Hard 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…

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Bank 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…

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Bank of England to hold interest rates

Tower Bridge Large

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…

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Brexit negotiations hit roadblock over Irish border issue

Currency Global Market News

STERLING Sterling traders were kept on their toes last week with a flurry of tier-one data releases and central bank rhetoric. The pound was already on the defensive following soft prints for UK wages, CPI and retail sales but lost further ground after comments from Bank of England Governor Carney on Friday. He noted that…

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US Interest Rate Hike

Yellen 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…

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Autumn Statement Key Points

Hammond

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…

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Brexit – What it means for the future of currency exchange

Brexit Flag

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…

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US Presidential Election

US Elections

President-elect Donald Trump defeated Hillary Clinton in part by building a coalition of voters who had not supported Republican candidates as enthusiastically in the past. Trump won huge numbers of votes in counties with low annual incomes – over 51% of the vote in those counties, surpassing Clinton by nine points. These votes were won…

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