Category: Daily blog

ECB set to cut rates again

The Fed left interest rates unchanged at 4.25%-4.5% following yesterday’s meeting, as widely expected, and said it needed to see further progress on inflation falling towards the 2% target before considering lowering them again. The market reaction was muted enough. In FX, the euro and sterling, which lost ground to the dollar early in yesterday’s […]

Fed expected to keep rates on hold

US equity markets partially rebounded yesterday after Monday’s tech-led fall. Bond yields edged higher, having fallen during the sell-off in stocks, while the Japanese yen and Swiss franc gave up most of their (modest) safe-haven gains. The euro is little changed against the dollar from yesterday morning, trading at around $1.0425, while the pound is […]

Bonds rally as stocks fall

A tech-led sell-off in US stocks yesterday triggered a flight to the safety of government bonds, resulting in a fall in yields, and the Japanese yen and Swiss franc, which strengthened against the dollar and other currencies. The euro and sterling held their own against the dollar, ending the day little changed from Friday’s closing […]

Dollar off Friday’s lows

The dollar fell further on Friday, amid some softer than expected US economic data, having lost ground during Donald Trump’s first days in office (though of course it had risen sharply since his election in early November). The euro and sterling gained around 2 and 3 cents against the US currency on the week respectively, […]

Dollar on the back foot

In remarks to the World Economic Forum in Davos yesterday, Donald Trump said he would put pressure on OPEC to lower oil prices and demand the Fed cut interest rates in response to the resulting lower inflation. He also said he would cut taxes for business in the US and would tariff goods coming into […]

Dollar a touch firmer this morning

The euro traded up to a high of almost $1.0460 against the dollar yesterday but has since slipped back to just under $1.04, a little lower than yesterday morning. Sterling has also come back from highs yesterday of about $1.2375 to trade a touch below $1.23, again down slightly from yesterday morning. EURGBP remains in […]

Euro, sterling resilient versus dollar

The euro and sterling were relatively resilient against the dollar yesterday, revisiting and (in the case of the pound) breaching Monday’s highs. They have come back a little since to trade at around $1.0410 and $1.2330 respectively this morning, with EURGBP once again largely unchanged in and around £0.8450. In its first couple of days […]

Volatile start to week in FX markets

The dollar dropped quite sharply yesterday after the Wall Street Journal reported that Donald Trump would not sign an executive order announcing tariffs in his first day as President, but would “instruct federal agencies to study tariff policies and the US’s trade relationship with China, Canada and Mexico”, though Trump subsequently said he would impose […]

Dollar a touch softer

The euro closed out last week at $1.0270 against the dollar, up slightly from the previous Friday’s close, while sterling shed a half a cent to finish at $1.2170, with EURGBP about half a penny stronger on the week just shy of £0.8450. They are both a little firmer against the US currency this morning, […]

Main currency pairs not much changed

The euro and sterling have been essentially moving sideways against the dollar since bouncing off their lows earlier in the week. The single currency is trading at around $1.0290 this morning, little changed from yesterday morning, while the pound has slipped to around $1.2190 (from over $1.22) on the back of weaker than expected UK […]