Sterling Holds Firm, Dollar Faces Volatility, and Euro Eyes Economic Challenges
Currency Pairs (Mid-Market Rates) Interest Rates Inflation UK Tuesday – Claimant Count Change:The Pound held steady after UK wage growth data surprised to the upside. Average Earnings (Excluding Bonus) rose by 5.6%, beating expectations and highlighting robust wage growth. However, weak labour growth (+35K workers) and a higher unemployment rate (4.4% vs. 4.3% prior) reveal…
Read MoreKey Market Movers This Week: UK Inflation Data, US CPI, and China’s GDP in Focus
Market Report Week Commencing 13th January 2025 Currency Pair Mid-Market Rates GBP – USD 1.2164 GBP – EUR 1.1892 GBP – AED 4.4680 GBP – CNY 8.9201 EUR – USD 1.0228 Accurate at the time of writing Country Interest Rate Inflation UK 4.75% 2.6% US 4.5% 2.7% Eurozone 3.15% 2.4% UAE 4.4% 3.01% China 3.1%…
Read MoreSterling Gains Ground, Eurozone Inflation in Focus, and USD Eyes Jobs Report for Direction
GBP Sterling has held up well following its shaky start to the new year, trading firmly above 1.20 against the Euro (currently 1.2051) and pushing above 1.25 against the Dollar (currently 1.2570). It’s a quiet week ahead for UK data. This morning’s BRC Like-for-Like Retail Sales figures for December came in at +3.1%, significantly beating…
Read MoreKey Data Week: Pound Gains, Euro Struggles, and the Fed Takes Centre Stage
GBP The Pound strengthened against both the Euro and the Dollar this morning following robust UK wage data. The latest ONS report showed that regular pay (excluding bonuses) rose to 5.2% in October, surpassing expectations of 5% and up from 4.9% previously. This gave the Pound a lift, with GBP/EUR breaking through 1.21 and GBP/USD…
Read MoreVolatility Amid Trade Risks and Economic Uncertainty
GBP The British Pound saw cautious trading this week as investors assessed the impact of external pressures and ongoing economic challenges. Tariffs and Trade Risks: Bank of England Deputy Governor Clare Lombardelli highlighted concerns over the potential impact of US trade tariffs on UK growth. While she noted that trade barriers are generally harmful to…
Read MoreGBP Braces for BoE Rate Decision; EUR and USD Eyes Turn to ECB and U.S. Election Outcomes
GBP The spotlight in the UK FX market is on Thursday afternoon, when the Bank of England (BoE) will announce its latest interest rate decision. Currently, inflation has eased to 1.7%, below the BoE’s target of 2%. Markets are widely anticipating a 0.25% rate cut, which would bring the base rate to 4.75% Despite the…
Read MoreGBP Awaits Key Budget Update, EUR Pressured by Rate Cut Bets, USD Eyes Economic Data and Election Dynamics
GBP The UK budget announcement on Wednesday is expected to weigh on the Pound as markets anticipate potential increases in government spending and public debt. With economic challenges intensifying, any indication of aggressive fiscal policies or higher borrowing could erode investor confidence and apply further pressure on Sterling. If the budget fails to address concerns…
Read MoreSterling Holds Firm, Euro Weakens, Dollar Gains as US Election and Central Banks Take Focus
GBP Sterling has been one of the best-performing major currencies in 2024, thanks to the Bank of England’s cautious stance on cutting interest rates and better-than-expected economic data earlier in the year. If the upcoming budget is well received, and the BoE continues to take a measured approach to rate reductions, the Pound could maintain…
Read MoreGBP Struggles Amid Middle East Tensions, Focus Shifts to ECB and Fed Rate Moves
GBP The Pound Sterling started the week on the back foot, weakening against its major peers as market sentiment took a hit. At the time of writing, GBP|USD and GBP|EUR are trading at 1.3098 and 1.1913, respectively. Growing tensions in the Middle East, particularly between Iran and Israel, have sparked concerns. Over the weekend, Israel…
Read MorePound Struggles Amid BoE Rate Cut Fears, Euro and Dollar Steady as Global Rate Cuts Loom
GBP The Pound is under selling pressure as markets anticipate a potential 50 basis point interest rate cut from the Bank of England. In an interview, Governor Andrew Bailey hinted at a faster pace of rate cuts, marking a shift from his previously cautious approach. Bailey suggested the BoE could be “a bit more aggressive”…
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