Posts Tagged ‘Inflation’
Markets Start the Week Cautiously as UK Politics, Middle East Tensions and Inflation Risks Drive FX Moves
GBP – Political uncertainty keeps Sterling under pressure The Pound started the week slightly weaker, particularly against the Euro, as markets reacted to fresh political uncertainty in the UK. Labour’s poor local election results have increased pressure on Prime Minister Keir Starmer, with growing speculation around his leadership and the future direction of government policy.…
Read MoreCentral Banks Take Centre Stage as Inflation and Oil Risks Keep FX Markets on Edge
GBP – Pound under pressure ahead of Bank of England decision The Pound has started the week under some pressure against most major currencies, although it is holding slightly firmer against the US Dollar. The main focus for markets this week is the Bank of England interest rate decision on Thursday. Markets currently expect the…
Read MoreVolatility Returns: Inflation Data and Policy Signals Drive FX Markets
Central Banks ECB: Left interest rates unchanged last week, maintaining a cautious stance as inflation trends closer to target. Policymakers emphasised a meeting by meeting approach, remaining data dependent. BoE: Also left interest rates unchanged, keeping policy restrictive as inflation remains above target. Future easing is expected to be gradual and data driven. United States…
Read MoreMarkets This Week: Inflation, Jobs and Policy Moves
Rates & Inflation Overview Region Interest Rate Inflation UK 4% 3.8% EU 2.15% 2.1% US 4% 3% Key Market Updates United Kingdom (GBP) Wednesday 12th – Consumer Price Index (07:00) Leading indicator of inflation. Market Impact:A further decline would typically weaken the GBP. The UK remains around 1.8% above the 2% inflation target. A rise…
Read MoreMomentum Returns to Markets as the Dollar Strengthens on Strong US Data
Last week began quietly, with limited economic data released on Monday and Tuesday. However, Manufacturing PMI in the United States continued to decline, recording a reading of 48.7. On Tuesday, President Lagarde announced that Bulgaria will adopt the Euro on 1 January 2026. Small and medium-sized Bulgarian enterprises are expected to save roughly one billion…
Read MoreMarkets Brace for Pivotal Week: BoE and Fed Decisions in Focus
Interest Rates & Inflation Region Interest Rate Inflation UK 4.0% 3.8% EU 2.15% 2.1% US 4.5% 2.9% GBP Sterling faces a pivotal week with key data releases ahead of the Bank of England’s policy decision on Thursday. EUR The Pound to Euro slipped back towards 1.1550 last week after UK growth data disappointed and the…
Read MoreJackson Hole Countdown: Will Inflation Tip the Scales?
Summary A data heavy week lies ahead, culminating in the Jackson Hole Economic Policy Symposium. Markets are poised for significant FX moves around UK CPI and activity data, FOMC minutes and Chair Powell’s address, and President Lagarde’s remarks alongside Euro Area PMIs. The near term direction for USD, GBP, and EUR will hinge on whether…
Read MoreKey Economic Data and Political Moves Set to Drive FX Markets This Week
Interest Rates & Inflation Region Interest Rate Inflation UK 4.00% 3.6% EU 2.15% 2.0% US 4.50% 2.7% Last week in FX markets: The pound experienced notable volatility, with GBP/USD edging higher amid firmer UK data suggesting an uptick in economic resilience. Stronger-than-expected inflation and employment signals helped buoy Sterling against the US dollar, as markets…
Read MoreRates on Hold, Markets on Edge: Trade Deals, Inflation and Fed Pressure in Focus
Key Dates & Policy Updates UK EU US Major News Highlights Trade & Politics Equities & Commodities FX Forecasts & Market Outlook GBP/USD GBP/EUR EUR/USD & USD Summary Table Region Inflation Rate Decision Policy Outlook FX/Near-Term Forecast UK CPI 3.6% (June) 4.25% held No cut until at least Sept GBP/USD weak; GBP/EUR mean reversion to…
Read MoreMarkets Await Key Inflation Data and Spring Statement as GBP Holds Firm
GBP The Pound struggled against its major counterparts on Friday after the Bank of England (BoE) left interest rates unchanged at 4.5%. Despite a slightly hawkish tone, the decision weighed on Sterling. The Monetary Policy Committee (MPC) voted 8-1 to maintain rates, with only Swati Dhingra supporting a 25 basis point cut. Markets had expected…
Read More