Category: Daily blog

Sterling on the back foot

Sterling was on the back foot yesterday, shedding around half a percent against both the dollar and the euro (more than reversing Wednesday’s gains) amid a ‘risk off’ mood in markets and ahead of the result of the UK by-election in Gorton and Denton in Greater Manchester. Labour lost the latter convincingly, coming in a […]

Pound gives up some of yesterday’s gains

It remains fairly sedate in FX. Sterling did edge higher against the dollar and euro yesterday, getting up to around $1.3570 and below £0.8710 respectively at one stage, with the ‘risk -on’ mood in markets (evidenced by a further rise in equity markets) and some small paring back of expectations for a Bank of England […]

Fairly quiet in FX markets

It was fairly quiet in FX markets yesterday with most of  the main currency pairs trading in narrow ranges. Donald Trump’s State of the Union address overnight has had little impact, which perhaps should be taken as good news. The euro and sterling are marginally firmer against the dollar this morning, with the single currency […]

Dollar regains some ground

US and European equity markets were on the back foot yesterday amid the latest bout of tariff uncertainty and ongoing AI-related concerns, while government bonds rallied with yields ending lower on the day. In FX, the dollar regained some ground during the course of the session. EURUSD and GBPUSD are trading at around $1.1790 and […]

Dollar a touch softer at the off

The dollar is under a little pressure this morning amid the latest instalment of the Trump tariff turmoil. Shortly after the Supreme Court on Friday struck down his IEEPA-imposed (mostly reciprocal) tariffs, the US President slapped a temporary (150 day) 10% tariff on all countries using alternative legislation, raising it to 15% in less than […]

Dollar edges higher

It was fairly quiet in FX markets yesterday ahead of a heavy schedule of economic data today, which includes flash PMIs for February in the main economies and GDP (Q4 2025) and PCE inflation (December) in the US. The euro and sterling edged down further against the dollar relative to Wednesday’s closing levels and are […]

Dollar on the front foot

Some solid US economic data together with relatively hawkish Fed meeting minutes lifted the dollar yesterday. The euro and sterling ended at their lows of the day, and indeed of the week, against the US currency, at circa $1.1785 and $1.3495 respectively – they are only marginally firmer this morning – and both are now […]

Little change in euro

With the US having a public holiday on Monday, yesterday really was the kick off to the week and saw a bit more action in markets. The euro made up a little more ground on sterling. The UK currency was softer due to yesterday morning’s weak UK employment data seeing markets price in a bigger […]

Pound softer after labour market data

With the US out on a public holiday, it was very quiet across equity, bond and foreign exchange markets yesterday. In FX, the main currency pairs ended little changed from last Friday’s closing levels. Sterling is under a little pressure this morning though following softer than expected UK labour market data released a short while […]

Busy week of economic data ahead

Friday’s softer than expected US inflation data didn’t have much effect on the main currency pairs, though they did contribute to a firming of Fed rate cut expectations and an extension of last week’s decline in bond yields. The yen was the star performer in FX last week – gaining around 3% and 2.5% against […]