25/10/2021

Sterling Fights Back After Losses Against Majors

GBP Sterling lost some ground against the Euro on Friday as some mixed UK economic data prompted Sterling investors to re assess their expectations for the next rate hike. Sterling did have a positive as the UKs latest PMI figures came in above expectation this month, which also helped Sterling cap the losses against the … Read more

22/10/2021

Sterling holds strong against euro

GBP Sterling traded close to twenty month highs against the euro, but lost ground against the dollar yesterday as a variety of uncertainties in the UK forced investors to the safety of the dollar. One potential cause for sterling failing at a key level against the dollar may be owed to renewed concerns regarding the … Read more

21/10/2021

Sterling holds amid inflation data

GBP Yesterday saw the release of the latest UK inflation data. The Office for National Statistics showed consumer prices fell from 3.2% to 3.1% in the month of August. Despite this, the pound was still seen trading at one month highs against the dollar and around twenty month highs against the euro. While the reading … Read more

20/10/2021

Sterling pushes back against majors

GBP The pound pushed back to recent twenty month highs against the euro and gained against the dollar on Tuesday as investors now anticipate an interest rate hike. Furthermore, market sentiment amongst investors changed to risk-on meaning that the pound benefits when stock markets are rising. The euro and dollar tend to benefit when the … Read more

19/10/2021

Bank of England looking to raise interest rates

GBP After a quiet day for market data, expectations that the Bank of England will raise interest rates as early as next month jumped after Governor Bailey confirmed the BoE would have to act to curb rising inflation. The yield, or interest rate, on the UK’s two-year government bonds jumped to its highest level since … Read more

18/10/2021

Sterling gains on all major currencies

GBP Last week sterling had broken higher throughout the course of the trading week, clearing the 1.37 boundary. The market looks as if it is ready to continue trading upwards after reaching back to monthly highs, as mixed data coming out from the US economy undermine speculation for a shift in Federal Reserve policy. The … Read more

15/10/2021

Sterling hits a two week high

GBP Sterling hits a two week high on Thursday against the euro, building on the previous gains throughout the week. The market has been focusing on hopes a post-Brexit trade war with the European Union will be avoided and on expectations the Bank of England (BoE) will increase interest rates this year. The BoE, facing … Read more

13/10/2021

Sterling finds some support against dollar

GBP Sterling found some support yesterday as the reactions to the UK unemployment data continued. We saw unemployment rates drop from 4.6% to 4.5%, meaning the figure is now at its lowest point in a year. Warnings also suggest caution should be applied to these figures as the numbers are still being affected by factors … Read more

11/10/2021

Non-Farm Payroll disappoints

USD Friday’s highly anticipated Non-Farm Payroll data came in at 194k jobs added in September which was a big miss as the consensus forecast was expected to be 500k. The average hourly earnings increased by 0.6% vs 0.4% the month prior – the Federal Reserve will be pleased to see that wages are increasing despite … Read more

08/10/2021

Sterling looking to gain traction

GBP Settling gas markets and improving equities enabled a backdrop that has a tendency to benefit the pound, but market sentiment will be challenged by a huge jobs report from the US later. Providing risk-on market conditions continue into Friday’s close, the pound will complete a rare weekly advance against the dollar and a second … Read more

07/10/2021

Sterling finds ground against Euro

USD The ADP employment data released yesterday showed private payrolls increased by 568,000 last month, marginally beating forecasts of 428,000. This will look to further cement the conditions Federal Reserve Chair Jerome Powell has stated will need to be met for the Fed to start tapering their asset purchase scheme in November. The ADP is … Read more

05/10/2021

Sterling gains back on losses

GBP Yesterday sterling regained some of the losses experienced last week as markets continue to digest a list of ongoing issues. Most notably, rising global inflation worries meant sterling, alongside other risk assets, was sold off heavily with investors preferring to hold safe-haven assets. To put it into perspective, by mid week the pound was … Read more

30/09/2021

Sterling loses ground against both majors

GBP Sterling rates fell against both majors to multi months lows trading towards the 1.34, and towards 1.15 for GBP/EUR mark. As the pound is a risk sensitive currency, investors have now started to put more assets into safe-havens adding even more pressure on sterling’s strength. The highly talked about energy crisis has now been … Read more

29/09/2021

Sterling falls to month lows

GBP Yesterday the pound fell to multi month lows against both the pound and euro, a storyline that may now be apparent for the foreseeable future. A combination of factors has caused investors to worry about the UK economy over the next few months. Most notably, fuel shortages at forecourts has caused a spike in … Read more

28/09/2021

Euro falls against major currencies

EUR The euro fell against both the dollar and sterling on Monday as dovish comments from European Central Bank (ECB) President Lagarde and political uncertainty in Germany made the euro less attractive for investors. Speaking yesterday in the European Parliament, Lagarde set out the ECB’s new policy strategy. Within this strategy, Lagarde noted that inflation … Read more

24/09/2021

The Fed will look to begin tapering before the end of 2021

GBP After the hawkish comments from the Federal Reserve (Fed) on Wednesday evening at their interest rate and economic policy projections meeting, it was the Bank of England’s turn on Thursday. The BoE voted unanimously to keep interest rates at the historic low of 0.1%, but warned of severe shortages of workers and raw materials … Read more

23/09/2021

The Fed will look to begin tapering before the end of 2021

USD Yesterday saw the eagerly anticipated Federal Reserve (Fed) meeting and bullish dollar investors were not disappointed. The Fed turned hawkish in its guidance on quantitative easing and interest rates for the coming year. The signal was given that the purchasing programme will end sooner than previously expected and that the interest rate will be … Read more

22/09/2021

Sterling is considered a risk-sensitive currency

GBP Sterling fell on Tuesday as market sentiment shifted to risk-off amid a sell-off in global stock markets as well as investors acting cautiously ahead of key interest rate decisions for both the UK and US. Sterling is considered a risk-sensitive currency and usually trades in tandem with global stock markets. Global stock markets were … Read more

21/09/2021

Sterling under pressure

GBP The pound remains under pressure as the UK’s energy crisis and a global market sell-off continue. Sterling is proving to be very vulnerable to a surge in gas prices as not only does it threaten to cut off UK consumers’ budget but also hampers the industrial output. This is because the UK relies heavily … Read more

20/09/2021

Sterling takes hit but still gains on the Euro

GBP Sterling was down for much of last week and was one of the worst performing currencies, but still managed to gain on Friday against the euro. Last week’s comments from the European Central Bank (ECB) confirming inflationary rises as transitory, and that they are in no rush to taper their current stimulus, means the … Read more