Author: Michael Crowley

Dollar rebounds

Yesterday’s jobs report in the US was, on balance, slightly softer than forecast but didn’t alter market expectations for near-term Fed monetary policy, with another rate cut still not fully priced in until well into next year. The dollar fell to its lowest levels of the day immediately following the release of the data but […]

Jobs report in the US today

The main currency pairs aren’t doing an awful lot ahead of today’s key jobs report in the US. The euro did trade up to a post-Fed meeting high of about $1.1770 against the dollar yesterday and is hovering around there this morning. Sterling is trading just below $1.34 against the US currency and at about […]

ECB and BoE meetings this week

The dollar and sterling both lost some ground to the euro last week, largely related to the differing monetary policy stances of the main central banks. While the Fed and Bank of England (BoE) are in easing mode with the BoE likely to follow last week’s Fed interest rate cut with a 25bps reduction of […]

Dollar remains under pressure

The dollar lost further ground yesterday following the Fed’s rate cut on Wednesday, though it did manage to end off its lows of the day. The euro has been one of the main beneficiaries from the US currency’s post-Fed weakness, gaining around a cent to trade just shy of $1.1750. Weaker than expected UK GDP […]

Dollar lower after Fed cuts rates

The Fed cut its policy rate by 25bps to 3.5%-3.75%, as expected, noting that “downside risks to employment appear to have risen in recent months”. There were three dissents, with one member voting for a larger 50bps cut and two voting to keep rates unchanged. Fed Chair Powell said that, with rates having been cut […]

Markets tread water ahead of Fed

Markets generally treaded water yesterday ahead of the Fed’s interest rate announcement later today. In FX, the dollar was marginally firmer, gaining ground against most of the main currencies, though it has given back some of this overnight. EURUSD is hovering around $1.1650 this morning, while GBPUSD is trading at $1.3325 (having dipped below $1.33 […]

Euro area bond yields pop higher

Notwithstanding a jump in Euro area government bond yields following relatively ‘hawkish’ comments on interest rates by an ECB member, the single currency is largely unchanged from yesterday morning’s levels against the dollar at $1.1650 (though it bounced around quite a bit during the course of the day’s session). Sterling is also more or less unchanged […]

Fed set to cut rates again

The dollar lost ground for a second week running, shedding around half a percent against a basket of other currencies. Friday’s as-expected inflation data in the US copper-fastened market expectations that the Fed will lower interest rates at this week’s meeting (announcement on Wednesday). A 25bps cut  – to 3.5%-3.75%  – would bring the cumulative […]

US inflation data today

The main currency pairs were confined to relatively narrow ranges yesterday. The euro traded between $1.1640 and $1.1680 against the dollar and is hovering around $1.1660 this morning. Sterling moved between $1.3325 and $1.3385 versus the US currency and is currently trading at about $1.3350. Having edged up to a high of £0.8720 during yesterday’s […]

Sterling on the front foot

Sterling was a notable outperformer yesterday, advancing against both the dollar and the euro, helped by better than expected UK economic data and some softer than forecast US data. The pound has strengthened by more than a cent against the dollar to trade at around $1.3350, its best level since the end of October, and […]