Market report: pound drops as UK growth lags

GBP Sterling ended the week in decline as data showed UK growth lagging behind other countries. According to the Office for National Statistics, Q2 Gross Domestic Product (GDP) met expectations of 4.8% growth. However, although considerably stronger than Q1, where growth contracted, the figure was still much lower than pre-pandemic levels of circa 9% growth. It’s also way behind … Read more

Market report: pound stays muted despite GDP boost

GBP The pound stayed muted yesterday despite UK GDP data coming in above expectations. The domestic economy grew more than forecasted in June, with year-on-year second quarter growth coming in at 22.2%. It was expected to be 22.1%. This growth falls in line with recent expectations for a 2022 interest rate hike and is consistent with the … Read more

Market report: dollar drops after Consumer Price Index release

USD  The dollar declined yesterday following a US inflation print that highlighted the market uncertainty around Federal Reserve rates. The US Consumer Price Index (CPI) rose 5.4% year-on-year (y/y) compared to the expected 5.3%, with the market clearly expecting different things than the economists. If anything, it seemed fearful of a higher print that might tip the Fed towards tapering in September.  The … Read more

Market report: pound and dollar pile misery on euro

EUR The latest European ZEW index was released yesterday with disappointing news for the euro. The index measures analyst optimism for expected economic developments over the next six months. For the third month in a row it came in below expectations, with a reading of 42.7 down from a 61.2, and way off the expected 72. All a clear sign that investors aren’t currently … Read more

Market report: dollar and pound gain against euro

USD The dollar reached a four month high vs the euro yesterday as the market prepares for the Federal Reserve to begin tapering its stimulus package. The currency was also up against most of its other major peers. The gains build on the impact from last Friday’s strong Non Farm Payrolls. The US’s positive employment outlook now has investors seriously thinking the Fed may reduce … Read more

Market report: pound near year high vs euro

GBP Sterling was close to yearly highs against the euro last week following Thursday’s Bank of England (BoE) policy meeting.  While no policy changes were announced, the bank’s Monetary Policy Committee (MPC) acknowledged the need to ease monetary policy sooner than anticipated. This is in order to bring inflation back to 2%, the BoE’s target, over the next few years. This was the … Read more

Market report: pound gains vs euro after Bank of England meeting

GBP The pound gained against the euro after yesterday’s Bank of England (BoE) policy meeting proved more hawkish than expected. The bank signalled a rate hike could take place in 2022, putting it at least two years ahead of the European Central Bank.  August’s policy statement gave an insight to what we can expect from the BoE … Read more

Market report: pound close to month highs on Wednesday

GBP Sterling traded close to month highs against the euro and dollar on Wednesday with the British currency seemingly benefitting from the UK’s improving Covid situation. Anticipation the Bank of England (BoE) may become more hawkish in today’s meeting may also have had an impact. 29,312 new Covid cases were announced yesterday, taking the number of confirmed … Read more

Market report: pound close to month highs on Wednesday

GBP Sterling traded close to month highs against the euro and dollar on Wednesday with the British currency seemingly benefitting from the UK’s improving Covid situation. Anticipation the Bank of England (BoE) may become more hawkish in today’s meeting may also have had an impact. 29,312 new Covid cases were announced yesterday, taking the number of confirmed … Read more

Market report: Bank of England meeting key for pound’s future

GBP With investors all looking ahead to Thursday’s Bank of England (BoE) policy meeting, the pound appears to have stalled. Investors seem reluctant to dive into the currency ahead of the meeting, especially as it coincides with the release of the quarterly Monetary Policy Report. This reluctance saw the pound drop against its major peers yesterday as investor positions turned … Read more

Market report: uncertain week for the pound

GBP The pound rebounded against the euro and dollar last week, but it might not be smooth sailing over the next few days. The Bank of England’s (BoE) Monetary Policy Committee (MPC) minutes are released on Thursday and with no clear indicator of which direction they’ll go on the ‘bank rate’, volatility looms. The pound … Read more

Market report: uncertain week for the pound

GBP The pound rebounded against the euro and dollar last week, but it might not be smooth sailing over the next few days. The Bank of England’s (BoE) Monetary Policy Committee (MPC) minutes are released on Thursday and with no clear indicator of which direction they’ll go on the ‘bank rate’, volatility looms. The pound … Read more

Market report: pound staying strong

GBP The pound’s been holding steady this week as consecutive days of falling Covid cases have given investors hope for the UK economy. So much so that sterling is now the world’s top performing major currency. Investors will now turn their attention to the next Bank of England (BoE) policy meeting on August 5th. The … Read more

Market report: pound surges again

GBP The pound gained against the euro for the second day running yesterday, almost hitting levels not seen since early April. All fingers point to falling Covid numbers as the driving factor. In other good news for sterling, the International Monetary Fund (IMF) released its global forecast yesterday and awarded its biggest upgrade to Britain, … Read more

Market report: pound stays strong as Covid cases fall

GBP The pound made gains against the euro and dollar on Monday, reaping the benefits of a surprisingly dramatic improvement in the UK’s Covid situation. Confirmed cases have now fallen for the sixth consecutive day to 24,950 from 39,950 a week ago, shifting market sentiment back to risk on. This is a welcome development for … Read more

Market report: covid cases drop to give pound hope

GBP Last week was a reminder to traders just how quickly market sentiment can shift. Sterling struggled at the start of the week as concerns over a third wave took their toll. But it found new strength towards the end as cases began to drop. Those slight gains remained this morning as numbers stayed low. … Read more

Market report: pound drops after mixed job data

GBP The pound shed its recent gains against the euro and dollar this morning after a mixed bag of labour data for May and June. UK wages were above expectations with average earnings up 7.3% in May. The forecast was 7.1%. The unemployment rate meanwhile ticked up to 4.8% from 4.7% in May. Overall that’s a 0.2% drop since … Read more

Market report: pound boosted by ‘Freedom Day’ confirmation

GBP Sterling rallied against the euro and dollar on Monday as the Prime Minister confirmed the country was on track for ‘Freedom Day’ on July 19th.  The confirmation lockdown will all but end next week was welcomed by investors but didn’t result in any significant spikes as the good news was mostly priced in when the news was first announced. Investors … Read more

Market report: dollar rebounds to near multi-month highs

USD The dollar recouped its losses to trade close to multi-month highs yesterday as investor demand increased in anticipation of June’s US Federal Reserve minutes. It was June’s meeting which saw interest rate hike expectations brought forward and there is now talk of two hikes in 2023. These originally weren’t expected until 2024. Since then, the dollar has been well supported … Read more

Market report: dollar waits on FOMC minutes

USD June’s Federal Open Market Committee (FOMC) meeting minutes are released later today. Investors will be waiting eagerly for any clues on whether the Federal Reserve might cut its bond buying programme. The bank’s members discussed tapering in their 15th and 16th June policy meeting and since then most policy makers have been broadly bullish on the US recovery. The main reasons … Read more