UK Growth to Offer Exchange Rate Boost
Happy Monday! There are more possible iterations of a game of chess than there are atoms in the known universe. The average person walks the equivalent of three times around the world in a lifetime. Coca-Cola would be green if colouring wasn’t added to it. The week ahead UK Prime Minister Boris Johnson has seen…
Read MoreECB cut rates, Saudi oil attack and Sterling appreciation
US DOLLAR The Dollar Index is little changed this morning at around 98.2 having topped out at a one-week high on Thursday at 99.1. The Dollar was pulled lower by weaker than expected US retail sales data released on Friday, plus the post-ECB rebound we saw in the Euro. Investors are now looking ahead to…
Read MoreBoris to meet with European counterparts this week
STERLING The pound hit its lowest level against the US Dollar since January 2017 last Monday at 1.2015 but recovered thereafter on stronger than expected UK data. Average earnings, CPI and retail sales all surprised to the upside and boosted Sterling although the threat of a no-deal Brexit continues to limit any upside. Of note…
Read MoreTrump targets ‘’the largest deal ever made’’ with China
US DOLLAR The Dollar has kicked off the week strong following news over the weekend that the US has agreed to suspend the imposition of new tariffs on China. The Dollar Index rose as high as 96.61, its best level since June 21st, as US yields and equity futures also rallied. Over the weekend President…
Read MoreMPC keep interest rates on hold as probability of a cut jumps to 20%
STERLING The Bank of England kept rates on hold on Thursday via a 9-0 vote but cut growth forecasts which initially weighed on the pound, with the market now pricing in a 20% chance of an interest rate cut this year. Still, Sterling recovered into the weekend and has been trading at a two week…
Read MoreBoE to meet on Thursday
STERLING The Bank of England meet on Thursday for their latest rate setting meeting and this could keep movements in the pound to a minimum before hand – GBP/USD was flat at 1.2590 this morning, although has dropped to 1.2550 this afternoon. Economists are predicting a 9-0 vote by the MPC although there is the…
Read MoreECB hold rates until 2020
EURO The European Central Bank pushed back their rate guidance on Thursday and pledged to remain on hold at least through the first half of 2020. The Euro rallied in response as the Governing Council stopped short of opening the door to a rate cut. EUR/USD made further gains on Friday and closed above $1.13…
Read MoreHeightened fears of a global recession after Trump threatens Mexico with tariffs
With factory activity contracting in most of Asia last month, driven by the US – China trade war, central banks are being forced to review monetary policy, with the Federal Reserve potentially being forced to cut interest rates more than once this year. To compound recessionary fears, President Trump not only threatened to levy new…
Read MoreSterling under pressure as May fights for her political life
STERLING GBP/USD was little changed this morning having touched a fresh four-month low on Friday at $1.2711 on Brexit woes. Cross party talks to reach a Brexit deal that could make it through parliament collapsed on Friday although weekend press reports have suggested Theresa May plans to make a ‘bold offer’ to secure a deal.…
Read MoreCross-party Brexit talks falling apart
STERLING Last week was a choppy one for the Pound as investors reacted to progress, and later the lack of, in the cross-party Brexit talks. The prime minister has consistently refused to entertain a second public vote, insisting she is focused on ‘’delivering the result of the first referendum’’ meaning the chances of a deal…
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