21/10/2021

Sterling holds amid inflation data

GBP Yesterday saw the release of the latest UK inflation data. The Office for National Statistics showed consumer prices fell from 3.2% to 3.1% in the month of August. Despite this, the pound was still seen trading at one month highs against the dollar and around twenty month highs against the euro. While the reading … Read more

18/10/2021

Sterling gains on all major currencies

GBP Last week sterling had broken higher throughout the course of the trading week, clearing the 1.37 boundary. The market looks as if it is ready to continue trading upwards after reaching back to monthly highs, as mixed data coming out from the US economy undermine speculation for a shift in Federal Reserve policy. The … Read more

13/10/2021

Sterling finds some support against dollar

GBP Sterling found some support yesterday as the reactions to the UK unemployment data continued. We saw unemployment rates drop from 4.6% to 4.5%, meaning the figure is now at its lowest point in a year. Warnings also suggest caution should be applied to these figures as the numbers are still being affected by factors … Read more

08/10/2021

Sterling looking to gain traction

GBP Settling gas markets and improving equities enabled a backdrop that has a tendency to benefit the pound, but market sentiment will be challenged by a huge jobs report from the US later. Providing risk-on market conditions continue into Friday’s close, the pound will complete a rare weekly advance against the dollar and a second … Read more

07/10/2021

Sterling finds ground against Euro

USD The ADP employment data released yesterday showed private payrolls increased by 568,000 last month, marginally beating forecasts of 428,000. This will look to further cement the conditions Federal Reserve Chair Jerome Powell has stated will need to be met for the Fed to start tapering their asset purchase scheme in November. The ADP is … Read more

05/10/2021

Sterling gains back on losses

GBP Yesterday sterling regained some of the losses experienced last week as markets continue to digest a list of ongoing issues. Most notably, rising global inflation worries meant sterling, alongside other risk assets, was sold off heavily with investors preferring to hold safe-haven assets. To put it into perspective, by mid week the pound was … Read more

30/09/2021

Sterling loses ground against both majors

GBP Sterling rates fell against both majors to multi months lows trading towards the 1.34, and towards 1.15 for GBP/EUR mark. As the pound is a risk sensitive currency, investors have now started to put more assets into safe-havens adding even more pressure on sterling’s strength. The highly talked about energy crisis has now been … Read more

29/09/2021

Sterling falls to month lows

GBP Yesterday the pound fell to multi month lows against both the pound and euro, a storyline that may now be apparent for the foreseeable future. A combination of factors has caused investors to worry about the UK economy over the next few months. Most notably, fuel shortages at forecourts has caused a spike in … Read more

21/09/2021

Sterling under pressure

GBP The pound remains under pressure as the UK’s energy crisis and a global market sell-off continue. Sterling is proving to be very vulnerable to a surge in gas prices as not only does it threaten to cut off UK consumers’ budget but also hampers the industrial output. This is because the UK relies heavily … Read more

23/03/2021

GBP falls on EU threat to block vaccines

GBP Sterling fell against both the euro and dollar on Monday as investors sold the British currency following news the European Union could block AstraZeneca vaccine exports to the UK. This follows supply issues in Europe and concerns among EU officials that it won’t reach its vaccination target. European Commission President Ursula von der Leyen … Read more

15/03/2021

US dollar rises again off the back of rising treasury yields

USD The dollar rose on Friday following a fresh spike in Treasury yields as the prospect of economies emerging from year-long coronavirus lockdowns reignited inflation fears. The market over the last few weeks has become increasingly more wary of possible inflationary pressures that could come as a result of pent-up consumer demand and the expanding … Read more

10/03/2021

Sterling remains on the front foot

GBP Another positive day for sterling saw the pound maintain gains made earlier in the week. British Retail Consortium’s (BRC) Retail Sales data for February was released yesterday, beating forecasts by 1.57%. This was positive for sterling as it meant a return to growth after a disappointing reading the month previous. This paired with the … Read more

09/03/2021

Positive sentiment continues to prop up Sterling

GBP Investors have ramped up bets for further gains on Sterling, with the net long position of the pound increasing to the highest level since April 2018. This increase in the net long position is a reflection of the optimism that currently surrounds the UK thanks to the rapid roll-out of the vaccine program that … Read more

05/03/2021

Dollar strengthens on US economic recovery

USD The US dollar strengthened on Thursday after Jerome Powell indicated that inflation is likely to rise as the economy recovers in the coming months. Powell stated that interest rates are unlikely to rise unless the economy is running back to full capacity with full employment and more durable inflation. Powell believes that rise in … Read more

04/03/2021

Sterling remains stable after the Budget was announced

GBP Yesterday saw the announcement of Rishi Sunak’s highly anticipated Spring Budget. Almost one year on from his first budget, circumstances have most definitely changed. This year’s budget was largely split into two. The first part was a large extension of the support already in place. The focal point was an extension of the furlough … Read more

03/03/2021

Sterling remains supported ahead of Spring budget statement

GBP Sterling erased early losses against the dollar on Tuesday as the pound benefited from global investors purchasing UK assets amid fresh optimism that the UK economy is on track to show a post-Covid economic recovery. During early trade, sterling traded close to its lowest level for two and a half weeks as the increase … Read more

01/03/2021

Sterling Falls as Risk Off

GBP Sterling fell against a basket of currencies on Friday as market sentiment shifted to risk-off following an aggressive sell-off in global stock markets. Volatility in global stock markets has significantly influenced the value of sterling since the outset of the pandemic in March 2020 with sterling trading in close alignment with stock market swings. … Read more

26/02/2021

Sterling suffers its sharpest decline of the year

GBP The pound has been the best  performing currency of 2021 but it has suffered its sharpest decline of the year in response to a shift in risk status. As demonstrated by the pound’s performance in the last few months, it has adopted a ‘risk on’ status and is susceptible to risk reversals if the … Read more

22/02/2021

Sterling remains stable ahead of the UK’s lock-down exit plan

GBP Today see’s the eagerly anticipated announcement of the UK’s lockdown exit plan, with investors awaiting to see whether the details will be overly cautious or if the economy will reopen in large chunks. This follows on from last week, where the pound was yet again the best performing major, hitting three year highs against … Read more

19/02/2021

Sterling Reaches Uncharted Territory

GBP The pound raced ahead again to start Thursday against the € and $ and has attracted more market participants such as pension funds, insurance funds, real estate investment trusts, asset managers and other finance houses as cited by market analysts. The pound appears to still be benefiting from the so far successful vaccine rollout … Read more