Pound Sterling (GBP)

GBP/EUR - Today's data summary

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Price Euros
As of 16:39 25 Jan 2020

GBP/JPY - Today's data summary

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Price Yen
As of 16:43 25 Jan 2020

GBP/USD - Today's data summary

% change
Price US dollars
As of 16:43 25 Jan 2020

Latest updates

Pound creeps up

Pound graph

The pound has crept up against the dollar today, climbing 0.33% to $1.3053.

Against the euro it has risen 0.38% to €1.1769.

Pound up, FTSE down

City trader
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A quick check on the markets and sterling has risen this morning, boosted by the stronger-than-expected UK employment figures which some analysts think makes the prospect of an interest rate cut next week less likely.

Sterling is up 0.4% against the dollar at $1.3058, while against the euro it's 0.3% higher at €1.1753.

But the FTSE 100 is not having such a good session, and remains down 1%. Most of the major European stock markets are down following big falls overnight in Asia, which were triggered by worries over the new virus in China.

"The FTSE 100 was lower this morning, taking its cue from selling in Asia amid growing concern about the ‘coronavirus’ in China which has led to the death of at least four people," said AJ Bell investment director Russ Mould.

“The markets will be watching nervously amid reports the deadly virus has spread to neighbouring countries, with all the potential economic disruption that could cause."

Weak retail numbers pull down sterling

pound chart

The pound lost early morning gains against the dollar dropping 0.22% to a low of $1.3052 on the dour retail figures released by the Office of National Statistics.

Commenting on the numbers, Karen Johnson, head of retail and wholesale corporate banking at Barclays said: “December was tough for UK retailers, with the expectation of the festive ringing of tills falling short of the mark.

However, we can’t escape the fact that both the value and volume of sales in this period have clearly increased year on year and, whilst the ‘golden quarter’ might have underperformed in comparison to the rest of 2019, now is not the time to be downbeat as there are still positive signs for retail businesses.

Pound slips further against euro

Pound graph

The pound's day has been largely bleak.

It's now down 0.22% at €1.1674 against the euro as our graph (above) shows.

"The pound had another gloomy day, softened up by a pro-rate cut appearance from Bank of England MPC member Michael Saunders – less of a shock given he has voted for a cut twice recently – and a weaker than forecast inflation reading," said Connor Campbell of SpreadEx.

Against the dollar it's fared a little better and is now up 0.2% at $1.3023.

Pound trips over inflation data

picture of the pound falling
PA Media

The pound dropped 0.25% immediately after news of the inflation numbers signalled the possibility of a Bank of England rate cut.

An interest rate cut would make the pound less valuable for currency traders to hold.

Commenting on the figures, Emma-Lou Montgomery, associate director for personal investing at Fidelity International, said: “They will fuel speculation about the likelihood of a cut in interest rates in the coming months, with those at Threadneedle Street under pressure to stimulate the economy following months of uncertainty towards the end of 2019.

"Many had hoped for a rally following the outcome of December’s election, but from what we’ve seen so far this hasn’t necessarily materialised - although this week’s Retail Sales figures will indicate how the high street has fared".

Pound falling again

Pound coin
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Sterling has been in the red again this morning as expectations continue that the Bank of England will cut interest rates later this month.

The pound has fallen 0.16% to $1.2968 this morning, leaving it looking likely to decline for a fourth day in a row.

It's lost 2.2% against the dollar so far this year.

Against the euro today it's down 0.19% at €1.1644.

The rate-setting committee will make its decision on 30 January.

Pound drops on rate fear

Russ Mould, investment director at AJ Bell says a potential rate led to the pound's fall today and in turn has seen bank shares fall. He said:

The pound has dropped 0.5% to $1.2996 as markets start to weigh up the prospect of a potential rate cut in the UK. Weekend press reports suggest a growing number of Bank of England policymakers are considering voting for a rate cut so as to try and stimulate the economy. That’s put a dent in the share prices of banks such as Lloyds, down 0.7%, and Royal Bank of Scotland which fell 0.5%.

Sterling tumbles on Carney comments

Notes and coins
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Sterling has fallen to its lowest level against the dollar for nearly two weeks.

The drop follows comments by Bank of England governor Mark Carney who said that there could be a “relatively prompt response” if it looked like weakness in the economy would persist.

This hint that interest rates could be cut to stimulate the economy prompted sterling to fall by 0.5% to $1.3028, its lowest level since 27 December.

The pound also fell by 0.5% against the euro, to 1.1735.

The betting on the markets is there's about a 60% chance of a 0.25% cut in interest rates by December.

Mr Carney also referred to the potential to increase quantitative easing - the bank pumping more money into the economy by buying government bonds - in order to stimulate the economy.

He said there was room to "at least double" the bank's £60bn stimulus package of August 2016.

Pound holds around $1.30

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Sterling is holding steady at around $1.30 as MPs prepare to vote on whether to back the prime minister's plan for the UK to leave the EU on 31 January.

The EU (Withdrawal Agreement) Bill would also ban the government from extending the transition period - where the UK is out of the EU but follows many of its rules - past 2020.