15/03/2022

UK unemployment rate fell to 3.9%

GBP Sterling still remains vulnerable to risk appetite as the war in Ukraine continues. The pound continued to fall against both the US dollar and euro yesterday as a result of news that Russia has requested military assistance from China. Yesterday, new figures showed UK wage growth failed to keep up with the rising cost … Read more

14/03/2022

Interest rate hike expected this week

GBP The Bank of England (BoE) is expected to deliver its third rate hike this week. However while last month showed a surprise 5-4 vote split for a possible 50 basis points increase, the BoE will likely continue with another 25 basis points increase. Therefore it is probable Sterling will hold onto its gains made … Read more

11/03/2022

Ukraine-Russia talks end in a stalemate

EUR The pound came under pressure yesterday against the euro after a more hawkish-than-expected European Central Bank policy meeting. The ECB left interest rates on hold, however they announced that they will be winding up their asset purchase programme at a faster pace than previously expected. This is in view of rising inflation which continues … Read more

10/03/2022

All eyes on today’s Ukraine-Russia talks in Turkey

GBP On a day void of any significant market moving data, Sterling fell against the euro and made a minimal recovery against the US dollar on Wednesday. Investors are eyeing peace talks scheduled to take place today in Turkey between Russia and Ukraine. With market sentiment currently the driving force for currency markets, news that … Read more

09/03/2022

Poor performance from UK Retail Sales

GBP Sterling has been vulnerable against most major currencies over the last few days as the Russia-Ukraine war raised the potentiality of a recession in Europe. GBP/USD hit a fifty-two week low as markets are dumping the European domain currencies on the expectation of a stagflation situation going forward. Poor performance from the Retail Sales … Read more

08/03/2022

Investors rushing to safe-haven US dollar

EUR The euro recovered slightly against both the pound and dollar on Monday as headlines stated that Russia would immediately cease its military campaign if Ukraine agreed to a list of demands. Kremlin spokesperson Dimitry Peskov said Russia would withdraw forces if Ukraine ceases military action, changes its constitution to enshrine neutrality, acknowledges Crimea as Russian territory, … Read more

07/03/2022

European markets eager for diplomatic solution with Russia

EUR The safe passage of civilians from Ukraine’s eastern port city of Mariupol was “halted” on Sunday for a second consecutive day, after the agreed ceasefire was violated within hours of its planned implementation. Ukrainian President Volodymyr Zelenskyy warns that Russian forces could be planning an attack on the key port city of Odessa. The … Read more

04/03/2022

Russia takes control of Europe’s largest nuclear plant

Last night, headlines broke confirming Russian soldiers had attacked Europe’s largest nuclear power plant. This morning, further reports suggest the facility was under Russian control. Markets remain in suspense as we enter into the weekend. EUR As a result of yesterday’s attacks the euro came under renewed pressure with GBP/EUR trading at post Brexit highs … Read more

03/03/2022

Risk sentiment remains a key driver for currency markets

Risk continues to be the main driver for currency markets. Confidence in the global outlook has weakened significantly, especially with energy prices increasing considerably. There are widespread fears over a disruption to trade and Europe is inevitably seen as most vulnerable to this. Further moves from NATO and potential Chinese peace-making attempts will be an … Read more

02/03/2022

Sterling is beginning to underperform

GBP Sterling is the second worst performing major currency this past week and month as it proves to be a major loser in the financial fallout caused by Russia’s invasion of Ukraine, and there appears to be little upside in the near term. The outbreak of war and sanctions placed on Russia have led investors … Read more

01/03/2022

The rouble crashed to an all-time low against USD

GBP Sterling bounced slightly against the dollar on Friday as global markets rallied following international sanctions in response to Russia’s attempted conquest of Ukraine. Since then sanctions have been ramped up by the majority of nations in the eurozone including countries such as Switzerland who normally see themselves as neutral. GBP/USD rate started the week … Read more

25/02/2022

US Dollar finds strength as Russia’s invasion escalates

Markets remain in suspense as the Russian invasion of Ukraine continued throughout yesterday and into the morning. In what NATO describes as a ‘cold blooded, pre-planned attack’ the rest of the world sits in watch as Russian forces make their way through Ukraine. From reports of missiles and explosions to downed Russian aircraft, yesterday marked … Read more

23/02/2022

Euro and global stock markets fell sharply yesterday

EUR The euro recovered on Tuesday, but volatile market conditions look set to remain as Russia moves into Ukraine. The euro and global stock markets fell sharply following overnight news that Russia would recognise two contested territories in eastern Ukraine as sovereign states and would deploy its military in due course. The move was condemned … Read more

22/02/2022

UK PMI data showed business activity growth

GBP Sterling strengthened yesterday as UK PMI data showed business activity grew at its strongest pace since June last year. Business activity rebounded at a considerable pace in February from the impact of the Omicron variant at the end of 2021, with increased consumer spending in travel, hospitality, and leisure boosting the UK services sector. … Read more

21/02/2022

Currency markets await Russia’s decision

GBP On Friday, Sterling remained stable against the dollar with no major movement for the pair as investors assess the latest developments surrounding the Russia-Ukraine conflict. The data published by the Office for National Statistics showed on Friday that Retail Sales in January rose by 1.9% on a monthly basis. This reading surpassed the market … Read more

17/02/2022

Scepticism at Russia’s withdrawal from Ukraine border

EUR supported by ease of geopolitical tensions while GBP and USD are facing domestic challenges. GBP UK inflation hit a new thirty year high yesterday, as consumers continued to feel price pressures in January. CPI rose 5.5% (YOY) in January, the highest reading since March 1992. This reading resulted in four consecutive months of rising … Read more

16/02/2022

News of Russian troops withdrawal from Ukraine border boosts currencies

USD Reports that some Russian troops had started to withdraw from the Ukrainian border had boosted hopes that the Russian-Ukraine conflict is starting to de-escalate. This led to a lift of some of the risk appetite in the market from the previous session. As a result, oil prices also eased from the earlier highs seen … Read more

15/02/2022

Markets closely monitoring tensions between Russia and Ukraine

EUR The euro fell across the board on Monday as tensions flare in Eastern Europe between Russia and Ukraine. Investors are taking steps to position for a potential armed conflict in Ukraine which has seen the single currency weaken as a result. The European Union depends on Russia for 40% of its gas imports and … Read more

14/02/2022

UK sees highest GDP growth rate since World War II

GBP On Friday it was announced that the UK economy had advanced 7.5% in 2021, the highest GDP growth rate since World War II. Figures for December were expected to decline due to the Omicron variant and government guidance during the holiday period. However this did little to affect the overall growth for the year. … Read more

10/02/2022

Sterling is lacking direction

GBP A lack of risk appetite and no real domestic developments have forced the pound to hold within a tight range this week so far. Prime Minister Boris Johnson has seemingly managed to stabilise his position for now, pending the police inquiry into the Downing Street parties. With multiple Conservative party donors and a number … Read more