Category: Daily blog

Euro remains on the front foot

The ECB cut the deposit rate by 25bps to 2.5% at yesterday’s meeting, as expected, and said it is now at a ‘meaningfully less restrictive’ level, pointing to the possibility of a slower pace of rate cuts ahead. The euro traded up to an intra-day high of just over $1.0850 following the meeting, which is […]

German bond yields surge

The euro has strengthened further as it continues to be buoyed by Germany’s promise to increase government borrowing and spending to boost its economy. It is trading at $1.08 against the dollar and not far shy of £0.84 against sterling this morning, ahead of the ECB’s latest interest rate announcement later today. The pound has […]

Euro on the front foot

The euro is on the front foot this morning after Germany’s new chancellor-elect announced plans for a EUR 500bn infrastructure fund (to be used over the next 10-years) and a relaxation of the country’s “debt brake” to allow for increased defence spending. The single currency has strengthened  to almost $1.07 against the dollar, its best […]

Forget the pancakes, it’s Tariff Tuesday.

The euro and sterling popped higher against the dollar yesterday as the prospect of increased defence spending in Europe to support Ukraine was viewed as potentially boosting economic growth, with equity markets also rallying and bond yields rising. In the US, weak manufacturing data weighed on the dollar and contributed to a decline in Treasury […]

Further fall in US bond yields

Benign inflation data in the US contributed to a further fall in bonds yields on Friday, while there was some respite for US equity markets in particular after a tough week overall. The dollar advanced again at the end of the week, albeit its gains were very modest, while it is a touch softer this […]

Dollar rises on Trump tariff talk

The dollar has risen across the board following the latest round of Trump tariff talk. Coming shortly after his promise to impose 25% tariffs on the EU, he said the currently paused 25% tariffs on Canada and Mexico will go ahead from next Tuesday and that there will be an extra 10% tariff on China […]

Euro, pound off highs versus dollar

The euro and sterling got up to highs of over $1.0520 and north of $1.27 against the dollar during yesterday’s session (a new 2025 to date high in the case of the pound), though they have since retreated following comments by Donald Trump that his administration would “soon” impose tariffs of 25% on the EU. […]

Dollar under pressure

Ongoing concern about the outlook for the US economy, amid declining consumer and business confidence, contributed to a further fall in bond yields, while stocks remained on the back foot and the dollar weakened. The euro rose to a high of about $1.0525 against the US currency during yesterday’s session but has retreated to $1.05 […]

Main currency pairs in tight ranges

The main currency pairs continue to trade in relatively narrow ranges. The euro briefly rose above $1.05 against the dollar at the open yesterday on relief at the outcome of the German election before falling to around $1.0450 late in the day after Donald Trump said tariffs on Canada and Mexico would go ahead, but […]

Euro a touch firmer

Friday’s flash PMIs for February suggest economic activity in the Euro area and UK remains subdued at the beginning of 2025 and is slowing in the US, while the latest consumer confidence survey in the US showed sentiment ebbing and inflation expectations rising reflecting fears of tariff-induced price increases. The response in markets saw bond […]