Category: Daily blog

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Pound lower after BoE rate decision

If the Fed’s interest rate decision on Wednesday was a ‘hawkish’ cut, sending the dollar higher,  yesterday’s Bank of England MPC interest rate decision was a ‘dovish’ hold, sending sterling lower against the US currency and causing it to reverse course against the euro. The MPC voted 6-3 to keep rates at 4.75%, with the three […]

Sterling lower after BoE rate decision

If the Fed’s interest rate decision on Wednesday was a ‘hawkish’ cut, sending the dollar higher,  yesterday’s Bank of England MPC interest rate decision was a ‘dovish’ hold, sending sterling lower lower against the US currency and causing it to reverse course against the euro. The MPC voted 6-3 to keep rates at 4.75%, with the […]

Dollar jumps post Fed

The Fed lowered interest rates by 25bps at yesterday’s meeting, as expected, and guided a further 50bps reduction in 2025, less than the 100bps it had previously indicated – reflecting a firmer inflation forecast for next year – but in line with market pricing ahead of the meeting. However the market now believes it’s more […]

Fed to cut rates again

Sterling remained on the front foot yesterday following the release of firmer than expected UK wage growth data, which saw the market pare back expectations for Bank of England (BoE) rate cuts next year. This morning’s CPI inflation data in the UK were broadly in line with the consensus forecast, leaving the pound trading at […]

Sterling regains ground

The euro traded in a narrow range of about a quarter of cent either side of $1.05 against the dollar during yesterday’s session and is hovering just below $1.05 this morning. Sterling has regained ground, after sliding over the latter part of last week, and is currently trading just shy of $1.27 against the dollar […]

Euro a little firmer

The euro dipped to a low for the week of about $1.0450 during Friday’s session but is trading just north of $1.05 this morning. Sterling finished close to its low for the week on Friday and is just a touch firmer at $1.2630 at the start of play today. EURGBP fell to a multi-year low […]

ECB cuts again, more to come

The ECB lowered the deposit rate by another 25bps to 3% yesterday, the fourth quarter-point cut since June this year, and indicated there’s more to come – the market sees a further reduction of 100bps over the first half of next year – noting that inflation is now expected to settle at around the 2% […]

Euro remains under pressure ahead of ECB meeting

The euro continues to trade around $1.05 to the dollar but remains under pressure ahead of today’s ECB meeting. The single currency has held up around $1.05 since mid-November having fallen from $1.09 prior to the election of Donald Trump. There was a little respite yesterday lunchtime for the euro, where it picked up close […]

Euro drifts lower

The euro has drifted down against the dollar and sterling ahead of tomorrow’s ECB meeting, with widening yield differentials weighing on the single currency. It is trading at $1.05 against the dollar this morning and has weakened to £0.8240 versus sterling, its lowest level since the UK vote to leave the EU in late June […]