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Heads or tails for Sterling?

30th January 2020 Market Update Get a snapshot of the day’s most important market events and currency movements sent straight to your inbox every morning. Sign up to our Daily Market Report. ?? GBP – Sterling traded very flat yesterday which kept the Pound pinned in the region of one week lows. A lack of relevant data for the UK and a quiet economic calendar elsewhere meant that analysts were more focused on the interest rate decision today. The Government yesterday vowed to introduce a bill to end the automatic rights for EU vessels to fish UK waters. This is […]

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Safe haven flows with coronavirus outbreak in focus

24th January 2020 Market Update Get a snapshot of the day’s most important market events and currency movements sent straight to your inbox every morning. Sign up to our Daily Market Report. ?? GBP – Sterling moves were muted yesterday in the absence of any data as the market looks to the Bank of England on Thursday. Current expectations are for the Bank of England to keep rates at 0.75%, although market odds place a rate cut at 53%. One of the other key factors to look out for on Thursday will be how members of the BoE vote with […]

bank of england

Sterling strong as interest rates expected to remain the same

24th January 2020 Market Update Get a snapshot of the day’s most important market events and currency movements sent straight to your inbox every morning. Sign up to our Daily Market Report. ?? GBP – Sterling was the 2nd best-performing currency last week, as there are reduced chances that interest rates will be cut this Thursday by the Bank of England. Sterling was further supported on Friday, as flash manufacturing and flash services PMIs were both released above market expectations. There is no data of note being released from the UK today. All eyes will be on the UK this […]

europe union building

Euro weakens as Lagarde launches review

24th January 2020 Market Update Get a snapshot of the day’s most important market events and currency movements sent straight to your inbox every morning. Sign up to our Daily Market Report. ?? GBP – There was no data of significance from the UK yesterday. Sajid Javid reassured business leaders yesterday by stating that the UK would not diverge from Europe “for the sake of it”. This allowed sterling to maintain its recent momentum, particularly against the euro. Today flash manufacturing and services PMI are being released at 9.30am. They are both expected to rise above the previous readings, and […]

bank of england

Probability of a Bank of England interest rate cut decreases

23nd January 2020 Market Update Get a snapshot of the day’s most important market events and currency movements sent straight to your inbox every morning. Sign up to our Daily Market Report. ?? GBP – Sterling advanced against all of its major currency pairs yesterday achieving its highest level in over a month against EUR and JPY. Cable also rallied to a 2 week high. The pound was boosted by the best CBI Manufacturing order book balance since April 2014. The January figure was released at -22 above December’s figure of -28 and the forecasted figure of -23. GBP advanced […]

UK employment data gives relief to struggling pound

22nd January 2020 Market Update Get a snapshot of the day’s most important market events and currency movements sent straight to your inbox every morning. Sign up to our Daily Market Report. ?? GBP – Talks from the Bank of England hinting at cutting interest rates have weighed heavily on the pound this month, however, average earnings grew by 3.3% last month which gave a boost of around 0.5% for sterling sellers. The odds of an interest rate cut also fell slightly from 67% to 65%, giving traders more confidence in the pound. Manufacturing figures on Friday will need to […]

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Brexit headwinds reappear for Sterling

17th January 2020 Market Update Get a snapshot of the day’s most important market events and currency movements sent straight to your inbox every morning. Sign up to our Daily Market Report. ?? GBP – Sterling opened the week by reacting to comments made by Chancellor Sajid Javid in the Financial Times on Saturday that Britain would not commit to EU rules in post Brexit trade talks. Markets fear that this will increase trade frictions between the EU and UK in the future and suggests that the trade negotiations will be difficult. Sterling regained ground from mid morning which reflects the […]

bank of england

Sterling continues rebound despite rate cut talks

17th January 2020 Market Update Get a snapshot of the day’s most important market events and currency movements sent straight to your inbox every morning. Sign up to our Daily Market Report. ?? GBP – Sterling continued its rebound yesterday as markets seem to have taken pressure off the currency despite odds of an interest rate cut in January rising to 62%. One touted reason for the relief on the pound seems to be that investors perhaps overreacted to the recent comments made by BoE members that a rate cut could be needed in the UK. Attentions now will most likely […]

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US and China agree phase one deal

16th January 2020 Market Update Get a snapshot of the day’s most important market events and currency movements sent straight to your inbox every morning. Sign up to our Daily Market Report. ?? GBP – The latest release from the Bank of England has priced a January 30th rate cut in as 64%, mainly because UK inflation for December came in at 1.3% which is 0.7% below the BOE’s target. The pound now sits 3-4% lower against both USD and EUR post-election. There are no notable data releases expected from the UK today. ?? EUR – The euro remains mostly stagnant […]

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UK Inflation in Focus

15th January 2020 Market Update Get a snapshot of the day’s most important market events and currency movements sent straight to your inbox every morning. Sign up to our Daily Market Report. ?? GBP – Sterling fell further yesterday morning dropping to a seven-week low against the euro and lowest against the dollar this year. The fall came after the Bank of England released indicators of a potential rate cut this month due to the worrying state of the UK economy. Four BOE policymakers have released statements that if economic data doesn’t improve significantly, they would have to take action. Money […]

Increased probability of a Bank of England rate cut

14th January 2020 Market Update Get a snapshot of the day’s most important market events and currency movements sent straight to your inbox every morning. Sign up to our Daily Market Report. ?? GBP – Yesterday morning sterling declined against the majority of its major currency pairs following the increased probability of a Bank of England interest rate cut later this year. Money markets see an 85% probability of an interest rate cut, from 0.75% to 0.5%, following policymaker, Gertjan Vlieghe, hinting he will vote for a rate cut for the first time since 2016. He is the third Bank of […]

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UK policy makers hint rate cut, reversing sterling gains

13th January 2020 Market Update Get a snapshot of the day’s most important market events and currency movements sent straight to your inbox every morning. Sign up to our Daily Market Report. ?? GBP – The pound was fairly range bound last week as markets began the digest tensions between the US and Iran, as well as ongoing Brexit advancements. All GBP gains from last week have been reversed this morning, leaving the pound at its weakest levels in December. Comments from Bank of England policy maker Gertjan Vlieghe indicated that she would vote for a rate cut but it is […]