Bank of England leaves rates on hold amid Brexit uncertainty
STERLING The Bank of England voted 9-0 to leave the Bank Rate on hold last week but did mention rising uncertainty related to Brexit. The release promoted only a brief drop in Sterling with GBP/USD later topping out at a six-week high on Friday at 1.3144. Brexit related headlines were mixed although the most notable…
Read MoreEU leaders ready to give Barnier mandate to close Brexit deal
STERLING Sterling hit a three week high versus the Euro on Friday (GBP/EUR at 1.1211) after EU Brexit Minister Barnier struck a notably more conciliatory tone on Brexit negotiations. There has also been reports over the weekend that the EU are preparing to give Barnier a mandate to get a deal done. Reaction to this…
Read MorePressure increases on UK PM May as critics tear into her Brexit strategy
STERLING Sterling has begun the week as the G10 underperformer after Brexit related uncertainty intensified over the week – EU Brexit Minister Michel Barnier has been highly critical of Prime Minister Theresa May’s Chequers proposal. However, the PM insists she will not allow compromises to her Brexit strategy, vowing the nation’s interests must be adhered…
Read MoreMay says no-deal Brexit “not the end of the world”
STERLING GBP/USD has edged above 1.29 today although any upside in Sterling is likely to remain limited by a lack of progress in Brexit negotiations. The UK government unveiled the impact of a no-deal Brexit last week but officials still maintain they expect to reach an agreement with the EU. Looking ahead, UK house…
Read MoreHunt warns odds of a no-deal Brexit have increased
STERLING Sterling fell to its lowest level against the US Dollar since last June on Wednesday at 1.2662 mid-market. The pair nudged back above $1.27 relatively swiftly however with stronger-than-expected CPI and retail sales data providing support. There was not much to cheer on the Brexit front with UK Foreign Minister Hunt warning that the…
Read MoreNo-deal Brexit?
STERLING Sterling was one of the G10 underperformers last week with Brexit related uncertainty the main talking point amid the rising prospect of a no-deal scenario. Recent dovish rhetoric from the Bank of England may also still be in play while Friday’s data barrage was largely in line with expectations. GBP/USD dropped through $1.28 on…
Read MoreTheresa May warns UK to get ready for no-deal Brexit
Theresa May is organising a meeting of her cabinet ministers to prepare the UK for a no-deal Brexit at the start of September. To date, negotiations have been extremely slow with two key issues preventing further progress: the prime ministers proposal for a new free-trade area and how to avoid a hard border in…
Read MoreSterling 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…
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