• Fed cautious on inflation

    The dollar traded up to an intra-day high of around $1.1680 against the euro yesterday but reversed course after the release of the minutes of the Fed’s July meeting, shedding around a cent to just below $1.18 The Fed minutes noted that the recent decline in inflation in the US is likely to prove transitory and that it should move back up […]

  • Better tone to the dollar

    The dollar remains on the front foot generally, helped by stronger than expected US retail sales data published yesterday. The US currency strengthened to under $1.17 against the euro for a time before ceding a little ground, and also rose against sterling and the yen. Sterling was little changed against the euro, trading at over 91p US bond yields edged higher again with […]

  • Dollar firmer

    There was some respite for equity markets yesterday, following last week’s losses, with European and US indices gaining around 1% on average. Bond yields in the core markets also reversed course, with 10-year yields rising modestly on the day (and they are higher again this morning) There was a firmer tone to the dollar, which is […]

  • Busy week of economic data ahead

    Increased tensions between the US and North Korea dominated markets last week, with equities falling (European stocks were off 3% while US indices were down 1.5%), core bonds benefiting from a flight to quality (10-year yields were between 8-10bps lower), and the so-called ‘safe haven’ currencies (Swiss franc, Japanese yen) strengthening The euro was also generally on the front foot. It […]

  • Equity markets under pressure again

    Equity markets remained under pressure amid the on-going tensions between the US and North Korea, with European and US stocks shedding around 1% and 1.5% respectively yesterday. Donald Trump has upped the ante in terms of rhetoric at least, saying that perhaps his previous comments about directing ‘fire and fury’ at North Korea were not strong enough Bond yields […]

  • US-North Korea tensions weigh on markets

    Heightened tensions between the US and North Korea affected markets yesterday. Equities were weaker, with European stocks falling by more than 1% while US stocks also ended lower although they did manage a late rally into the New York close There was also a mini flight to the safety of core government bond markets, resulting in a fall […]

  • Euro trading softer

    The euro gave up some ground to the dollar yesterday, falling very close to the $1.17 level – down from over $1.19 last week – before inching higher (it is trading at circa $1.1750 this morning) Sterling came under further pressure against the euro for a time yesterday. It weakened to almost 91p at one stage before recovering some ground though […]

  • Euro off its highs

    The euro lost some ground against the dollar on Friday following the release of the latest ‘payrolls’ report in the US, falling to almost $1.17 at one stage. It has recovered some ground since, though at $1.18 this morning it remains off last week’s high over $1.19 Employment in the US rose by 209,000 in July, ahead of the consensus forecast […]

  • Sterling falls post BOE policy decision

    Sterling fell after the latest Bank of England (BOE) policy decision, weakening to almost 90.5p against the euro and dropping back to around $1.31 against the dollar. UK bond yields also fell post the decision, with 2- and 10-year yields declining by around 6bps and 10bps respectively The BOE’s Monetary Policy Committee (MPC) decided to keep interest rates unchanged […]

  • Focus remains on the euro

    In what are otherwise relatively quiet ‘summer markets’, the focus remains on the euro, which has risen sharply  over the past month or so. It advanced further against the dollar yesterday, trading up $1.19 before easing back a little, and looks like it wants to test the $1.20 level. Elsewhere, bond yields in the core markets were […]