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May 12, 2021 - Written by Frank Davies
Pound (GBP) Exchange Rates Rally as Monthly UK GDP Betters Forecast
The Pound to Euro (GBP/EUR) exchange rate extended its uptrend on Wednesday as the monthly UK gross domestic product reading bettered forecasts.
As growth jumped 2.1% on the month in March this helped to encourage hopes of a stronger second quarter growth rebound to come.
Although the first quarter GDP still showed a -1.5% contraction this was not enough to weigh down demand for the Pound at this stage.
Investors choose to continue focusing on the prospect of a second quarter recovery, especially as markets continued to brace for the next phase of easing in national lockdown conditions.
February 10, 2021 - Written by Frank Davies
Leap in Norwegian Inflation Drags Pound Norwegian Krone Exchange Rate Lower
The Pound to Norwegian Krone (GBP/NOK) exchange rate remained under pressure thanks to an unexpectedly strong uptick in January’s Norwegian inflation rate.
While forecasts had pointed towards the inflation rate rising from 1.4% to 1.7% on the year investors were caught off guard as the figure instead surged to 2.5%.
This sharp increase in inflationary pressure could give the Norges Bank greater cause for confidence going forward, raising the potential for monetary tightening measures in the months ahead.
As the oil market also held onto a positive footing over the course of the day this helped to shore up the Norwegian Krone further, leaving the GBP/NOK exchange rate trending lower.
GBP USD Exchange Rate Outlook Improves On Signs Of Brexit Deal Progress
GBP/USD Exchange Rate Jumps Near 1% as Markets Suspect Brexit Deal is Close
Optimism over the prospect of a UK-EU trade agreement helped to drive the Pound to US Dollar (GBP/USD) exchange rate higher.
Comments from Ireland’s Foreign Secretary Simon Coveney encouraged market hopes as he noted that there are signs of progress in talks since Sunday.
With investors increasing their bets on the possibility of the two sides still reaching an agreement before the end of the Brexit transition period the appeal of the Pound naturally improved.