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
10/01/2022 Sterling ended the year in positive territory and remains trading strong against most majors GBP Sterling has held onto recent gains as the spread of the Omicron variant continues to hinder the pace at which the global economy can recover from the Coronavirus pandemic. After the Bank of England’s decision to raise interest rates, the pound ended the year 2021 in positive territory and remains trading strong against most … 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
