Posts Tagged ‘Sterling’
Hard Brexit or sacrifice UK sovereignty?
STERLING Sterling finished last week on the front foot, rallying on Friday after UK Q1 GDP was revised slightly higher. GBP/USD had touched its lowest level since November last week but bounced back above 1.32 on Friday, although it has retreated to around 1.3150 this morning. Brexit concerns are rearing their heads again after weekend…
Read MoreBank of England signals August interest rate rise
Sterling Sterling rallied higher on Thursday after the Bank of England switched their interest rate votes to 6-3. GBP/USD hit year-to-date lows on Thursday but bounced on the BoE decision. Brexit related uncertainty had also provided a weight, but this dissipated as Prime Minister Theresa May avoided a rebellion midweek. On the event calendar…
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…
Read MorePrepare for the World Economy’s Most Important Week of the Year
This week could be the most important week of the year for the global economy according to Bank of America, as President Trump meets Kim Jong-un, MP’s vote on the Brexit bill along with the Fed, ECB and BoJ all meeting. STERLING Theresa May’s flagship Brexit legislation returns to the lower House of Commons after…
Read MoreEuro slides against Sterling
STERLING Sterling got off to a slow start to the trading week with most UK markets closed yesterday and little Brexit related activity over the weekend. Recent Bank of England rhetoric has also been relatively uneventful with Carney sticking to his view last week that the first-quarter slowdown was temporary. Investors will be on the…
Read MoreSterling slides to this year’s low
STERLING Sterling found some support towards the end of last week amid reports that the UK could remain in the customs union until 2020. Earlier in the week Theresa May is reported to have said that Brexit negotiations are at an impasse because neither of her current options for a customs deal with the EU…
Read MoreBank of England keeps interest rate at 0.5%
STERLING Although Sterling finished Friday on the front foot, the UK currency took a hit earlier in the week after the Bank of England turned a touch more dovish. Policymakers said they expect inflation to fall back to target faster than previously expected and see the need for only limited tightening over the forecast horizon.…
Read MoreSterling struggles as BoE rate decision approaches
STERLING Sterling was rocked last week by a string of weaker-than-expected macro data releases and negative Brexit headlines. It has seen a better start to the week however with M&A news leading GBP/USD higher yesterday where UK markets were closed for the bank holiday. Investors are now looking ahead to Thursday’s Bank of England meeting…
Read MoreSterling slides on Rudd's resignation
STERLING Sterling fell sharply on Friday after data showed the UK economy almost came to a standstill in the first quarter, posting a GDP print of just +0.1% quarter-on-quarter versus forecasts for a gain of +0.3%. The data has dampened expectations for an interest rate increase at the Bank of England next month to less…
Read MoreBrexit negotiations hit roadblock over Irish border issue
STERLING Sterling traders were kept on their toes last week with a flurry of tier-one data releases and central bank rhetoric. The pound was already on the defensive following soft prints for UK wages, CPI and retail sales but lost further ground after comments from Bank of England Governor Carney on Friday. He noted that…
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