Posts Tagged ‘PMI’
Sterling 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 MoreBOE Looks to Remain Dovish
GBP The pound was the third best G10 currency last week as it strengthened by 1.2% versus the dollar and 0.3% against the euro. Falling Covid numbers helped to give sterling a boost, as investors regained confidence in UK economy and are no longer worried about restrictions needing to be put back in place. In…
Read MorePound Needs BOE’s Support to Push Higher
GBP The pound had a volatile time last week with both positive and negatives driving the currency up and down. On Thursday, the Bank of England Governor Andrew Baily made a speech where he warned overreacting to “temporary” inflationary pressures, prompting some re-pricing in tightening expectations and sell off in Sterling. On the positive side,…
Read MoreThe First ever virtual Jackson Hole Symposium
GBP The pound had a turbulent second half of last week, on Wednesday it nearly equaled the year high against the dollar before dropping a percent and a half. Cable then repeated this pattern over the course of Thursday afternoon and into Friday. Against the euro we saw a similar volatility of 1.4% towards the…
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