• Muted reaction to Trump’s tariffs

    There has been a muted enough market reaction to the news that Trump has actually gone ahead and raised the tariff on $200bn worth of US goods imports from China, though the damage had already been done through the course of this week. Asian equities are flat to higher overnight, having fallen in recent trading sessions; after recent losses, European stocks have […]

  • Euro-dollar steady

    Notwithstanding falling stocks this week, which is occurring amid heightened concerns about the US-China trade situation, the euro-dollar exchange rate has been quite steady through it all, trading this morning pretty much where it closed out last week at just under $1.12. The main beneficiary in the current market environment has been the yen, which tends to gain ground during times […]

  • Stocks under pressure

    Equity markets were under pressure again yesterday, as trade concerns remained to the fore following Trump’s tariff tweets, with both European and US indices shedding around 2%. This prompted a further dip in core bond yields, with German 10-year yields back in negative territory (at almost -0.05%) and equivalent US yields down to about 2.45%, their lowest level since early […]

  • Trump’s tweets trouble markets

    Donald Trump’s tariff tweets troubled markets yesterday – the US President threatened to impose a 25% tariff on all goods imports from China – with US and European equity markets losing ground (albeit they closed off their lows) and bond yields in the core markets  falling (10-year yields in the US are below 2.5% again). There wasn’t, though, much change in […]

  • Dollar on the front foot

    The dollar has been on the front foot since Wednesday’s Fed meeting – at which interest rates were left on hold and the chances of a cut anytime soon seemingly ruled out – strengthening to around $1.1160 against the euro, not far off its most recent high of $1.11 in late April. The pound is also […]

  • Fed firmly on hold

    The euro briefly strengthened against the dollar following yesterday’s Fed meeting – at which interest rates were left unchanged – getting up to over $1.1250, before falling back again to just under $1.12 as it became clear that the Fed is firmly on hold despite the fall in underlying inflation over the past few months. The pound is firmer ahead of today’s Bank […]

  • Euro Area growth picks up

    The euro has gained some ground against the dollar, trading at almost $1.1225 this morning, supported by better than expected GDP data for the Euro Area, while sterling is firmer against both the single currency and the dollar, at just under 86p and just over $1.30 respectively, with the pound benefiting from reports of progress in the Brexit talks taking place […]

  • Dollar a little softer again

    The dollar is a little softer again against the euro and sterling, trading at almost $1.12 and about $1.2950 respectively, weighed by slightly weaker than consensus inflation data in the US, while the single currency continues to hover around the 86.5p level against the pound. Meanwhile, bond yields in the core markets are edging lower this morning, with […]

  • Dollar a touch softer

    The dollar ended the week a touch softer against both the euro and sterling, closing at around $1.1150 and $1.29 respectively, despite stronger than expected GDP growth data out of the US on Friday. This left the pound trading at around 86p against the single currency at the close of play and so largely unchanged on the week as a […]

  • Euro slips again

    The euro has found it tough going against the dollar this week. It has slipped further, trading down to a low of around $1.1120 yesterday before recovering a little, but at just below $1.1150 this morning it is now down about a cent from last week’s close. Sterling is holding up a little better against the US currency, […]