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

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

Market report: US economy seems to bounce back

USD Yesterday’s US GDP numbers surprisingly showed the economy grew faster than initially thought in the second quarter of this year. The injection of huge fiscal stimulus and the Covid vaccination roll out saw GDP back above its pre-pandemic peak. It increased at 6.6% on a annualised rate which was revised up from 6.5% reported in July. Corporate profits also increased. This will … 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’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 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: 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 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: 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: 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

Market report: US job numbers beat expectations

USD The eagerly anticipated non-farm payrolls were released on Friday. This is the total number of paid workers in the US minus farm, government, private household and non-profit organisation employees. In June, American job creation came in well over expectation, adding 850,000 jobs. The prediction was just 700,000. The hospitality sector was the largest beneficiary. … Read more