Posts Tagged ‘Reeves’
The Budget Test: Will Sterling Sink or Stabilise?
Interest Rates & Inflation Snapshot Region Interest Rate Latest Inflation UK 4.00% 3.6% Eurozone 2.15% 2.1% US 4.00% 3.00% GBP – All Eyes on Thursday’s Budget Sterling starts the week steady, but markets are clearly nervous ahead of Chancellor Rachel Reeves’ first Budget on Thursday. The pound is still carrying a small risk premium, with…
Read MoreUK Labour Market Cools; Government Spending Review to Shape Sterling Outlook
GBP The Pound Sterling weakened to around 1.3456 against the US Dollar during European trading on Tuesday. This came after the UK’s Office for National Statistics reported a slowdown in the labour market for the three months ending April. New jobs added totalled 89,000, down from 112,000 in the previous quarter, while the unemployment rate…
Read MoreMarket Update: GBP Strengthens, USD Weakens Amid Tariff Concerns, EUR Remains Under Pressure
Overview The foreign exchange market experienced notable fluctuations over the past week, influenced by political developments, economic data releases, and shifts in monetary policy. This report provides an analysis of the GBP, USD, and EUR, highlighting key events from the previous week and offering insights into the upcoming week. British Pound (GBP) Recent Developments: Spring…
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 MoreSterling Holds Firm, Euro Weakens, Dollar Gains as US Election and Central Banks Take Focus
GBP Sterling has been one of the best-performing major currencies in 2024, thanks to the Bank of England’s cautious stance on cutting interest rates and better-than-expected economic data earlier in the year. If the upcoming budget is well received, and the BoE continues to take a measured approach to rate reductions, the Pound could maintain…
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