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Last week the US Central Bank provided the main source of influence over markets. Specifically, it was the more positive tone from its June meeting with two interest rate hikes expected by 2023. In regards to specific rates, the EUR/USD fell from the $1.21 threshold to ending the week below…
GBP Sterling benefited from speculation that the Bank of England could next week deliver a slightly more hawkish (raising interest rates) monetary policy stance. The Bank’s chief economist Andy Haldane stated that the economy may be near pre-covid output levels but there was little market impact given his consistently hawkish…
USD The Federal reserve was more hawkish than anticipated and the meeting most likely marked the first step of the Fed taking the foot off the gas. Economists at Danske Bank think the message from FOMC and the likely path for US monetary policy support their call for a lower…
GBP The Pound appeared to flicker into life following positive labour-market data, but quickly reversed the gains. Optimism that stronger wages growth indicated a tight labour market and potential for increased consumer spending was offset by the high degree of uncertainty with so many workers still on furlough. Also, there…
GBP Sterling ebbed lower yesterday morning in disappointment that the English lockdown restriction easing would be delayed for four weeks. Expectations that the UK economic recovery would continue prevented the worst of any potential fallout. The Pound found support below 1.4100 to the Dollar and crept back above the level…
GBP The Pound failed to gain much support from the mixed UK data releases last Friday. GDP printed close to forecasts as the rebound in services was offset by a weakness in the industrial sector. The NIESR GDP estimate increased by 1.5% for May and a 0.9% increase was forecasted…
GBP The Pound traded lower against the Dollar yesterday morning and the dip below 1.4100 encouraged further selling. Reservations surrounding the Delta covid variant’s spread within the UK led to doubts that restrictions in England would be lifted as well as unease over trade friction with the EU, all combined…
GBP Bank of England Chief Economist Haldane highlighted again yesterday that the UK economic recovery was very strong but he did also express concerns over potentially higher inflation. Sterling strengthened after the comments but was not able to hold on to gains throughout the day. The latest talks over the…
GBP Volatility remained low yesterday morning and Sterling drifted. Andy Haldane, the Bank of England’s Chief Economist stated that the housing market was not just overheated but on fire. He also expressed concern over uncertainty in the labour market considering the 3 million people still on furlough. The rapid spread…
GBP The on-going strength of housing data maintained speculation that the Bank of England would have to shift to a less accommodative policy within the next few months which helped underpin Sterling, especially with expectations that the Federal Reserve and ECB would maintain very loose policies. The UK currency was…