• A bounce in sterling!

    Sterling bounced by around a penny against the euro yesterday to trade at 90.5p and by about a cent against the dollar to over $1.22, which compares to 93p and $1.20 respectively just a short two weeks ago.  What’s going on? Boris’s trip to Berlin and Paris this week means he is at least now talking to (rather than at) […]

  • Some respite for equities

    There was some respite for equity markets yesterday after a number of down days recently with both European and US indices advancing by around 1%. Core bond yields nudged higher while the dollar is generally a little firmer after the release of the minutes of the Fed’s end-July monetary policy meeting.  Meanwhile, sterling is a touch softer against […]

  • A late summer lull

    There’s a “late summer lull” feel to markets this week with the main currency pairs largely unchanged again. The euro continues to hover around the $1.11 level against the dollar  and at around 91.5p against sterling, while the latter remains around $1.21. Core bond yields fell back after spiking higher on Monday, while both US and European equities ended lower […]

  • Bond yields nudge up

    The euro is steady against the dollar this morning, trading just below the $1.11 level (and so still off its early August lows of just over $1.10), ahead of a potential vote of no confidence in the Italian Prime Minister later today.  The single currency is also largely unchanged against sterling, trading at around 91.5p, having lost ground during the course of […]

  • A tumultuous week!

    In what was a tumultuous week for markets, the euro lost ground against both the dollar and sterling – finishing Friday at circa $1.11 and  91p respectively – as the ECB’s Rehn signalled a “significant and impactful” package of monetary policy stimulus measures at next month’s meeting. This is in the context of subdued economic growth in […]

  • Euro loses ground

    The euro has weakened to around $1.11 against the dollar after ECB Governing Council member Ollie Rehn – ahead of the central bank’s next meeting in just four weeks’ time – said “an  impactful and significant” easing of monetary policy  is required, by which he probably means interest rate cuts and a restart  to QE. This saw the single currency […]

  • Sharp fall in equity markets

    Donald Trump’s decision to delay imposing tariffs on some consumer goods imports from China provided only the briefest of respites for markets , with renewed concerns about the health of the global economy sending equities into a tail spin yesterday (the three main US indices shedding around 3% on the day). The dollar benefited in this environment, strengthening to under $1.1150 against […]

  • Dollar a touch firmer

    The dollar has firmed a little against the euro after Donald Trump said he would delay imposing tariffs on some goods imported from China (until mid-December this year from the initial date of 1st September), with the US currency trading under $1.12 this morning from a low of close to $1.1250 at one point yesterday.  Meanwhile, stronger than consensus UK labour […]

  • A little respite for the pound

    Sterling has recovered a little ground against the euro at the start of this week, having fallen to fresh lows of over 93p at the end of last week, and against the dollar, having weakened to around $1.20, though this may well prove fleeting and the currency looks set to remain under pressure absent any positive developments […]

  • Sterling slides as UK economy contracts

    Sterling lost further ground on Friday and for a time this morning was trading at 93p to the euro and is down to $1.20 against the dollar. Weak UK data – the economy contracted in Q2 – and the continuing uncertainty and concerns about Brexit is putting pressure on sterling The UK economy shrunk by 0.2% Q-on-Q in […]