Posts by Currency Global
GBP Faces Retail Sales Slump, EUR Keeps Eyes on Key PMI, USD Weathers Geopolitical Storms
GBP Sterling saw a decline on Friday in response to the latest Retail Sales data for September released by the UK Office for National Statistics. These figures revealed a 0.9% drop in Monthly Retail Sales, a crucial gauge of consumer spending, significantly worse than the expected 0.1% decrease. In contrast, August witnessed a 0.4% increase…
Read MoreSterling Weakens on Soft Wage Data, Eurozone Concerns Loom & Dollar Holds Steady
GBP Sterling retreated against both the Euro and Dollar this week after the release of soft wage data, which further reinforced BoE’s decision to hold interest rates for the time being. The three-month-to-August Average Earnings, excluding bonuses, softened to 7.8%, as expected, compared to the previous release of 7.9%. Alongside this, Average Earnings data, including…
Read MoreSterling Struggles Amidst Geopolitical Uncertainty, Euro Faces Headwinds and USD Regains Momentum
GBP Sterling faced additional downward pressure against the Dollar, extending its correction below the critical support level at 1.2200. This decline in GBP|USD coincides with a shift in market sentiment towards increased risk aversion. The primary reason for this shift is the ongoing Israel-Hamas conflict, which has raised concerns about potential global repercussions. The conflict…
Read MorePound’s Pound-ing Predicament, Euro’s Tightrope Walk, and Dollar’s Domination
GBP Sterling has gone from being one of the strongest performers out of its G10 peers at the start of the year, to now being one of the worst, losing nearly 10-cents against the Dollar alone since summer. At the time of writing GBP|EUR and GBP|USD are both sitting around 1.1520 and 1.2080 respectively. The…
Read MoreChallenges and Uncertainties Await Sterling
GBP Sterling has been under relentless pressure against the Dollar for the past 11 weeks, due to investors and speculators worrying about the UK’ weak economic outlook. Analysts predict that the selloff is likely to continue, with a target of GBP|USD 1.20 in the coming weeks (currently 1.2187 at the time of writing). GBP|EUR also…
Read MoreHeads Turn to BoE and Fed Rate Hike Decisions
GBP Pound Sterling had a turbulent end to the previous week, witnessing a notable decline against the Euro and Dollar. GBP|EUR saw lows of 1.1580 and GBP|USD to 1.2370 marking it lowest in a 3-month period. This was driven by the ECB hiking interest rates, strong data out of the US and a weak overall…
Read MorePound Under Pressure
GBP Bank of England (BoE) Governor Andrew Bailey contributed to the market’s uncertainty by offering insights into the UK’s interest rate trajectory. His remarks led investors to reevaluate expectations, not only for a potential November rate hike but also for the possibility of rates remaining unchanged in the upcoming September meeting. GBP/USD has encountered a…
Read MoreBoE Rate Hike Expectations Climb Higher
GBP With the data calendar for the UK being extremely sparse last week, Sterling traded off the back of key data releases coming out of the US and Eurozone. GBP|EUR traded in a sideways direction for most of the week, bottoming out in the low 1.16’s and peaking at 1.1690, with 1.16 and 1.17 being…
Read MoreDoom & Gloom Sentiment for the UK & Eurozone
GBP As expected, there was a lot of volatility in the market last week. Elevated interest rate hike expectations provided Sterling with strength at the beginning of the week, with GBP|EUR peaking at 1.1770 and GBP|USD at 1.2800. However, the run for Sterling was short lived as more doom and gloom of a UK recession…
Read MoreStrong Wage & Inflation Data Provide Support for Sterling amid Recession Concerns
GBP Wage growth and inflation data were both reported stronger than expected last week. The ONS reported “In April to June 2023, the annual growth for regular pay (excluding bonuses) was 7.8%. This is the highest annual growth rate since comparable records began in 2001.” Statista reported “UK inflation rate was 6.8 percent in July…
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