Monthly Currency Market View September 2023

In the UK, grocery price inflation has continued to ease over the past month, with certain staples such as milk and sunflower oil becoming more affordable at supermarkets. Nevertheless, prices remain higher compared to the previous year, across all supermarket shelves, according to analysts at Kantar. Kantar’s latest report indicates that price inflation across supermarkets and … Read more


Monthly Currency Market View August 2023

Despite economic challenges, Retail Sales rose by 0.7% from the previousmonth, showing improvement from a downwardly revised 0.1% increase in theprior month, and surpassing market expectations of 0.2%.This marked the third consecutive month of growth in retail trade, with the steepest pace seen so far. USD – The yield curve inversion and its past association … Read more


Monthly Currency Market View July 2023

In a highly significant development, the President of the United States Joe Biden, and the UK’s Prime Minister Rishi Sunak, held a press conference at the White House. During which, the duo unveiled their intentions to strengthen economic ties between the two nations. USD – JP Morgan predicts UK interest rates to peak at 5.75% … Read more


Monthly Currency Market View June 2023

As the market is now pricing in a 6% UK base rate for the end of 2023, we take a look at the important events that happened this month. GBP – The International Monetary Fund sees no recession in the UK this year USD – US debt ceiling suspended until 2025 EUR – Germany falls … Read more


Monthly Currency Market View May 2023

The resignation of Dominic Raab, one of Prime Minister Rishi Sunak’s closest allies over allegations of bullying officials represents a severe setback to his premiership. Download our Monthly Currency Market View as we take a look at the key trends and consider the many diverse events that shaped the global currency markets in May 2023.


The pound held firm against the euro and dollar

GBP On Wednesday, the pound held firm against the euro and dollar amidst a relatively light economic calendar.  Sterling has found support from the past week’s Bank of England decision which was more hawkish than expected. Despite the recent banking uncertainty, the British banking system has remained stable, and as a result, the value of … Read more


UK interest rates are now at their highest level since 2008

GBP The pound held its ground on Thursday after the Bank of England raised interest rates to 4.25% with a 25 basis points rise. Interest rates are now at their highest level since 2008 in a bid to cool higher inflation experienced by the UK. A majority from the Monetary Policy Committee voted for a … Read more


US Fed takes interest rates to five percent

USD The dollar fell yesterday afternoon following the Federal Reserve interest rate decision which saw the US central bank increase interest rates by 25 basis points, taking US interest rates to their highest level since September 2007. The voting pattern was unanimous in so far that all voting members opted for a 25 basis points … Read more


UK CPI inflation data beating market expectations

GBP The pound edged higher on Tuesday morning after the release of CPI inflation data that beat expectations in February and raised the prospects of further Bank of England interest rate rises in the months ahead. Inflation rose year-on-year to 10.4% in February, higher than a previous reading of 10.1% and beating market expectations of … Read more


Monthly Currency Market View March 2023

Download our Monthly Currency Market View as we take a look at the key trends and consider the many diverse events that shaped the global currency markets in March 2023.


US Fed to take a less hawkish stance on interest rates

USD The dollar ended the week lower against a basket of currencies as investors placed bets that the Federal Reserve will adopt a less hawkish stance following weaker data and last week’s collapse of two mid-sized banks. Focus on Friday turned to the March release of the Michigan Consumer Sentiment Index which showed a deterioration … Read more


ECB raises interest rates by 50 bps to 3.5%

EUR The euro rose against the US dollar as the European Central Bank raised interest rates as planned by 50 basis points despite the current banking crisis. The ECB raised interest rates to 3.5% from a previous 3% in a bid to cool inflation. The central bank has raised rates at the fastest pace on record … Read more


Sterling gets a boost after Windsor Framework announcement

GBP The pound rallied on Monday after an agreement had been reached on the Northern Ireland protocol between the UK and the EU. British Prime Minister Rishi Sunak reported that a breakthrough had been made and EU Commissioner Ursula Von Der Leyen stated that they “have removed any sense of a border in the Irish Sea”. The … Read more


US personal consumption increases, positive sign for the economy

USD The dollar traded close to seven week highs on Friday as the latest data showed US inflation remained persistent, reinforcing expectations US interest rates could remain higher for longer. Fuelling Friday’s rally in the dollar was the release of personal consumption expenditure (PCE) price index which measures the average amount of money consumers are … Read more


Slowdown in UK inflation eases pressure on Bank of England

GBP The pound fell on Wednesday after the release of UK inflation data. The Consumer Prices Index (CPI) rose by 10.1% in the twelve months to January 2023, down from 10.5% in December 2022. This reading also came in lower than what the market had predicted at 10.3%. The decline of CPI saw Sterling fall and bond yields … Read more


UK wages grow faster than expected but are still behind inflation

GBP Sterling appreciated this morning as wage data in the UK grew more than expected, placing further pressure on the Bank of England to hike interest rates further next month. The data released by the Office for National Statistics, showed earnings grew at their fastest pace outside of the Covid pandemic period at 6.7% in the year … Read more


UK GDP data disappoints currency markets

GBP The pound fell after disappointing GDP data released on Friday. UK GDP declined by 0.5% in December which was more than the 0.3% forecast the market hoped for. The Office for National Statistics stated that the overall economy grew by 0% in the final quarter of the year, meaning the UK has avoided a technical recession. … Read more