STERLING The Bank of England meet on Thursday for their latest rate setting meeting and this could keep movements in the pound to a minimum before hand – GBP/USD was flat at 1.2590 this morning, although has dropped to 1.2550 this afternoon. Economists are predicting a 9-0 vote by the MPC although there is the…

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EURO The European Central Bank pushed back their rate guidance on Thursday and pledged to remain on hold at least through the first half of 2020. The Euro rallied in response as the Governing Council stopped short of opening the door to a rate cut. EUR/USD made further gains on Friday and closed above $1.13…

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STERLING GBP/USD was little changed this morning having touched a fresh four-month low on Friday at $1.2711 on Brexit woes. Cross party talks to reach a Brexit deal that could make it through parliament collapsed on Friday although weekend press reports have suggested Theresa May plans to make a ‘bold offer’ to secure a deal.…

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STERLING Last week was a choppy one for the Pound as investors reacted to progress, and later the lack of, in the cross-party Brexit talks. The prime minister has consistently refused to entertain a second public vote, insisting she is focused on ‘’delivering the result of the first referendum’’ meaning the chances of a deal…

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US DOLLAR The Dollar Index inched higher yesterday morning to 97.6 having declined on Friday’s jobs report as soft wage data overshadowed a strong non-farm payrolls print (+263,000) with the unemployment rate falling to 3.6%, a 50-year low. The Trump administration continued to raise the temperature in trade tensions with China yesterday, with top trade…

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STERLING Brexit related developments haven taken somewhat of a backseat for the pound of late although GBP/USD dipped below 1.29 last week to a two-month low of 1.2865. The pair has inched higher overnight despite warnings from rating agencies on Friday that the UK rating is still at risk from a no-deal Brexit. Looking ahead,…

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STERLING Sterling continues to be driven by Brexit related developments and having flirted with $1.32 in the middle of last week, has drifted back towards the 1.30. Investors have welcomed what appears to be a reduced likelihood of a no-deal Brexit and a higher probability of a softer Brexit although this is still some way…

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US DOLLAR The Dollar Index nursed a minor decline this morning although has maintained the 97.0 handle. The index touched a near three-week high on Friday at 97.27 after Michigan Sentiment and new home sales surpassed expectations. There was minimal reaction meanwhile to a slight downward revision to Q4 GDP on Thursday. Retail sales for…

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