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USD The Dollar starts the week on solid ground after US Nonfarm payrolls rose 222,000 for June compared with expectations of 180,000. Government jobs provided the bulk of the increase and May’s figure was revised up to 152,000, an extra 14,000. Unemployment ticked up to 4.4% from 4.3% with a small…
GBPSterling inched up in a quiet day of trading yesterday against the Greenback. A run of weaker British economic data fails to deter investors from bets that the Bank of England will hike interest rates in the coming months. Surveys of purchasing managers pointing to a cooling economy have put…
GBP Sterling steadied close to a one-week low yesterday, as a survey of Britain’s services businesses added to a string of weak data that could deter the Bank of England from making the first rate hike in 10 years. A number of central bank policymakers, including Governor Mark Carney, have spoken…
GBP Sterling carried on its losing streak for the second consecutive day yesterday after Britain’s construction sector showed growth slowing in June, adding to signs that the economy might be struggling to gain momentum after a slow start to the year. The Pound, which at the start of the week was…
GBPUK Purchasing Managers’ Index (PMI) manufacturing declined to 54.3 in June, well below expectations of 56.4 and May’s figures were revised lower to 56.3. Orders’ growth fell to a five-month low and there was an easing of price pressures. The longer-term growth outlook suffered, with increased evidence of capacity constraints…
GBP UK GDP remained at 0.2% growth, as expected, for the first quarter of 2017, although real household incomes declined for the third quarter in a row. The savings ratio fell to the lowest level on record, raising concerns about the consumer spending outlook. The Pound gained as oil prices rose…
USD The Dollar remains under pressure as investors pull money from the Greenback, where enthusiasm for higher interest rates has been fading and re-distributed into currencies where the rate debate is heating up. The Dollar index is down almost 2% this week and is currently at its lowest since October. Yesterday’s…
USD Fed speakers added nothing of note from a currency perspective whilst global central bank officials were generally more hawkish in outlook. In this context, there was speculation that the Dollar’s global advantage in terms of growth and yield would fade. This would tend to undermine potential currency support. US economic…
GBP The Pound gave back some of the gains made earlier in the week yesterday following the unexpected shift by the Bank of England’s chief economist to potentially support a rate hike. While higher rates would give a reason to buy the UK currency, the political situation and Brexit unknowns are…
GBP A pared-down Queen’s speech revealed that little of the Conservative manifesto will form part of the Government’s goals over the next two years. With the focus squarely on Brexit bills & terrorism, there was little for investors to grumble about. The DUP did not feature. Andy Haldane, the Bank of…