Category: Daily blog
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Euro strengthens to one year high
The euro strengthened to nearly 89p versus the pound and just under $1.14 against the dollar, while core and periphery European government bond yields rose German and French 10-year yields rose by circa 14 basis points on the back of comments by ECB president Draghi that all signs now point to a strengthening and broading recovery in the […]
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Quiet start to the week
It was a quiet start to the week with the major currency pairs largely unchanged. The euro continues to trade in a relatively tight range of $1.1120 to $1.1220 against the dollar and is still hovering around 88p against sterling Bond yields in the core markets edged lower yesterday. The decline in recent weeks has […]
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Sterling off its lows
The past couple of weeks have revealed that the Monetary Policy Committee of the Bank of England is split down the middle regarding the outlook for UK interest rates, between those who favour ‘no change’ and those who believe a near-term increase is warranted The possibility that UK interest rates might rise sooner rather than later is providing some support to sterling in the face […]
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Some respite for sterling
It was a quiet enough day on the currency markets yesterday. There was some respite for sterling remaining largely unchanged at just under 88p versus the euro, while the euro was also steady against the dollar at $1.11. Brent oil prices rose off their lows to $45.50 per barrel According to the ECB’s latest Economic Bulletin […]
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BOE’s Haldane says rate hike would be prudent
Sterling is little changed against the euro at just over 88p notwithstanding comments by the Bank of England’s Chief Economist, Andrew Haldane, that an increase in UK interest rates would be ‘prudent…relatively soon’. This leaves him siding with the three other BOE members who voted for an immediate 25bps hike at last week’s meeting (he held off voting for an increase […]
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Sterling under pressure
Sterling fell to over 88p against the euro yesterday after Bank of England Governor Mark Carney said now is not the time to increase interest rates, citing still subdued domestic inflationary pressures, particularly ‘anaemic’ wage growth, and saying that he wants to see how the UK economy reacts to the ‘reality of Brexit negotiations’ The dollar continues to regain […]
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Dollar firmer at the start of week
The dollar was firmer at the start of the week, strengthening to around $1.1150 against the euro and to $1.2750 against sterling while also gaining ground against the yen (to over Y111). US bond yields also nudged up, with both 2- and 10-year yields closing about 5bps higher on the day Comments by Fed member […]
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Dollar a little firmer
The dollar gained a little ground against the euro last week as the Fed raised interest rates by 25bps, indicated another hike is likely over the remainder of this year, and set out a plan for reducing the size of its balance sheet, something which Fed Chair Yellen says could get underway relatively soon US […]
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Sterling strengthens on MPC 5-3 vote
Sterling strengthened against both the euro and the dollar after the Bank of England’s MPC voted 5-3 to keep interest rates unchanged at its latest policy meeting. The number of dissenters, all of whom favoured an immediate 25bps increase in rates, was more than the market expected and so took it completely by surprise For those MPC members who […]
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Fed hikes interest rates
The Fed raised interest rates by 25bps at yesterday’s meeting, as widely expected, and signalled that one further quarter point increase is likely over the remainder of this year (it also still sees a further four 25bps hikes next year), while also outlining a plan to very gradually reduce the size of its balance sheet which it […]