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 […]


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 […]


Market report: inflation data boosts pound vs euro

GBP The pound reached its highest level against the euro since early April yesterday, following strong UK inflation data earlier in the week. This coincided with a EUR/USD sell off fueled by a hawkish comments at the US Federal Reserve’s rate conference. The Fed suggested there could be two rates hikes as early as 2023. The first rise wasn’t expected until 2024. This […]


Market report: inflation data eases pound’s woes

GBP The pound rose against the dollar this morning after inflation data beat expectations. UK inflation jumped to 2.1% in May, far better than the expected 1.8% and a healthy growth from April’s 1.5%. GBP/USD had been at a one month low yesterday. However, there’s a feeling among economists this spike is temporary, similar to […]


Market report: pound holds firm against hawkish comments

The pound held firm against the euro and dollar on Monday after hawkish comments by the Bank of England’s (BoE) Gertjan Vlieghe.

The Monetary Policy Committee (MPC) member believes a rate hike could be needed in 2022. This is especially notable as Vlieghe is normally more dovish than other members. That said, markets are fully pricing in a move to 0.25% by November 2022 but a further hawkish repricing may see that shift towards Q3 2022. 


Market report: dollar worst major currency of the quarter

USD The dollar is now this quarter’s worst performing major currency. This is in stark contrast to the euro, the strongest performer, which is up around 4% against the dollar. Several factors are weighing on the dollar. Investors still believe the US Federal Reserve’s insistence it will not taper its bond-buying operations anytime soon, even if inflation rises above […]


Market report: dollar drops back to multi-month lows

USD The dollar dropped back to near multi-month lows yesterday. This followed a brief bounce on Wednesday caused by the release of US Federal Reserve meeting minutes which suggested tapering government bond purchases if the pandemic recovery continued.  Now it seems the market has judged the Fed will take its time to taper, needing to see sustained positive data […]


Market report: pound falls despite upbeat inflation data

GBP Sterling fell against the euro and dollar on Wednesday despite UK inflation data beating expectations. According to data released by the Office for National Statistics (ONS), Consumer Price Index (CPI) inflation year on year surpassed expectations of 1.4% to read 1.5%. While the month on month figure met expectations to read 0.6%. Both readings […]


Market report: pound holds steady after inflation data

GBP The pound remained relatively unmoved this morning after the release of key inflation data was in line with Bank of England (BoE) expectations. The recent market consensus was that inflation data would be more influential than it had previously been. But as there were no big surprises, no major shift for sterling occurred.  UK CPI rose 0.6% month-on-month in […]


Market report: US could be forced into rate hike

USD Highly anticipated US inflation data was released yesterday. This was of great interest to investors who had grown increasingly nervous about growing inflationary pressures at home and abroad.  It wasn’t good news. Data showed the inflation rate jumped to a 13-year high. And it was a similar story for core inflation, which rose by 0.9%, the highest […]


Dollar remains on the front foot

USD The dollar remained strong against its peers yesterday as data showed US factory activity picked up in early March amid an increase in new orders. However, US manufacturing PMI only increased to 59 in the first half of this month from a final reading of 58.6 in February, when activity took a step back […]


Dollar falls on soft inflation reading

USD The dollar fell on Wednesday as February’s inflation data failed to reach expectations. U.S. inflation rose at a month-on-month pace of 0.4%, in line with market expectations, which lifted the annual rate of inflation from 1.4% to 1.7% and left it sitting just shy of the 2% target set by the Federal reserve. However […]


Dollar struggles after dovish tone from FED chair Jerome Powell

USD On Wednesday the dollar continued to struggle in early trading after dovish comments from the fed chair Jerome Powell raising fears of rising inflation. The comments helped to push the USD to multi year lows against the sterling and commodity linked currencies. Powell confirmed that interest rates will remain low whilst the Fed continues […]


Sterling’s run of strength continues

GBP Sterling’s run of strength continued as inflation data beat expectations yesterday further pushing the already surging currency supported by very positive numbers regarding the vaccine rollout. Inflation figures being higher than expected also again reduces the likelihood of negative interest rates. Sterling is currently on a run of 6 straight week of gains against […]


Strong Inflation data fuels sterling rally

GBP The pound performed well across the board yesterday after the release of better than expected inflation data for December. Cable broke two year highs before retreating and GBP/EUR similarly broke eight month highs. Biden taking office, and the inevitable stimulus package caused sterling to strengthen as investors looked for greater returns. This paired with […]


Sterling strong as inflation numbers beat expectations

GBP The pound has started the day with a spring in its step as UK Inflation data beat expectations for December. The figure was expected to be an improvement from a previous 0.3% to 0.5% but the realized figure was an even more improved 0.6%. Britain’s inflation rate picked up during the month of December […]


Bank of England Policymakers Shift Mood Towards Rate Cut

Two Bank of England officials unexpectedly voted to lower interest rates on Thursday to ward off an economic slowdown, and others including Governor Mark Carney said they would consider a cut if global and Brexit headwinds do not ease. Carney said the BoE’s central scenario was that a slowdown in global growth would stabilize and that Prime Minister Boris Johnson’s Brexit deal — which parliament has yet to approve — pointed the way to a reduction in Brexit uncertainty.

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