Sterling under pressure as Carney flags no-deal Brexit
STERLING Sterling was volatile last week after the Bank of England decided to hike interest rates by 25 basis points. After the widely expected hike, the pound initially rose but lost ground as Governor Carney struck a dovish tone during the press conference, highlighting the gradual path of future increases and heightened…
Read MoreThis week sees three major central bank meetings
STERLING GBP/USD reclaimed 1.32 mid-week, supported by stronger than expected UK data (mortgage approvals and CBI) and Prime Minister May’s decision to take control of Brexit negotiations. However, losses followed on Thursday after EU Brexit Minister Michel Barnier rejected a key aspect of the UK’s customs plan. Investors are now eyeing Thursday’s Bank of England…
Read MoreBrussels rejects UK’s Brexit proposal
STERLING After the EU rejected Prime Minister Theresa May’s Chequers plan for Brexit last week, May is being urged to look further afield and create world trade deals that could boost the UK economy by £80billion a year. Further, Brexit Secretary Dominic Raab has stated that if the EU do not agree to a…
Read MoreTrump vows ‘great’ post brexit trade deal with UK
STERLING Justine Greening, the former education secretary, has said the idea of a second referendum on Brexit would be supported by senior Tory MP’s. According to Greening, Prime Minister May’s Brexit whitepaper ‘’suits no one’’ and would be rejected by both remainers and leavers. Brexit and the accompanying political uncertainty weighed on the pound last…
Read MoreSterling rallies after David Davis resigns as Brexit Minister
STERLING UK’s Brexit minister David Davis resigned over the weekend and Davis’ move spurred other hard-liners within the UK’s Brexit branch to resign as well, although it has not weighed much with GBP/USD advancing above 1.33 this morning. Theresa May’s latest proposal for a soft Brexit is expected to face heavy challenges from Tory conservatives…
Read MoreHard Brexit or sacrifice UK sovereignty?
STERLING Sterling finished last week on the front foot, rallying on Friday after UK Q1 GDP was revised slightly higher. GBP/USD had touched its lowest level since November last week but bounced back above 1.32 on Friday, although it has retreated to around 1.3150 this morning. Brexit concerns are rearing their heads again after weekend…
Read MoreBank of England signals August interest rate rise
Sterling Sterling rallied higher on Thursday after the Bank of England switched their interest rate votes to 6-3. GBP/USD hit year-to-date lows on Thursday but bounced on the BoE decision. Brexit related uncertainty had also provided a weight, but this dissipated as Prime Minister Theresa May avoided a rebellion midweek. On the event calendar…
Read MoreBank of England to hold interest rates
STERLING The Bank of England’s Monetary Policy Committee meets on Thursday where they are widely expected to leave the Bank Rate on hold at 0.50%, albeit via a 7-2 vote (most economists have pencilled in the next hike for August). Recent data releases have been somewhat mixed although investor focus was distracted last week by…
Read MorePrepare for the World Economy’s Most Important Week of the Year
This week could be the most important week of the year for the global economy according to Bank of America, as President Trump meets Kim Jong-un, MP’s vote on the Brexit bill along with the Fed, ECB and BoJ all meeting. STERLING Theresa May’s flagship Brexit legislation returns to the lower House of Commons after…
Read MoreUK manufacturing data boosts Sterling
STERLING Sterling found some modest support last week with GBP/USD managing to log a weekly gain after six weeks of declines. UK manufacturing PMI surpassed expectations and investors will be hoping for similar outcomes for services tomorrow. Industrial and manufacturing production follow on Friday. EURO The Euro was at the mercy of political developments last…
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