During the European trading hours, major macroeconomic data releases tend to drive volatility in the EUR/GBP pair. Traders can use technical analysis to identify ongoing trends in the pair. The EUR/GBP price often peaks during the European session. While the Bank of England has begun to hike interest rates, the pair has still been prone to large fluctuations. This was due to the lack of clarity surrounding the Brexit negotiations. This created a vacuum that dragged the pound lower.
Traders also need to watch the European Central Bank’s policy. The central bank has stated that it will begin to raise interest rates in 2022 according to eur gbp forecast. This will likely push the pound stronger against the euro. There are also political factors that can affect the value of the pound. The recent leadership battle in the Conservative Party created a vacuum that dragged the value of the pound lower. In September, a new government was sworn in. The new government announced a new’mini-budget’ that underpinned sterling. However, the long-term effects of this government may not be rosy.
Despite this, the Bank of England’s Monetary Policy Committee stated that it will hold the next interest rate decision after the Brexit deal is finalized. This could embolden the MPC to raise interest rates aggressively. The pound has been struggling against growth, inflation, and energy prices. The pound’s weak performance against the euro reflects a lack of confidence in the UK economy. To earn by referring new traders to Bybit, a trader must download the Bybit app and complete the ‘Referral Code’ section of the app. Then, they can use a Bybit referral code to open an account. If a new trader refers two or more people, they can earn a 30% referral bonus on their trading fees.
In the upcoming years, the European Union will continue to leverage its trade and investment policies. The EU will be able to shape global norms. Despite the economic crisis in the UK, the Pound has managed to rebound from earlier losses. But the recovery could be limited this week. If inflation data from the United States is strong, the Pound could unravel. The next week’s economic data releases could also dampen the rally.
The US dollar has been rising on a combination of hawkish Fed bets and safe haven flows. But global inflation is the main issue at the moment. The UK and the US are both facing inflation problems. The UK’s fiscal plan includes a plan to increase savings and revenue while reducing spending. The UK has a budget gap of about GBP35bn. The Bank of England has raised interest rates by 25 basis points in September. This has caused the pound to dollar forecast to improve. The Bank of England’s next meeting is scheduled for November. The Autumn budget includes spending cuts and tax rises.
The British pound has been down 15% against the dollar since the start of the year. Analysts say this is partly due to disruptions in the UK’s pension plan. There are also concerns that the country is facing another Westminister PM’s resignation. The currency has also been weak because of worries about the new leadership team. The Pound to Dollar forecast is set to reverse half of the losses from earlier in the year. A surge in UK inflation may also be beneficial to the Pound, as investors anticipate further rate hikes. However, the 2022 outlook looks cloudy. High inflation and slowing wage growth could put a damper on the recovery.
