Current Affairs
GBP Finds Optimism, EUR Faces ECB Debate, USD Treads Carefully on Economic Data
GBP Sterling discovers some optimism as the UK manages to avoid an economic decline in the third quarter. However, the UK’s economic outlook isn’t great due to the rising cost of living, higher borrowing costs, labour market challenges, and ongoing price pressures. Increased borrowing costs have impacted the housing sector, with home asking prices falling…
Read MorePound’s Rebound, Eurozone Expectations & Dollar’s Rollercoaster
GBP The British Pound had quite a journey last week. The Bank of England (BoE) decided to keep things stable by maintaining the interest rates at 5.25% for the second time in a row. This decision injected some strength into the Pound. New inflation forecasts from the BoE have predicted that consumer inflation might cool…
Read MoreGBP Faces Retail Sales Slump, EUR Keeps Eyes on Key PMI, USD Weathers Geopolitical Storms
GBP Sterling saw a decline on Friday in response to the latest Retail Sales data for September released by the UK Office for National Statistics. These figures revealed a 0.9% drop in Monthly Retail Sales, a crucial gauge of consumer spending, significantly worse than the expected 0.1% decrease. In contrast, August witnessed a 0.4% increase…
Read MoreSterling Weakens on Soft Wage Data, Eurozone Concerns Loom & Dollar Holds Steady
GBP Sterling retreated against both the Euro and Dollar this week after the release of soft wage data, which further reinforced BoE’s decision to hold interest rates for the time being. The three-month-to-August Average Earnings, excluding bonuses, softened to 7.8%, as expected, compared to the previous release of 7.9%. Alongside this, Average Earnings data, including…
Read MoreSterling Struggles Amidst Geopolitical Uncertainty, Euro Faces Headwinds and USD Regains Momentum
GBP Sterling faced additional downward pressure against the Dollar, extending its correction below the critical support level at 1.2200. This decline in GBP|USD coincides with a shift in market sentiment towards increased risk aversion. The primary reason for this shift is the ongoing Israel-Hamas conflict, which has raised concerns about potential global repercussions. The conflict…
Read MorePound’s Pound-ing Predicament, Euro’s Tightrope Walk, and Dollar’s Domination
GBP Sterling has gone from being one of the strongest performers out of its G10 peers at the start of the year, to now being one of the worst, losing nearly 10-cents against the Dollar alone since summer. At the time of writing GBP|EUR and GBP|USD are both sitting around 1.1520 and 1.2080 respectively. The…
Read MoreChallenges and Uncertainties Await Sterling
GBP Sterling has been under relentless pressure against the Dollar for the past 11 weeks, due to investors and speculators worrying about the UK’ weak economic outlook. Analysts predict that the selloff is likely to continue, with a target of GBP|USD 1.20 in the coming weeks (currently 1.2187 at the time of writing). GBP|EUR also…
Read MoreHeads Turn to BoE and Fed Rate Hike Decisions
GBP Pound Sterling had a turbulent end to the previous week, witnessing a notable decline against the Euro and Dollar. GBP|EUR saw lows of 1.1580 and GBP|USD to 1.2370 marking it lowest in a 3-month period. This was driven by the ECB hiking interest rates, strong data out of the US and a weak overall…
Read MorePound Under Pressure
GBP Bank of England (BoE) Governor Andrew Bailey contributed to the market’s uncertainty by offering insights into the UK’s interest rate trajectory. His remarks led investors to reevaluate expectations, not only for a potential November rate hike but also for the possibility of rates remaining unchanged in the upcoming September meeting. GBP/USD has encountered a…
Read MoreBoE Rate Hike Expectations Climb Higher
GBP With the data calendar for the UK being extremely sparse last week, Sterling traded off the back of key data releases coming out of the US and Eurozone. GBP|EUR traded in a sideways direction for most of the week, bottoming out in the low 1.16’s and peaking at 1.1690, with 1.16 and 1.17 being…
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