Posts Tagged ‘CPI’
Sterling Weighted by Uncertainty, Euro Braces Amidst Policy Divergence & Dollar Holds Steady
GBP The Pound experienced a decline from its recent monthly high against the Dollar, dropping to approximately 1.2610 (current as of time of writing), just ahead of Bank of England Governor Andrew Bailey’s scheduled speech this evening. GBP|EUR has traded fairly flat since dropping from its monthly high of 1.1740 last week, currently trading at…
Read MorePound Struggles for Support, Euro Faces Economic Uncertainty, and Dollar Gains Momentum
GBP Sterling is looking for support after a significant drop against the Dollar on Tuesday. The GBP|USD pair faced downward pressure as investors rethought the positive outlook supporting the rise in risk-related assets. Additionally, concerns about a worsening recession and a delicate manufacturing sector within the United Kingdom have made the Pound less attractive. At…
Read MoreSterling’s Steady Surge, Euro’s Resilience, and Dollar’s Dynamics
GBP Last week witnessed a rally in GBP|EUR up to 1.1660, spurred by the release of PMI figures surpassing expectations. However, the pair faced resistance at the key 1.17 level, which it couldn’t breach. The disappointment in Eurozone PMI numbers further added to Sterling’s strength. Although it fell short of reaching 1.17, the upcoming release…
Read MoreDoom & Gloom Sentiment for the UK & Eurozone
GBP As expected, there was a lot of volatility in the market last week. Elevated interest rate hike expectations provided Sterling with strength at the beginning of the week, with GBP|EUR peaking at 1.1770 and GBP|USD at 1.2800. However, the run for Sterling was short lived as more doom and gloom of a UK recession…
Read MoreTurbulent Week for the Pound Ahead
GBP Anticipation of more interest rate rises from the BoE surfaced last week, helping breathe some strength back into the Pound, which was much needed after a week of gloomy data releases around the UK economy. RICS (Royal Institution of Chartered Surveyors) reported that the outlook for the UK housing market is reaching levels not…
Read MoreRecessions, Inflation & Rate Hikes
GBP Strong employment data saw Sterling take a jump at the back end of last week, bolstered by record wage growth and elevated rate hike bets. We’ve now seen 13 consecutive hikes, with rates being the highest since April 2008. Another hike seems more than likely on the BoE’s next decision on August 3rd. BoE…
Read MoreBoE Rate Hike Expected
GBP The pound rallied by just under a percent last week versus the dollar as markets priced in 15bp of tightening by the Bank of England by the December 2021 meeting with a further 75bp expected next year. This led to cable being at it’s highest since the start of October which has taken the…
Read MoreJobs Report Key for Further Dollar Strength
GBP The pound weakened against every G10 currency last week as the markets lost conference in the UK economy due to energy and stagflation concerns. What is most concerning for sterling is this weakness wasn’t reversed with hawkish comments from Andrew Bailey and the OIS curve indicating that a markets have priced in a interest…
Read MoreMarkets Await Fed and BoE
GBP The pound managed to stay flat against the euro but lost half a percent to the dollar in a week which saw strong inflation numbers but poor retail sales. It would seem markets are starting to weigh up the possibility of global stagflation as prices rise but economic output fails to increase. One of…
Read MoreAll Eyes on the ECB
GBP The pound finished the week down against both the dollar and euro despite the change in tone from the Bank of England and better than expected CPI figures. Two speeches last week from Monetary Policy Members Ramsden and Saunders were more hawkish than the markets expected, and sterling rallied off the back of it,…
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