Posts by Currency Global
Sterling slides to this year’s low
STERLING Sterling found some support towards the end of last week amid reports that the UK could remain in the customs union until 2020. Earlier in the week Theresa May is reported to have said that Brexit negotiations are at an impasse because neither of her current options for a customs deal with the EU…
Read MoreBank of England keeps interest rate at 0.5%
STERLING Although Sterling finished Friday on the front foot, the UK currency took a hit earlier in the week after the Bank of England turned a touch more dovish. Policymakers said they expect inflation to fall back to target faster than previously expected and see the need for only limited tightening over the forecast horizon.…
Read MoreSterling struggles as BoE rate decision approaches
STERLING Sterling was rocked last week by a string of weaker-than-expected macro data releases and negative Brexit headlines. It has seen a better start to the week however with M&A news leading GBP/USD higher yesterday where UK markets were closed for the bank holiday. Investors are now looking ahead to Thursday’s Bank of England meeting…
Read MoreSterling slides on Rudd's resignation
STERLING Sterling fell sharply on Friday after data showed the UK economy almost came to a standstill in the first quarter, posting a GDP print of just +0.1% quarter-on-quarter versus forecasts for a gain of +0.3%. The data has dampened expectations for an interest rate increase at the Bank of England next month to less…
Read MoreBrexit negotiations hit roadblock over Irish border issue
STERLING Sterling traders were kept on their toes last week with a flurry of tier-one data releases and central bank rhetoric. The pound was already on the defensive following soft prints for UK wages, CPI and retail sales but lost further ground after comments from Bank of England Governor Carney on Friday. He noted that…
Read MoreImportant data releases this week – UK inflation, retail sales and unemployment figures
STERLING Sterling finished last week on the front foot, deriving support from hawkish Bank of England and favourable Brexit rhetoric. Ian McCafferty, a known hawk, said on Wednesday that they should not dally when it comes to tightening policy. EU Brexit Minister Michel Barnier meanwhile signalled that they could show some more flexibility with regards…
Read MoreSterling was fairly resilient last week in response to poor data releases
STERLING There were some worrying signs for the health of the UK economy last week, where service PMI fell well short of expectations. The Chief Economist at Markit warned that the UK economy had iced up in March, suffering the weakest increase in business activity since the Brexit vote. However, he did note that disruptions…
Read MoreTheresa May is stepping up plans to tackle the Irish border question in Brexit talks
STERLING Sterling struggled to sustain any upward momentum last week despite some positive Brexit headlines. Over the weekend, the Financial Times said Prime Minister Theresa May was planning a customs partnership to unlock the Northern Ireland dilemma although we are yet to see anything concrete. PMI surveys could steal the spotlight this week, as investors…
Read MoreUS dollar fell last week in the wake of the FOMC policy decision
STERLING Sterling rose last week, boosted by positive Brexit developments after the EU Commission confirmed they had reached an agreement with the UK government on the terms of the transition period. The Bank of England rate decision on Thursday became the main focus after strong wage data and a 7-2 vote to leave the Bank…
Read MoreMarket News – Sterling climbs on Brexit transition deal hopes
STERLING News this morning has broken that the UK and EU have agreed a transition deal for Brexit up until the end of 2020, although the deal needs to be signed off from Michel Barnier and David Davis. The Pound has reacted well, making advances against most of its G10 peers. Sterling traders will be…
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