Action from the BoE leads to a stronger Pound

As the Bank of England (BoE) made the second round of emergency cuts to interest rates, it resulted in the strengthening of the pound against both the euro and dollar. Quantitative easing also helped the situation, showing encouraging signs for international payments. The world of currency has seen a significant shift in recent weeks but due to the announcement from the BoE, the foreign exchange rate experienced a slight rebound as a result. Despite this, sterling is still some way short of where it was before COVID-19.

currency news

However, as the markets began to stabilise last week, it resulted in those currencies that are considered a safe bet such as the US dollar to become weaker. Following the closure of many establishments, including restaurants, pubs, clubs and cinemas by Boris Johnson, there is even more uncertainty about the markets as a whole.

During this week, the official meeting of the BoE will take place with all decisions being announced on Thursday. As the rate currently stands at 0.1%, it is unlikely that any further cuts will be made.  Along with this, the BoE will also abandon their stress tests this year while it looks as though it is going to be a relatively busy week for UK data as inflation rate data will be released on Wednesday as well as the retail sales figures which will be released on Thursday.

Today’s key announcements:

  • EUR G20 Meeting
  • USD Senate votes on Coronavirus Bill


NewbridgeFX offers a specialist service in the deliverable foreign exchange market, promoting a range of products and services, available online or over the phone. Our products have been designed to meet the needs of our clients. A lot of these products are ways for businesses, and individuals, to manage and mitigate currency risk, and are used frequently during times of increased volatility. Alongside up to date foreign exchange related market news, which works in tandem with our range of products. 

Spot Contract

Lock in an exchange rate for immediate onward settlement. Funds can be received the same day.

Forward Contract

Lock in an exchange rate today, but for settlement at a later date that suits you, up to 12 months in the future.

Market Order

We monitor the markets real time and take action to trade between currencies when your desired rate is achieved.

Rate Alerts

Set an alert for phone or email notification when an exchange rate has be achieved to take advantage at the best time.