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The Pound rose after the higher than expected UK inflation data as it triggered speculation that the Bank of England would increase interest rates by 25 basis points to 4.25%. The CBI industrial orders index dipped below expectations with output and orders slowing in the three months to March while…
UK government borrowing data had some impact in undermining Sterling in early Europe. There was also further uncertainty surrounding tomorrow’s Bank of England policy decision with markets only pricing in around a 50% chance that there will be a further rate hike, especially given two committee members previously voting against…
An empty UK economic calendar meant risk conditions tended to dominate. Sterling held its own when equity markets came under sustained pressure early on, and when equities posted gains, the Pound kicked on despite doubts the Bank of England would increase interest rates this week. Sterling moved above 1.2200 against…
Cable (GBP/USD) is consolidating below 1.2200 in the morning session. The global banking crisis is leading to a cautious risk atmosphere in the market, ahead of the Fed and the BoE policy announcements later this week. Over in Switzerland, we have had an announcement this morning, with UBS taking…
EUR / USD The main focus today is in Europe. After the open, Credit Suisse announced that the Saudi National Bank would not be increasing its stake in the troubled bank. The outlook is still uncertain. There was a sharp re-pricing of ECB interest rate expectations with markets considering that…
EUR/USD: Back towards 1.0700, as the decision to increase US interest rates by 25bps rather than 50bps is looking clearer. GBP/USD: Steady around 1.2150, market participants will be looking at the UK budget report. US and Eurozone yields recovery provided support for the pound after a slowdown in wage growth….
The markets scrambled to figure out how monetary policy of major central banks will be affected by the collapse of Silicon Valley Bank (SVB) given the now exposed vulnerabilities in the financial sector. From a UK perspective, HSBC has bought the UK arm of SVB for £1. No word yet…
GBP is back above 1.21 vs USD after dipping to lows of 1.18 last week. Expectations of an aggressive rate hike from the Fed Reserve meant the dollar rally moved in line with US Treasury bond yields peaking at 10-year highs. Markets began to reprice a peak rate of 6% this year,…
Find out how the major currencies have been performing and what movement we could see in the days ahead with our weekly exchange rate update. EUR – Euro Bolstered by ECB Rate Hike Expectations Hawkish comments from European Central Bank (ECB) policymakers helped the Euro to get off to…
SA Non Farm Payrolls and Unemployment (Feb) released at 13:30 GBP rallies at the end of the week as UK real GDP grows above forecasts Germany YoY Feb Inflation maintains EUR support USD Despite a positive week for the Dollar trading at an average of over 1% growth against Euro…