21/01/2022

Sterling loses ground after Retail Sales data missed expectations

GBP Sterling lost some of its recent momentum this morning as UK Retail Sales data fell below market expectations. According to data released by the Office for National Statistics, UK Retail Sales contracted by 0.9% year on year for December short of forecasts of 3.4% growth. The month on month figure also showed a greater … Read more

20/01/2022

Covid plan B restrictions end in England

GBP The pound was further supported on Wednesday by strong inflation data which came above market expectation. UK CPI inflation for December came in at 5.4% year on year, beating market expectations of 5.2% and surpassing November’s number of 5.1%. Core CPI inflation read at 4.2%, breezing past the market’s expectation for 3.9%. Above expectation … Read more

19/01/2022

Sterling takes hit after PM’s continued pressure to resign

GBP Yesterday we saw Sterling come off its recent highs against both the USD and EUR even after strong UK employment data. It is possible that the political uncertainty surrounding Prime Minister Johnson has weighed on the pound. The Prime Minister yesterday again denied accusations by his former adviser that he had lied to parliament … Read more

18/01/2022

Yesterday saw markets trade sideways across the board

GBP A quiet start to the week, yesterday, saw markets trade sideways across the board. In the US, Martin Luther King day, resulted in a lack of liquidity and trading in the market but it is business as usual today. This being said we expect another quiet day for markets. Today’s most notable release was … Read more

17/01/2022

Sterling remains well supported

GBP Last week the pound remained well supported against both the USD and EUR as we headed into the weekend. Sterling surged more than 4.3% off the December 2021 low against the dollar and approached two year highs against the euro. Strength against the dollar came after the release of extremely disappointing US retail sales … Read more

14/01/2022

Markets focussed on UK GDP and industrial data releases

GBP Sterling has held steady this morning after drifting lower at the end of yesterday. This morning markets focussed on data releases: UK GDP was expected to show growth picked up in November to 0.4% from 0.1% in October. The reading actually came far stronger at 0.9% for November. We also had UK industrial production … Read more

13/01/2022

Investor appetite for the British currency remains

GBP Sterling traded close to fresh highs against the euro and dollar yesterday. Investor appetite for the British currency remained amid expectations of higher interest rates in the UK this year. In recent weeks, we have seen sterling benefit from short term monetary policy tightening expectations with interest rate hikes now being priced in for … Read more

12/01/2022

Markets seem unaffected by allegations of Cabinet lockdown gatherings

GBP The pound has remained supported throughout the beginning of this week as currency markets continue to bet on the UK economy outlasting the omicron variant without having to impose further restrictions to the country. An increased probability of further near term rate hikes by the Bank of England also continues to give Sterling a … Read more

11/01/2022

The pound remains well supported as hopes of a rate hike next month

GBP The pound remains well supported as hopes of a rate hike next month along with covid cases continuing to fall has helped the pound hold its value against both the euro and dollar. The UK government is planning to cut the self-isolation period from seven to five days, a move which could bolster the … Read more

07/01/2022

Sterling traded close to recent highs against the USD and EUR

GBP Sterling traded close to recent highs against the USD and EUR yesterday in a day void of any real market moving data for sterling. The pound has found considerable support of late from a combination of the UK government resisting re-introducing lockdown restrictions, but also, heightened expectations that the Bank of England could tighten … Read more

04/01/2022

Sterling Hits Highs Coming into 2022

Let me first wish you all a happy New Year and we thank you for your support throughout 2021. Sterling finished the 2021 in a strong fashion as it hit its highest level against the euro since the end of February 2020 as easing concerns about the economic impact of the pandemic boosted risk-on currencies, … Read more

23/12/2021

Sterling Gaining Momentum

GBP The pound gained against both Euro and Dollar on Wednesday as optimism surrounding Brexit and the Omicron variant edged sterling higher. It is deemed that the Omicron variant is not as deadly as first suggested. Furthermore the number of cases of covid remains downbeat with the latest figures of 106,122 daily infections. In regards … Read more

22/12/2021

Sterling Fights Back

Sterling slightly pulled back against recent lows yesterday, with markets seeing a broader recovery of riskier assets this week so far. The UK government announced yesterday there will not be a lockdown this side of Christmas but they can not rule out a circuit breaker shortly after, speculation suggests this could be as early as … Read more

21/12/2021

Growing Covid Concerns In UK Dampens Sterling

Sterling struggled to find ground across the board as investors begin to weigh up growing covid concerns in UK. Daily records have continued to be broken, with another 91,743 new cases reported yesterday. Scientific advisors have already called for further restrictions to stem the current outbreak but this recommendation has already been opposed by almost … Read more

20/12/2021

Sterling Performs Against Majors

Sterling raced higher against the Euro, Dollar and its major peers after the Bank of England decided to go ahead and raise interest rates. This move was a surprise to investors as it was expected the Bank of England would possibly hold off until February due to the uncertainty surrounding new Covid restrictions and the … Read more

17/12/2021

Bank Of England Raise Interest Rates

GBP The Pound jumped sharply yesterday but ultimately failed to hold onto its gains after the Bank of England shocked the market when they voted to raise interest rates to 0.25%. The central bank voted almost unanimously at 7-1 to raise the base interest rate by 15 basis points, with Tenreyro the only member to … Read more

16/12/2021

Sterling Awaits Bank Of England Decision

Yesterday UK inflation soared to the highest level in a decade, breaching 5% months earlier than expected. The headline figure masks much steeper rises for everyday items such as fruit and vegetables which is putting a squeeze on household purses and at the same time stripping consumer confidence. Consumer confidence has also been weakened as … Read more

14/12/2021

Sterling Remains Under Pressure

The pound remained under pressure at the start of the week as new covid restrictions weigh on the British currency. Last week’s move to ‘Plan B’ caused Sterling to be sold but the sell off was short lived as the pound recovered slightly on Monday against both the Euro and Dollar. The severity of the … Read more

13/12/2021

New Covid Measures May Dampen Sterling

This week eyes will now turn to Thursday to see if The Bank of England would deliver a market moving surprise by deciding to raise interest rates but market expectations for the possible hike has slipped significantly over the past two weeks. The uncertainty surrounding the Omicron variant and the prime minsters decision the tighten … Read more