Category: Daily blog

Key US inflation data today

The euro and sterling both advanced against the dollar yesterday, despite slightly firmer than expected producer price inflation data in the US, though their gains were modest enough. They are trading at around $1.0830 and just shy of $1.26 respectively this morning, ahead of the key US CPI inflation report later today, which in turn […]

Quiet enough start to the week

The euro firmed to just north of $1.08 against the dollar for a time yesterday before easing back again, and is trading at around $1.0780 this morning. Sterling also briefly gained some ground against the US currency but has since fallen back a bit to around $1.0560. All of this, meanwhile, leaves the euro-sterling cross […]

Focus this week on US inflation data

In what was a very quiet week for economic data, the Bank of England MPC meeting on Thursday created a flurry of excitement as the door was opened to a possible cut in UK interest rates next month. The impact on sterling was marginal enough though, with the pound closing out the week only slightly […]

BoE to cut rates soon?

The Bank of England MPC left interest rates on hold at 5.25% yesterday though two of the nine members voted for an immediate quarter-point reduction, while BoE Governor Andrew Bailey opened the door to a possible (but not certain) cut in June. Sterling fell initially against the dollar and the euro, but has since more […]

BoE meeting the focus today

Sterling is largely unchanged against the dollar and the euro this morning ahead of the Bank of England’s interest rate announcement later today, as it continues to trade just below $1.25 and at 86p respectively. The market doesn’t expect any change in UK interest rates today but will be watching closely to see if the […]

Pound on the back foot

Sterling has lost some more ground ahead of tomorrow’s Bank of England monetary policy meeting, slipping to $1.2480 against the dollar and to 86p against the euro, suggesting the market may be expecting a dovish tilt on interest rates. The single currency, meanwhile, is marginally lower against the dollar this morning trading at about $1.0745 […]

Bond yields head further south

The euro has held most of the modest gains it made against the dollar following Friday’s softer than expected employment report in the US and is trading at around $1.0770 this morning. Sterling has given up its gains against the US currency though to trade at about $1.2540, and is also slightly lower vis-a-vis the […]

Payrolls in the US today

The dollar is little changed against the euro and sterling from where it was this time yesterday morning, having attempted to retrace its post-Fed meeting dip in the intervening period, trading at around $1.0730 and $1.2540 ahead of the key US employment (payrolls) report later today. The euro-sterling cross remains tightly range-bound trading at about […]

Dollar lower post Fed

The Fed left interest rates unchanged yesterday and said monetary policy needs to remain restrictive for as long as necessary to return inflation to target, though Powell said the next move in rates is likely to be a cut. The dollar had given up some ground ahead of the meeting following softer than expected US […]

Dollar on the front foot

Markets have taken their cue from stronger than expected wage growth data in the US, pushing the dollar and bond yields higher and equities lower ahead of the Fed’s latest monetary policy announcement later this evening. The dollar has strengthened to around $1.0650 and $1.2470 vis-à-vis the euro and sterling respectively, leaving EURGBP little changed […]