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Sterling gained support from UK employment data, growth in wages led to speculation that the Bank of England would maintain a hawkish policy stance (high rates). Good risk conditions helped the FTSE 100 index test record highs. It was a bumpy ride after the US inflation data and Sterling peaked…
EUR / USD ECB vice President de Guindos stated that rate increases beyond March will depend on the data. Fellow council member Centeno commented that smaller rate hikes by the central bank would require medium-term inflation nearing 2.0%, although the rhetoric had little overall impact. The Euro resisted further selling…
Sterling failed to gain much from Friday’s GDP data; avoidance of a technical recession offsetting fears of underlying stagnation in the economy and weakness in the industrial sector. There were particular concerns surrounding trade with the EU, reinforcing pressure for the government to secure improved relations. Global developments dictated direction…
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 Dented by German Recession Concerns The Euro stumbled through the first half of this week, with the single currency being undermined by…
Firm risk appetite helped steady the Pound at yesterday’s open. Bank of England Governor Andrew Bailey stated that headline inflation is likely to decline sharply this year, but the bank needed to see more evidence of inflation pressure easing. Chief economist Huw Pill stated there were some signs of loosening…
Cable breaks 1.21 resistance ahead of Bailey’s testimony. GBP/USD is holding moderate gains in the early morning open. Market sentiment is buoyed, allowing flows away from the USD safe haven, with renewed UK optimism ahead of today’s testimony to the Treasury Select Committee by Bank of England Chairman –…
Sterling struggled at yesterday’s open, dipping below 1.2000 against the dollar as the markets were a little more cautious that a “hawkish” message from the Federal Reserve could lead to further US and global economic damage. The Bank of England commented on a potential digital currency, perhaps 10 years down…
GBP managed to gain traction and climb above 1.2050 early Monday, before investor caution ahead of today’s Fed Chair Powell took precedence. Seeing GBP struggle to make further headway on Tuesday morning. Monday saw UK PMI construction index edge below the consensus forecasts of 49.6 to 48.2 for January. This…
Last week’s data heavy week saw all 3 of the major Central Banks increase their interest rates in line with expectations. The Federal Reserve kicked off the week with a 0.25 basis point rise, which led to a post-release positive move for GBP as the cross moved towards 1.24. Unfortunately…
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 Dented by ECB Forward Guidance The Euro wavered in the first half of this week. While a surprisingly resilient GDP release…