Category: Daily blog

Dollar on defensive after Moody’s downgrade

The dollar chalked up modest gains against the euro and sterling on Friday, reaching intra-day highs of around $1.1130 and $1.3245 respectively, following the release of firmer than expected US inflation-related data.  However, it has retreated again following Moody’s one-notch downgrade to the US triple A credit rating, announced after the close of business on […]

Main currency pairs little changed

Softer than expected US economic data contributed to a sharp enough decline in bond yields yesterday, though the dollar didn’t do a whole lot. It is not much changed from yesterday morning’s levels against the euro and sterling, trading just north of $1.12 and $1.3320 respectively. The pound is marginally firmer against the euro at […]

Euro and sterling off highs vs dollar

The euro and sterling rose to highs of around $1.1270 and $1.3360 against the dollar yesterday, before retreating as the latter got some support from rising US bonds yields. They are trading at about $1.12 and $1.3290 respectively this morning, which in turn sees EURGBP a touch firmer at around £0.8430. First-quarter GDP data in […]

Dollar gives up ground

The dollar has given up a good bit of the ground it made at the start of the week, with slightly softer than expected US inflation data for April weighing on the currency. The euro and sterling have both rebounded by the best part of a cent from yesterday morning’s levels to trade at around […]

Stocks rally, bond yields higher

The significant de-escalation of the ‘trade war’ between the US and China prompted a sizeable reaction in markets, with equities rallying strongly, bond yields rising quite sharply, and the dollar strengthening across the board. The latter rose to intra-day highs of around $1.1060 and $1.3140 against the euro and sterling respectively, but has since fallen […]

Dollar firmer on US-China ‘de-escalation’

The US and China have reported “substantial progress” following trade talks over the weekend, including an agreement to substantially reduce tariffs on each other for 90 days. (This will see the US lower tariffs on China from 145% to 30%, and China reduce tariffs on the US from 125% to 10%). Not surprisingly, the dollar […]

A ‘hawkish’ BoE rate cut

The Bank of England MPC voted 5-4 to cut interest rates by 25bps to 4.25%, with two members voting for a 50bps move, which wasn’t so much of a surprise, but two others voting to keep rates at 4.5%, which was a ‘hawkish’ surprise. The UK and US announced a new trade ‘deal’, the first […]

Dollar firmer post Fed; BoE up next

There’s been a muted enough market reaction to the Fed’s latest policy decision. It left interest rates unchanged, as widely expected, and indicated it is likely to remain on hold for a while longer yet as it assesses the impact of tariffs on the US economy. In FX, the dollar has gained some ground against […]

Dollar a little softer ahead of Fed

The dollar weakened a little yesterday alongside a fall in US stocks, which ended lower for a second session running. Ahead of the Fed’s latest interest rate announcement later today, the US currency is trading at around $1.1360 and $1.3350 versus the euro and sterling respectively. EURGBP remains very tightly range-bound, hovering just above £0.85. […]

Payrolls day in the US

The euro and sterling are trading in relatively narrow ranges against the dollar. They are both a touch firmer than this time yesterday morning at around $1.1325 and $1.3310 respectively, though down a little from their best levels yesterday (close to $1.1350 and $1.3350). EURGBP is also largely unchanged, as it continues to trade in […]