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UK services sector PMI rose to 55.2 in November, up from 54.5, the strongest reading for 11 months. Sterling gained from rises in oil prices as risk appetite improved, testing two-month highs of 1.2750 against the Dollar, whilst falling to 1.1800 versus the Euro. Bank of England Governor Carney reiterated…
The crushing defeat for Renzi in yesterday’s Italian constitutional reform referendum has triggered further financial turbulence for Europe. The Euro fell as far as 1.0507 against the Dollar and 1.2000 versus the Pound, hitting 20-month lows as Prime Minister Matteo Renzi announced his intention to resign. The Italian President has…
British manufacturing growth unexpectedly slowed last month as factories grappled with soaring costs caused by Sterling’s slump after June’s Brexit vote. OPEC’s cuts and the consequent jump in oil prices will exacerbate this. However, the Pound made gains across the board after UK Brexit secretary David Davis said that Britain…
UK lending data showed an overall increase of GBP4.9bn for October from the previous GBP4.7bn. Consumer credit also highlighted an increase in the overall pace of borrowing, now at 11-year highs. Sterling managed to break the 1.2500 level against the Dollar again before edging lower as month-end selling pressure started…
The Pound was unable to retain momentum after breaking through 1.2530 against the Dollar. The UK currency fell by a cent but held above 1.2400. The Euro broke below 1.1700 against the Pound as Sterling suffered some month-end selling. Bank of England (BoE) Monetary Policy Committee member Vlieghe said that…
Sterling gained support yesterday as expectations of better (short-term) economic performance offset the caution surrounding the longer-term outlook. BBA mortgage approvals data printed just above consensus with an increase to 40,900 for October from an upwardly-revised 38,700 the previous month. This is the strongest figure for four months, continuing to…
Chancellor Philip Hammond delivered a spending boost targeted at improving the UK’s chronic productivity deficit in his inaugural Autumn Statement yesterday. Overall the markets responded positively to business friendly incentives; investment in roads and rail, internet infrastructure, research and development and housing. Sterling rallied against the Euro, peaking at 1.1812,…
The Pound slipped after public sector borrowing figures were published yesterday. In mid-morning trade Sterling was down 0.39% against the Dollar at 1.2384 and down 0.42% against the Euro at 1.1661. Despite borrowing figures for October printing lower than expected, it now looks increasingly unlikely that the government will meet…
Theresa May stated yesterday that the government is trying to avoid a sudden ‘cliff edge’ change in rules once the UK leaves the EU, and would aim for a transitional deal in the interim. The comments curbed expectations that there would be a ‘hard’ Brexit with optimism surrounding transitional arrangements….
Sterling stumbled against the Euro last Friday, falling 1.1% from a mid-morning peak of 1.1724 to 1.1593 by 1pm, before recovering to 1.1646. GBPUSD showed much the same story, falling from 1.2430 to 1.2304 by the end of the day. Theresa May is set to unveil an extra £2Bn a…