Posts Tagged ‘FED’
Heads 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…
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 MoreStrong Wage & Inflation Data Provide Support for Sterling amid Recession Concerns
GBP Wage growth and inflation data were both reported stronger than expected last week. The ONS reported “In April to June 2023, the annual growth for regular pay (excluding bonuses) was 7.8%. This is the highest annual growth rate since comparable records began in 2001.” Statista reported “UK inflation rate was 6.8 percent in July…
Read MoreWill Thursday’s Decision Provide Further Strength for Sterling?
GBP After falling to multi-month lows against the Euro after inflation data, Sterling has started to regain some ground, outperforming most G10 currencies last week. Most of the movement for GBP|EUR & GBP|USD was driven by factors on the other side of the pair rather than Sterling itself. However, this could change next week, depending…
Read MoreIs BoE’s Monetary Policy finally working?
GBP Following the release of UK inflation figures on Wednesday, Sterling dropped against all G10 currencies. Official inflation for June was confirmed at 7.90%, a 3.0% drop compared to market expectations and a 0.80% drop from last month’s figures. These figures are still way above the BoE’s target rate of 2%, however, is the drop…
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 MoreHawkish BoE Helps Sterling Recover
GBP The pound has had a good start to October recovering by 1.6% versus the dollar and 2% against the euro. This rally has been fuelled by the recent reactions from central bankers to rising inflation rates with the Bank of England being seen as the first to raise rates. This was further backed up…
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