Category: Daily blog

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 […]

Inflation data in the US today

It was relatively uneventful in FX markets yesterday with the main currency pairs ending little changed from Wednesday’s closing levels. It may be that they are treading water ahead of today’s CPI data in the US, though given the (largely) non-response to the much stronger than expected US jobs report earlier in the week, it […]

Dollar little changed post US jobs data

Yesterday’s US jobs report was a good deal stronger than expected – the economy added a larger than forecast 130k jobs in January and the unemployment rate nudged down for a second month running – prompting a paring back of Fed rate cut expectations, with the market more than pricing out what it had priced […]

US jobs report the focus for today

While yesterday’s US economic data, including retail sales, were softer than forecast, prompting a firming of expectations for further Fed rate cuts, the dollar had something of a mixed performance. It shed another 1% or so against the yen, which continued to build on its post-election gains, but treaded water for the most part against […]

Dollar still under pressure

The dollar lost more ground yesterday amid a continuing rally in equity markets. The euro and yen both rose by almost 1% against the US currency, while sterling strengthened by just over half a percent, most of its gains coming after under pressure UK Prime Minister Keir Starmer received the backing of his cabinet colleagues. […]

EURUSD on the front foot

Equity markets recovered strongly on Friday having been under the cosh for much of last week, while Asian stocks posted solid gains overnight led by the Nikkei in Japan. European equities have opened in positive territory this morning and the US looks set to follow suit later today.  The dollar is under some pressure in […]