Sterling fell after the Bank of England’s resounding interest rate hike, the biggest since 1995, in its attempt to tame inflation that is expected to exceed 13% in the coming months. In particular, the BoE raised its interest rate by 50 basis points to 1.75%, while warning that the British economy is on the brink […]
Tag: sterling
Closer to absolute parity with the dollar is the euro
LAST UPDATE: 12:56 p.m The euro edged even closer to absolute parity with the dollar today as the euro zone’s energy supply sufficiency and concerns about the bloc’s economies continue to weigh on the common European currency. Fears of a recession have risen in recent weeks amid growing uncertainty over the bloc’s energy supplies, with […]
Ebury: Macroeconomic data in focus
By Enrique Diaz – Alvarez * Stock markets and risk markets in general recovered sharply last week, while US interest rates did not. The result was a predictable sell-off of the dollar, which mainly benefited the currencies of Europe and Latin America. The first was reinforced by differences in closure rates in the Atlantic, and […]
Investors queue to sort British pound with a possible recession on the horizon
Traders are increasingly sorting into the British pound as the cost-of-living crisis in the UK begins to intensify, CNBC reports. Inflation rose to 9% a year earlier in April, a 40-year high as food and energy prices continued to rise as the UK energy regulator raised its household energy price ceiling by 54% at the […]
Ebury: Week … ECB and Inflation in US – UK
By Enrique Diaz – Alvarez * The euro fell to the bottom of the G10 currency rankings over the weekend amid concerns about both the duration of the war in Ukraine and the French presidential election. The massive interest in the US bond market continues, with the 10-year yielding a staggering 30 basis points per […]
Ebury: The euro ‘finds’ support
By Enrique Diaz – Alvarez * The euro, along with the Swedish krona and the Swiss franc, topped the G10 currency rankings last week. The sense that we may be entering a less catastrophic phase of the Russian invasion certainly helped, as did the fall in oil prices following Biden’s announcement of massive oil sales […]
Declining retail sales and deteriorating consumer confidence ‘drop’ sterling
The British pound fell against both the US dollar and the euro on Friday after consumer sentiment fell to a 16-month low and retail sales plummeted. The National Statistics Office said retail sales volumes fell 0.3% in February from January as weather prevented some buyers from going outside. Meanwhile, a GfK survey found that British […]
The euro is becoming “fashionable” again as traders expect a more hawkish policy from the ECB
Investors are investing in rising euro-linked derivatives, according to industry and market sources, as they bet that the European Central Bank’s “hawkish” trend marks the end of eight years of negative interest rates. in the eurozone, as reported by Reuters. The euro has hit a three-month high near 1.15 against the dollar since the ECB […]
Ebury: Central banks and inflation firmly in focus
By Enrique Diaz – Alvarez * We have warned that the European Central Bank’s plan to wait until 2023 before raising interest rates in an environment of inflationary pressures was extremely dreamy, and we were fully justified last week. The huge rise in January inflation in the Eurozone set the stage for a bold turn […]
Ebury: Dollar ‘getting harder’
By Enrique Diaz – Alvarez * In a somewhat incomprehensible development, the dollar is struggling so far in 2022, although US bond yields are rising and the market has discounted the US Federal Reserve’s interest rate hikes and expects more. Last week, the dollar sold out against every major currency except the Russian ruble, which […]