Coronavirus grips FX markets

Last week: GBP Coronavirus grips FX markets. UK-EU trade talks commence. UK interest rate cut depends on budget. USD Emergency 0.5% rate cut. Strong employment data. This WEek: GBP Annual budget. USD CPI MoM. Core CPI MoM. EUR Main refinance rate. Monetary Policy Statement. ECB Press Conference.


Strong US data lifts dollar

Last week: GBP UK could end transition period without trade deal. Boris Johnson willing to leave on WTO terms.  Better than expected construction data. Potential trade deal far from concluded. Investors’ nerves saw 2% fall.  USD Private sector payrolls report surpassed market expectations. Non-farm payrolls came in above expectations. Positive data should keep interest rates … Read more


Sterling rallies to one month-highs

Last week: GBP Positive PMI data. Fears of an interest rate cut. Rates unchanged at 0.75%. UK formally leaves EU. USD Coronavirus fears. No interest rate cut. Key announcements: USD ISM manufacturing. ADP non-manufacturing. Non-farm employment. Unemployment change. EUR Lagarde to testify economy and monetary policy.


Withdrawal bill passed through Parliament

Last week: GBP Investors began to doubt interest rate cuts. 50% probability of a rate cut, down from 70%. Withdrawal Bill passed through Parliaments. Trade talks scheduled to begin February. eur Interest rates and stimulus program unchanged. ECB launched broad review of policy. 2% under inflation target. ECB rate-setters made no policy changes. This week: … Read more


Further Brexit Party Withdrawals

Our Rational Thinking series provides key insights into the latest economic on-goings and provides detail on how these events affect currency markets globally. sdfsdfsfdaf