• Daily blog

    Dollar firmer

    Yesterday’s Blog noted that US producer price inflation data would garner attention following firmer than forecast consumer price inflation data released earlier in the week. In the event, another set of stronger than forecast numbers sparked a (US-led) rise in bond yields and a strengthening of the dollar. The latter has gained around three quarters […]

  • Daily blog

    Bond yields edging higher

    The euro and sterling have remained in relatively narrow ranges against the dollar over the course of this week, having popped higher at the end of last week following the US employment report. They are trading just shy of $1.0950 and a touch above $1.28 respectively this morning, with the euro-sterling cross still at about […]

  • Daily blog

    Main currency pairs little changed

    There has been a muted reaction in FX markets to yesterday’s inflation reading in the US, which came in firmer than expected for a second month running in February, with the main currency pairs largely unchanged. The euro and sterling are currently trading at around $1.0950 and $1.28 respectively, leaving EURGBP still hovering in and […]

  • Daily blog

    Sterling retreats

    Sterling is giving up some ground after the release of slightly softer than forecast labour market data in the UK earlier this morning, falling back to under $1.28 against the dollar and to about 85.5p against the euro. The latter, meanwhile, has drifted a little lower against the dollar (to $1.0930), ahead of CPI inflation […]

  • Daily blog

    Sterling gains ground

    Sterling was on the front against both the dollar and the euro last week, supported by market expectations that the Bank of England will lower interest rates later and by less in 2024 than the Fed and the ECB. The pound extended its gains on Friday, strengthening by around half a cent against the dollar […]

  • Daily blog

    ECB close to cutting rates

    Investors clearly liked what they heard yesterday from Christine Lagarde, who indicated the ECB is getting close to cutting interest rates, with Europe leading a rally in equity markets. The dollar lost some ground in this so-called “risk on” environment and is trading at around $1.0940 to the euro and $1.28 to the pound this […]

  • Daily blog

    ECB meeting the focus today

    The euro has gained ground against the dollar following Fed Chair Powell’s testimony to Congress and some slightly softer than expected US labour market data, with the single currency trading close to $1.09 (its highest level since early January) ahead of today’s ECB meeting. The pound is also slightly firmer against the dollar just shy […]

  • Daily blog

    Focus on Powell’s testimony to Congress

    The euro and sterling are both marginally firmer against the dollar following softer than expected US economic data yesterday and ahead of Fed Chair Powell’s testimony on the outlook for monetary policy later today. They are trading just north of $1.0850 and back above $1.27 respectively this morning, leaving the euro-sterling cross still at around […]

  • Daily blog

    Quiet start to the trading week

    It was an uneventful start to the week in FX markets with the main currency pairs largely unchanged. The euro remains in and around $1.0850 against the dollar this morning while sterling is trading at $1.2670, leaving EURGBP at about £0.8550. It was similarly quiet in bond and equity markets yesterday. US 10-year bond yields […]

  • Daily blog

    Hectic week ahead!

    The dollar lost some ground against the euro and sterling on Friday following softer than expected US economic data, and remains lower this morning at around $1.0860 and $1.2680 respectively, with the euro-sterling cross at 85.6p. In truth, though, the main currency pairs traded in narrow ranges last week, but that could change this week […]