Sterling is considered a risk-sensitive currency

GBP Sterling fell on Tuesday as market sentiment shifted to risk-off amid a sell-off in global stock markets as well as investors acting cautiously ahead of key interest rate decisions for both the UK and US. Sterling is considered a risk-sensitive currency and usually trades in tandem with global stock markets. Global stock markets were … Read more

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

Sterling takes hit but still gains on the Euro

GBP Sterling was down for much of last week and was one of the worst performing currencies, but still managed to gain on Friday against the euro. Last week’s comments from the European Central Bank (ECB) confirming inflationary rises as transitory, and that they are in no rush to taper their current stimulus, means the … Read more

GBP hits highs after recent data

GBP Sterling rallied during early trade to multi-week highs against both the euro and dollar on Tuesday following a buoyant jobs report, but relinquished the bulk of early gains late in the afternoon. According to the latest data released by the Office for National Statistics (ONS), UK unemployment showed a modest improvement on a month on … Read more

GBP well supported along with positive data

USD Today sees the release of key US inflation data, something the FED will be watching closely. We’ve seen the US inflation figure well above the 2% target for some time now and investors will look for today’s data to spur the FED into taking some action at next month’s meeting. US Core CPI (MoM) … Read more

UK inflation may be combated by tightening monetary policy

GBP Sterling ended the week close to one month highs on Friday as UK bond yields rose amid growing expectations that the Bank of England (BoE)  may soon tighten economic policy to combat rising inflation. The move follows hawkish comments from Governor Andrew Bailey who hinted that the BoE were considering tightening policy. Bailey told lawmakers in Parliament on … Read more

Market report: pound still in demand

GBP It might be a light week for the pound data wise, but that hasn’t stopped an increased demand for the currency. This comes amidst expectations of a bank holiday consumer binge. There’s been a recent slowdown in retail sales and business activity, but this could actually give way to stronger expansion. A recent survey for UK business activity showed … Read more

Market report: pound stays steady against majors

GBP Yesterday was another uneventful day for sterling as a lack of headline data saw it trend sideways against the euro and dollar. However, UK Covid cases are rising again, so sterling may make some mild moves once today’s case figures are released. But with hospitalisation staying low, any market movement will likely be short … Read more

Market report: pound finally fights back

GBP Sterling rebounded against the euro and dollar on Monday, benefitting from global stock markets rallying following a switch to ‘risk on’ sentiment. The shift saw sterling gain 0.6% against the euro and 1% against the dollar. This is welcome news for the pound which was declining last week, dropping to recent lows vs the euro and annual lows … Read more

Market report: pound’s decline continues

GBP The pound lost considerable ground against the euro and dollar throughout the week and continues to fall as the weekend approaches.  UK Consumer Price Index data came in at 2% earlier in the week, right on the Bank of England’s (BoE) target inflation rate. This is down from a previous 2.5%. This suggests the BoE’s longstanding view that this … Read more

Market report: dollar benefits from safe haven status

USD The dollar has gained against its competitors this week as risk off sentiment grows and investors look towards safe haven currencies. This follows the chaotic situation unfolding in Afghanistan and the threat posed by Covid’s delta variant.  Yesterday also saw the release of the minutes from the last Federal Reserve’s policy meeting. While no firm decisions were made, most … Read more

Market report: pound feels impact of global Covid concerns

GBP Sterling continued its decline against the euro and dollar on Tuesday as market sentiment remained risk-off. This follows global Covid concerns that seem to be dominating investor sentiment. The US has now surpassed 200,000 new daily infections and New Zealand re-imposed lockdown restrictions following their first case for six months. Yesterday’s employment data from … Read more

Market report: pound suffering set backs

GBP The pound remained on the back foot against the euro and dollar yesterday as Brexit headlines and a ‘risk off’ mood took their toll.  Brexit fears around immigration are swirling after Brexit negotiator Michel Barnier called for a five-year moratorium on all immigration into the EU — a move that would effectively ban British settlement and all others. … Read more

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: 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