Posts Tagged ‘Interest rates’
Geopolitical Tensions Drive Investors to USD
GBP Sterling took a hit, sliding to its lowest point against the Dollar since November, now hovering just above the 1.24 mark, all down to Dollar strength, mainly due to tensions in the Middle East boosting the Dollar’s safe-haven appeal. Sterling is trading better against the Euro, trading around 1.1710, with the Euro weakness mainly…
Read MoreGBP Faces Headwinds, EUR Treads Cautiously, and USD Strengthens on Robust Jobs Data
GBP Sterling faced significant headwinds during the European session on Monday, as market sentiment turned sour. GBP|USD witnessed a sharp decline, driven by the robust Nonfarm Payrolls data from the United States on Friday, which tempered expectations of a Federal Reserve rate cut in March. The strong US job creation figures, coupled with unexpected wage…
Read MoreSterling Holds Strong Amid Economic Uncertainty
GBP As household spending becomes more vulnerable and a steep pessimistic outlook emerges among business owners regarding the economic landscape, the BoE is anticipated to face challenges in reaching a decision due to persistently higher price pressures and fears of a recession. This predicament may make it challenging for policymakers to adhere to a restrictive…
Read MoreSterling’s Surge, Euro’s Insights, and USD’s Week Ahead
GBP Pound Sterling capitalised on the optimistic statements from Bank of England policy makers during their parliamentary hearings on the November Monetary Policy Report this Tuesday. Bolstered by positive November PMI readings, indicating a return to economic growth after months of stagnation, Sterling made significant gains against most G10 peers. The fiscal landscape also played…
Read MoreMPC keep interest rates on hold as probability of a cut jumps to 20%
STERLING The Bank of England kept rates on hold on Thursday via a 9-0 vote but cut growth forecasts which initially weighed on the pound, with the market now pricing in a 20% chance of an interest rate cut this year. Still, Sterling recovered into the weekend and has been trading at a two week…
Read MoreHeightened fears of a global recession after Trump threatens Mexico with tariffs
With factory activity contracting in most of Asia last month, driven by the US – China trade war, central banks are being forced to review monetary policy, with the Federal Reserve potentially being forced to cut interest rates more than once this year. To compound recessionary fears, President Trump not only threatened to levy new…
Read MoreBank of England to hold interest rates
STERLING The Bank of England’s Monetary Policy Committee meets on Thursday where they are widely expected to leave the Bank Rate on hold at 0.50%, albeit via a 7-2 vote (most economists have pencilled in the next hike for August). Recent data releases have been somewhat mixed although investor focus was distracted last week by…
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