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Rational Thinking - GBP approached two...Last Week GBP: GBP approached 2 year lows Mark Carney warned British banks should hold enough capital to cope with a no deal Brexit USD: Strong Non-Farm Payroll figures caused Dollar Bull Run expecting US rate hike Jerome Powell however cited likelihood of interest rate cuts EUR: IMF Report...Market news
Bank of England Members Mention Rate CutGBP The Bank of England might need to cut interest rates to almost zero after a no-deal Brexit, while repeated Brexit delays could also make a rate cut necessary, senior Bank of England official Gertjan Vlieghe said on Friday. Vlieghe’s comments, in a speech in London, went further than those of...Market news
Carney Gives Pound Some RespiteGBP The pound showed some resolve on Thursday as Mark Carney told law makers British banks hold enough capital to cope with a no-deal Brexit and a global trade war simultaneously, the Bank of England said on Thursday, although a disruptive Brexit would still cause major turbulence for financial...Market news
Dollar Weakens as Powell Opens Door for...USD Fed Chair Jerome Powell testified in front of Congress on Wednesday, and his dovish comments saw the dollar slide. Powell opened the door to future interest rate cuts, which all but confirmed market expectations that the Fed will cut rates going forward. He described how uncertainties since the...Market news
Sterling Plummets To 2-year LowsGBP Yesterday the pound fell towards its lowest levels in more than two years on Tuesday against the backdrop of a worsening economic outlook and rising fears about a no-deal Brexit and a new Prime Minister. Jeremy Corbyn challenged the next Tory leader to hold another referendum before taking...Market news
Rational Thinking - Strong US Data...Last Week GBP: UK Services PMI missed expectations with a figure of 50.2 50.2 is very close to the no growth level of 50 Follows surveys in manufacturing and construction that also saw contraction Mark Carney warns about increasing risks that come from a no-deal Brexit Carney mentioned that the...Market news
Sterling Falls To 6-month LowsGBP Sterling is trading near six month lows as uncertainty over Britain’s departure from the European Union is continuing to weigh heavy on the pound. Investors have been offloading the currency and buying other assets like gold as they brace for lower British interest rates in response to slowing...Market news
Strong US Data Helps US DollarUSD The dollar strengthened late Friday as U.S. job growth rebounded strongly in June as government hiring surged but persistent moderate wage gains and mounting evidence that the economy was losing momentum could still encourage the Federal Reserve to cut interest rates this month. The U.S...Market news
Eurozone Economic Slowdown Not TemporaryEUR The Eurozone’s slow growth is no longer temporary says Governing Council member Olli Rehn. The slowdown in the euro-area should not be considered a ‘temporary dip’ and the European Central Bank should prepare in case it gets worse according to Mr Rehn. Mr Rehn also went onto say ‘’growth in the...Market news
Sterling Under Renewed PressureGBP Yesterday saw Pound Sterling under renewed pressure as UK Services PMI data missed expectations with a disappointing figure of 50.2. For the first time since late 2012, Britain’s economy has shrunk as worries about Brexit continued to weigh on the pound, and has been further compounded by...Market news
Carney Coy On Interest Rate OutlookGBP Bank of England Governor Mark Carney said a global trade war and a no-deal Brexit were growing possibilities but not certainties, and the central bank was focusing on the medium-term inflation outlook to guide its stance on interest rates. Carney also said in a speech on Tuesday that he...Market news
Rational Thinking - Dollar strengthens...Last week: USD Dollar strengthens as Fed dove says 50 basis point cut “overdone” US Consumer confidence hits 21 month low in June Trade talks at G20 between China and US appear to be positive GBP Boris Johnson reaffirms stance to take UK out of EU by October 31 This week: Key announcments US ISM...Market news
Chancellor Weighs In On Leadership...GBP Chancellor Philip Hammond challenged the two rivals to become Britain’s Prime Minister over their spending promises on Monday, warning that walking away from the European Union without a deal would use up the extra money in the budget. With former London Mayor Boris Johnson and Foreign...Market news
US Economic Data Advocates Interest...USD The dollar dipped on Friday after U.S. economic data confirmed the likelihood of a July interest rate cut, although foreign exchange markets seemed on hold as investors awaited the meeting between the United States and China at the G20 summit in Japan. The core U.S. personal consumption...Market news
US Economic Growth Picks UpUSD U.S. economic growth accelerated in the first quarter, the government confirmed yesterday, but the export and inventory boost to activity masked weakness in domestic demand, some of which appears to have prevailed in the current period. Gross domestic productivity increased at a 3.1% annualized...Market news
Boris Johnson Still Aiming for October...GBP Sterling dropped back towards five-month lows on Wednesday after Boris Johnson reaffirmed his desire to take Britain out of the European Union by the 31st October deadline, with or without a deal. Boris Johnson is still the clear favourite in the race to replace Theresa May, and markets are...Market news
US Consumer Confidence DropsGBP Consumer confidence in the US fell to a 21-month low in June, with households a bit more pessimistic about business and labour market conditions amid concerns about a recent escalation in trade tensions between the United States and China. Consumers are seeing the trade war with China as an...Market news
Boris Johnson Needs EU Co-operationGBP Boris Johnson has admitted he would need EU co-operation to avoid a hard Irish border or crippling tariffs on trade in the event of no deal. Speaking on Monday evening, Johnson went onto say ‘it’s not just up to us’ implying corporation is needed with the EU to avoid a no deal Brexit...
