• D5951-BOI-CB-Daily-Blog

    Dollar on the back foot

    The dollar is on the back foot after Republicans abandoned a vote in Congress on the healthcare bill (due to lack of support for it), weakening to over $1.0850 against the euro and to Y110 against the Japanese yen. US bond yields have also fallen in overnight trading in Asia – by more than 5bps to circa 2.35% in the […]

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    UK retail sales rebound in February

    The vote on the healthcare bill in the US congress has been postponed until today, with President Trump issuing an ultimatum to Republicans to either vote for the repeal and replacement of Obamacare or be left with it and move on. Markets view the vote as a test of whether and to what extent the […]

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    Euro still hovering around $1.08

    The euro is hovering around the $1.08 level against the dollar, which is the top of the range of $1.04 to $1.08 it has occupied for the most part in 2017 to date. The on-going improvement in the Euro area economy, indications from the ECB that no additional monetary policy stimulus is likely to be required, and some easing of market concerns about the […]

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    UK inflation picks up in February

    The annual rate of inflation in the UK jumped to 2.3% in February (from 1.8% in January), its highest level since September 2013. The Bank of England expects inflation to reach almost 3% in the opening quarter of 2018, though it also sees higher inflation eroding households’ purchasing power and thus dampening spending The latest inflation reading reinforced the markets’ expectation that […]

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    Euro on front foot

    The euro is on the front foot this morning and is trading close to $1.08 against the dollar. The results of  a poll conducted following last night’s  first French presidential television debate, which show Macron considered to have performed best in the three categories polled – most convincing, best agenda, fittest for office – is providing […]

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    Sterling firmer post BOE meeting

    Sterling is firmer following last week’s Bank of England policy meeting –  it has jumped to over $1.24 against the dollar and is trading at just over 86.5p against the euro The Bank of England’s MPC left interest rates unchanged at 0.25% but one member voted for an immediate quarter point hike. Moreover,  ‘some’ other members noted that it wouldn’t […]

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    Dollar falls post Fed

    The Fed raised interest rates by 25bps yesterday (to a range of 0.75% to 1%) and indicated that a further two quarter point hikes is likely to be appropriate over the remainder of this year. Judging by its response following the meeting, the market expected the Fed to signal more than two, with the dollar weakening to over $1.07 against the euro and […]

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    Oil prices under pressure

    Oil prices fell further yesterday after OPEC reported that Saudi Arabia had increased production in February, with Brent crude trading down to a low of around $50 p/b at one stage. However, Saudi Arabia has stated its commitment to the output cuts agreed last November – it should be noted that it cut production in January by more than was required under […]

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    Dollar recovers some ground

    US yields resumed their move higher yesterday, having dipped on Friday, with 10-year yields rising by 5bps or so and setting a new high of 2.63% in the process. The dollar has also recovered some ground and is trading close to $1.06 against the euro this morning (from over $1.07 first thing yesterday) As noted yesterday, last Friday’s very solid […]

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    Euro on the front foot

    The euro has been on the front foot since last Thursday’s ECB meeting and press conference, at which Mario Draghi said the risks to the economic outlook in the Euro area had become less pronounced and any need for additional stimulus had diminished. Reports circulated on Friday that the ECB also had a ‘cursory’ discussion on Thursday about the […]