Pound-to-Euro Hits a New Overbought Record
Sterling's rally against the euro has reached momentum extremes with no precedent since the financial crisis, and a market pricing a series of Bank of England hikes leaves it exposed to a repricing.
Sterling's rally against the euro has reached momentum extremes with no precedent since the financial crisis, and a market pricing a series of Bank of England hikes leaves it exposed to a repricing.
The consensus is ripe to be challenged.
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21 October 2026Official daily exchange rates from 1971 to today: Bank of England, ECB and interbank sources.
Bank of England trade-weighted sterling effective exchange rate index (Jan 2005 = 100)
A reading above 100 means the currency is expensive relative to its long-run historical average. Below 100 means it is undervalued.
Another major house concedes the pound has outrun its expectations, but holds its targets until the Budget and Bank of England have spoken.
Pound Sterling Charges Onwards Following Hot Inflation Print Jobs Print Leaves Bank of England Short of Excuses to Avoid a Hike Pound Sterling Jumps to Fresh 2026 Best Following Jobs SurpriseSterling's rally against the euro has reached momentum extremes with no precedent since the financial crisis, and a market pricing a series of Bank of Engl...
Pound-to-Euro Week Ahead Forecast: Overbought, Due a Breather Pound-to-Euro Defies The Pullback Signals Pound-to-Euro Rally Prints a Reversal Signal at Multi-month BestThe British pound rose against the euro and the dollar after UK unemployment fell unexpectedly and pay growth beat expectations.
Pound Sterling Falls After Bank of England Strikes a Dovish Tone Burnham's Gen-Z Base Leads Confidence to 2-year Highs Pound Sterling Up-case Reinforced by Rising Consumer ConfidenceBailey says the neutral rate has risen and the economy is resilient, leaving the pound the G7's best performer this week.
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RBNZ Hold Next Week Would Likely Sink the New Zealand Dollar says ASB GBP/NZD Week Ahead Forecast: Fresh Highs Still in Scope New Zealand Dollar is Day's Best PerformerThe single currency is holding its ground on a softer US dollar even as French borrowing costs reach their highest since 2002, and strategists question how...
Euro-to-Dollar Week Ahead Forecast: Holding 1.1150 Euro-Dollar Bounces Back, But Upside Limited Warns KBC Euro-to-Dollar Pressure Builds as U.S. Core Inflation Pressures Fed Into ActionThe market has priced 84% odds of a Bank of Canada hike next Wednesday, which caps how much further the Canadian dollar can climb on it.
Canadian Dollar Outperforms on Alberta Vote GBP/CAD Week Ahead Forecast: Alberta Votes Pound to Canadian Dollar Week Ahead Forecast: Steady Rally Has Room to RunThe Swiss franc is undermined by 0% base rate and a misfiring safe-haven bid, but France and an AI rout could shift the narrative.
Chasing Franc Weakness Looks Attractive: Lloyds Bank Pound-Franc Gains Have Further to Run: BofA Swiss Franc Most Vulnerable to Oil Spikes: HSBC