Market News – 03 January 2017
Happy new year and best wishes for 2017 from the team at Currency Global! What a year 2016 was – Brexit and Sterling’s dramatic slide, Trumps election victory, oil prices plunging and the Dollar’s rally among others: we were never short of attention-grabbing headlines. Yet there are still reasons to hope that 2017, like 2016,…
Read MoreMarket Report – 19 December 2016
As expected, the Federal Reserve decided to raise its benchmark interest rate last Wednesday and upped its expectation for the number of rate hikes in 2017. The move, which markets saw a 100% probability of, will increase the target of the federal funds rate, which banks use to lend to each other overnight — by 25…
Read MoreMarket Report – 12 December 2016
There’s a growing number of central banks questioning the point of printing paper money. The Danish central bank are now looking into producing a virtual currency instead, which they predict will make crime harder and oversight easier. The Danes aren’t alone. Britain and Sweden are blazing a trail in Europe. Singapore and Canada have already…
Read MoreMarket Report – 05 December 2016
Italian Prime Minister Matteo Renzi has resigned after suffering a crushing defeat in a referendum over his plan to reform the constitution. The Euro has fallen to its lowest level against the Dollar since March 2015, with calls for parity by a number of global analysts. Renewed fears of political instability and turmoil for Italy’s…
Read MoreMarket Report – 28 November 2016
The Bank of England added a new, higher bar to its third round of public stress tests. The central bank will announce the outcome of its annual health check of the six biggest banks and one building society, Nationwide – on Wednesday. GBP Consumers and businesses increased their spending in the third quarter as the…
Read MoreUS Interest Rate Hike
Minutes from the FOMC’s November meeting showed a strengthening case to raise interest rates, with some members saying a hike should happen at the year’s final meeting, on December 13th-14th. The summary of the meeting, only a week before the US election, provides the clearest signal yet that the Fed plans to lift rates for…
Read MoreAutumn Statement Key Points
In his first Autumn Statement, Chancellor Phillip Hammond stated that he ‘’is focused on preparing and supporting the economy as we begin writing a new chapter in our country’s history’’. This will be the last Autumn Statement. The Budget will now be in the Autumn, incorporating a Spring statement. According to the Chancellor, Britain will be…
Read MoreMarket Report – 21 November 2016
Phillip Hammond will deliver the Autumn Statement on Wednesday, in which he will reveal the state of the economy and outline the government’s spending plans. He will reportedly announce broad direction, but leave more policy announcements to his colleagues, unlike his predecessor George Osborne. Wednesday also brings us durable goods orders from the US for…
Read MoreBrexit – What it means for the future of currency exchange
Overview: Sterling’s dramatic depreciation post-Brexit has hindered the UK’s importers to keep prices competitive, with the fall now forcing them to either hike prices, in some cases by over 10%, or share the increase with their buyers and reduce their profit margins. The political risk surrounding the triggering of Article 50 is anchoring Sterling’s potential…
Read MoreMarket Report – 14 November 2016
President elect Donald Trump crushed rival Hillary Clinton in dominating style last week. Trump, who will take office on January 20th 2017, then managed to calm markets with a conciliatory speech once he had acquired the 270 electoral votes required for victory, with the expected Dollar sell off yet to start. Both Theresa May and…
Read More