Current Affairs
Sterling 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 MoreBrexit negotiations hit roadblock over Irish border issue
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…
Read MoreTheresa May is stepping up plans to tackle the Irish border question in Brexit talks
STERLING Sterling struggled to sustain any upward momentum last week despite some positive Brexit headlines. Over the weekend, the Financial Times said Prime Minister Theresa May was planning a customs partnership to unlock the Northern Ireland dilemma although we are yet to see anything concrete. PMI surveys could steal the spotlight this week, as investors…
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 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…
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