 1986. Stocks: Create your watchlist and portfolio In a note on Monday, Hamad Hussain, climate and commodities economist at Capital Economics, said: "Central banks have been a key part of the rally in gold prices over the past 18 months. Indeed, the World Gold Council estimates that central banks now account for about 20% of total gold demand, almost double their average share between 2011 and 2021." "Overall, gold's role as a portfolio diversifier means that central banks will probably remain a large and steady source of gold demand and continue to offset downward pressure on gold prices from a stronger dollar and higher Treasury yields," he said. "Given that gold supply is typically inelastic, we think that gold prices will rise to an above-consensus $3,300 per ounce by the end of this year." Oil prices dipped on Tuesday morning, amid concerns about the impact of tariffs on the global economy and fuel demand. Brent crude futures fell 0.4% to $74.47 a barrel at the time of writing, while US West Texas Intermediate (WTI) crude dipped 0.4% to $71.18 a barrel. However, prices remained near their highest point in a month, supported by concerns about disruptions to supply. NBC News reported on Sunday that Trump said he was "very angry" with Russian president Vladimir Putin and said he may put secondary tariffs on Russian oil if he believed Moscow was at fault for a ceasefire deal not being reached with Ukraine. Read more: What you need to know about investing in VCTs In a separate phone interview with NBC News on Saturday, Trump reportedly threatened Iran with secondary tariffs and bombing if it did not make a deal with the US to make sure it did not develop a nuclear weapon. ING commodities strategists said on Tuesday: "For now, it appears to be just a threat to Russia and Iran. However, if it becomes a reality, it creates plenty of upside risk to the market given the significant oil export volumes from both countries." In broader market movements, the FTSE 100 (^FTSE) rose 0.8% to 8,650 points on Tuesday morning. For more details, check our live coverage here. Read more: How to optimise your retirement planning for tax year-end Stocks to watch this week: BlackBerry, Guess, Travis Perkins, Raspberry Pi and SSE How will UK carmakers be hit by Trump import tariffs? — key developmentsSign in to access your portfolio
