Posts Tagged ‘PMI’
Momentum 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 MorePound Holds Firm Ahead of BoE Decision, Euro Struggles, and Dollar Gains on Market Uncertainty
GBP The British Pound is behaving like a safe-haven currency as markets react to the latest U.S. tariff announcements from President Trump. While the U.S. Dollar is strengthening, the Pound is holding up well. This suggests that investors see the UK as less vulnerable to tariffs compared to major exporters like the Eurozone. The UK…
Read MoreMarkets Brace for Policy Shifts and Key Data: GBP, USD, and EUR in Focus
Overview In the upcoming week, the market is poised to react to significant economic data releases and the initial policy actions of President Donald Trump’s second term. The focus will be on the British Pound (GBP), the US Dollar (USD), and the Euro (EUR), as traders assess the implications of new economic policies and key…
Read MorePound Gains as BoE Eyes Cautious Easing; Euro Stagnates Amid Weak Data; Dollar Under Pressure Ahead of Key Fed Decision
GBP The Pound showed strength against its major peers during this morning’s session, driven by expectations that the Bank of England will slow its policy-easing cycle compared to other central banks. Despite a noticeable slowdown in UK services inflation (a key indicator closely watched by BoE policymakers) the reduction hasn’t been sufficient to trigger aggressive…
Read MoreSterling Showing Strength, Euro Awaits ECB Speech & Dollar Struggles for Recovery
GBP Sterling has faced notable volatility over recent weeks, primarily due to the Bank of England’s decision to maintain interest rates at 5.25% for the sixth consecutive time on May 9th. This decision initially triggered a sharp sell-off, causing GBP/EUR to dip to around 1.1605 and GBP/USD to fall to approximately 1.2450. However, both currency…
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 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 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 MorePound’s Rebound, Eurozone Expectations & Dollar’s Rollercoaster
GBP The British Pound had quite a journey last week. The Bank of England (BoE) decided to keep things stable by maintaining the interest rates at 5.25% for the second time in a row. This decision injected some strength into the Pound. New inflation forecasts from the BoE have predicted that consumer inflation might cool…
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 More