Category: Daily blog

Bond yields head further north

A renewed rise in energy prices – oil rose to a new high for the week of over $86 p/b at one stage – contributed to a further re-pricing of central bank rate expectations, higher bond yields and a decline in equity markets.  The dollar didn’t do a whole lot though, ending largely flat on […]

Dollar heading higher again

There was some respite for equity markets yesterday, with  US and European stocks both advancing, amid steady (oil) and lower (gas) energy prices. The dollar was under a little pressure as a result, but stronger than expected US economic data helped limit any downside for the currency. Indeed, with energy prices heading higher this morning, […]

More of the same

It was another day of rising energy prices, rising bond yields and falling equity markets. Perhaps the best that can be said is that energy prices and bond yields both finished off their highs of the day while equity markets finished off their lows of the day. In FX, the euro and sterling fell further […]

Bond yields rise as energy prices surge

Concerns that rising energy prices due to conflict in the Middle East will push up inflation has led the market to pare back expectations for further Fed and Bank of England (BoE) rate cuts and to price out the already slim chances of any further policy easing by the ECB. The re-pricing of BoE rate […]

Oil prices jump amid Middle East conflict

Oil prices have spiked higher following the US-Israel attacks on Iran over the weekend and the latter’s retaliatory actions across the region. Brent crude has jumped by around $7 per barrel – or almost 10% – from Friday’s close to just under $80 p/b, its highest level since mid-January 2025. The dollar is the main […]

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 […]