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Pound loses ground in 2022

19 Dec 2022

This year so far, Sterling has dropped by 9.6% versus the US Dollar, and 3.4% against the Euro...

Housing market pain points

02 Dec 2022

In UK property news, mortgage approvals have dropped by 20% in the last two months, and house prices have fallen at the fastest pace since June 2020...

Fourth-best G10 performer

28 Nov 2022

Sterling is the fourth best performer of the G10 currencies and has attained around three-month highs versus the US Dollar...

In the past week, Sterling has been approximately 1.0% higher against a basket of other major currencies, and hit a two-and-a-half-month high versus the US Dollar during today's Asian trading session of $1.1872...

Gaining on a weaker Dollar

14 Nov 2022

‘Prepared to take the necessary decisions’

07 Nov 2022

Despite rapid increases in interest rates by the European Central Bank, several Eurozone countries are recording double-digit price increases in consumer products...

'Politically embarrassing'

31 Oct 2022

This week, the Bank of England could raise rates by 75 basis points or more on November 3rd in an effort to tame the UK's double-digit inflation...

Hiking in the face of recession

24 Oct 2022

Sterling has recovered today following some selling last week on the back of news that Rishi Sunak is the front-runner to become the next UK Prime Minister...

Who's running the show?

17 Oct 2022

The Pound has climbed around 2.0% against a basket of other currencies in the last week, as markets anticipate a more prudent approach to policy under new UK Chancellor Jeremy Hunt...

Multi-year lows

11 Oct 2022

The Euro continues to trade at the mercy of the US Dollar dynamic, with EUR/USD trading at multi-year lows at the $0.97 level during early morning trading...

U-turning

03 Oct 2022

The Pound has been suffering of late as UK politics take centre stage but managed to recover ground last week. The Bank of England announced emergency purchases of longer dated UK gilts to help support the pension sector and help contain market volatility...

Sterling takes a pounding

26 Sep 2022

The British Pound has taken a beating in the last week as markets have taken a sour view of the new UK Chancellor's mini-Budget. On a trade-weighted basis, against other currencies, Sterling has tumbled by 4% in the last two days and by over 14% year to date...

Steering the UK economy

13 Sep 2022

The Pound has regained some of its losses versus the US Dollar in recent sessions, re-testing the $1.17 level on the back of news that new Prime Minister Liz Truss could inject some fiscal support into the system amid climbing energy bills. However, the Pound may falter if UK borrowing spills over into the latter half of 2023. Recent data has shown that the UK recovered slower than anticipated from the extended June bank holiday. With another bank holiday on the cards this month, there are more concerns that it could slow growth, pushing the UK closer to recession. However, it's hoped the suggested energy caps by Truss could help to bring inflation lower, and go some way towards steering the UK away from an economic downturn. In the rest of the week, significant UK labour market and inflation stats will reach the market and could influence the Sterling exchange rate...

Truss becomes British PM

05 Sep 2022

Liz Truss was announced the new Conservative leader, and thus, Prime Minister for Britain. The Pound fell from the day’s high in the lead-up to the announcement, reflecting the scale of the challenge that awaits Truss and her new cabinet...

Nearing the end?

30 Aug 2022

The Pound has fallen 1.0% against the New Zealand Dollar since the start of last week, despite the Governor of the Reserve Bank of New Zealand hinting at the Jackson Hole Symposium that the central bank may be coming to the end of its aggressive interest rate hiking cycle. The country also published...

UK reaches double-digit inflation

22 Aug 2022

Last week, Sterling slumped against the Euro and the US Dollar despite rising expectations for the Bank of England's next interest rate announcement and some positive UK economic data. However, the week also saw the UK hit double-digit inflationary readings for the first time in 40 years,...

RBNZ set to hike another 0.5%

15 Aug 2022

In New Zealand, Credit Card Spending for July showed a decline, with a key contributor being the fall in fuel prices in the second half of the month. However, recession concerns are surfacing for the second half of 2022 in New Zealand as households and...

Closer to parity

02 Aug 2022

The Pound has tumbled 10% lower versus the US Dollar this year, and the primary focus for Sterling this week is the Bank of England's interest rate decision, which could be key to the Pound's value in coming sessions...

Inflation in focus

25 Jul 2022

Last Wednesday saw the year-over-year rate of consumer inflation in Canada reach 8.1% in June, up from a 7.7% increase in May. The rising cost of gas was mainly responsible, with prices driven up by supply struggling to cope with demand and wider global energy pressures caused by Russia’s invasion of Ukraine...

BoC hikes interest rates to 2.50%

19 Jul 2022

The Canadian Dollar moved higher last week as the Bank of Canada hiked interest rates by a full percentage point from 1.50% to 2.50%, despite expectations for a smaller rate increase to 2.25% this time around. This took the Sterling to Canadian Dollar exchange rate to its weakest level since 2013...

Confidence drops as interest rates rise

11 Jul 2022

The Pound to Australian Dollar exchange rate ended the week around 1.2% lower than it started, and, compared to other G10 currencies, the Aussie Dollar had the best week versus the US Dollar. Last week, the Reserve Bank of Australia raised its cash rate by 50 basis points to 1.35%, the highest rate since May 2019...

RBA rate hikes expected

04 Jul 2022

This week the Reserve Bank of Australia will meet, with Governor Philip Lowe recently indicating the central bankers will be debating between a 25 or 50 basis point cash rate rise. Markets are now expecting the higher rate rise of the two...

Fastest rising costs in 40 years

27 Jun 2022

Last week, Canadian on-the-year inflation readings came in higher than expected for May. Following a print of 6.8% previously, the overall rate surpassed forecasts of 7.4% to hit 7.7%. The reading marked the fastest pace of acceleration since 1983 and could add to the pressure for more aggressive monetary policy decisions in coming meetings...

New records for Aussie labour data

20 Jun 2022

Last week’s labour data for Australia saw the country add 60.6K jobs in May, while the Unemployment Rate remained at its low of 3.9%. Despite low jobless rates, wage growth and labour constraints remain concerns for the Aussie economy as the global cost-of-living crisis continues...

Housing market pressures highlighted

13 Jun 2022

Thursday saw the release of the Bank of Canada's Financial System Review, which noted that central banks worldwide have shifted from focusing on pandemic support to managing rocketing inflation. The report highlighted vulnerabilities in the Canadian housing market and recognised that the Russia-Ukraine war has created global uncertainty and increased volatility in commodity markets...

RBA rate decision ahead

06 Jun 2022

Sterling has dropped 1.90% against the Aussie Dollar in the past month but is trading 0.40% higher today ahead of the Reserve Bank of Australia rate decision in the early hours of Tuesday morning. Economists are predicting a 50 basis-point hike on the high end with the median estimate for a 0.25% hike. Kiwi Dollar strength has followed the Aussie over the last month with GBP/NZD falling 1.30%, on the day Sterling has gained over 0.30%...

RBNZ hikes rates again

30 May 2022

RBNZ Chief Economist Paul Conway believes that New Zealand is ‘well-placed’ to get inflation under control without triggering negative growth, due to the economy's robust labour data. However, this could change depending on upcoming ecostats...

‘Apocalyptic’ prices

23 May 2022

Last week, Bank of England Governor, Andrew Bailey, warned of a ‘very big income shock’ to households and expressed feeling ‘helpless’ in the face of rising inflation. On Wednesday, the UK Inflation Rate rose to 9% in April and is now expected to extend its 40-year high to peak at 10%...

Heading towards parity?

16 May 2022

The Pound to Euro exchange rate closed 1.07% last week higher after reaching its lowest level since October 2021. Meanwhile, the Euro to US Dollar exchange rate briefly break below the 1.04 level for the first time since January 2017, heading closer toward parity...

Recession warning

09 May 2022

The Pound closed 1.8% lower versus the Euro last week in its worst-performing week since April 2021. While major central banks around the world are looking to tighten their monetary policy, the European Central Bank is still treading with caution. Out of the G10 economies, the ECB, along with the Bank of Japan and Swiss National Bank, are the only ones not to have made a move as of yet to battle inflation...

‘Forcefully if needed’

03 May 2022

Bank of Canada Governor Tiff Macklem stated that ‘inflation is too high’ and higher interest rates would be needed. This comes after a half-percentage-point increase in interest rates at the BoC’s last meeting. Macklem went on to say that the central bank is willing to implement inflation-cooling measures ‘forcefully if needed’ after consumer prices hit a whopping 6.7% in March.

Leaning toward a hike

25 Apr 2022

The New Zealand services sector also showed an upswing in March. Meanwhile, the Reserve Bank of Australia released its meeting minutes last week, showing that policymakers were leaning toward an interest rate hike—upcoming inflation and wage data will be in close focus while policymakers weigh their options...

BoC raises rates

19 Apr 2022

Last week, the Bank of Canada decided to hike interest rates from 0.5% to 1.0%, while also announcing the beginning of quantitative tightening. BoC Governor Tiff Macklem spoke in a press conference, saying: 'Canadians should expect the overnight rate to rise toward the bank's assumed 2-3% neutral range', signalling more...

Rate hike expected

11 Apr 2022

The Bank of Canada is expected to hike interest rates on the 13th April, with expectations for a rise from 0.5% to 1.0%. Canada has produced some robust labour market data of late, with stats showing unemployment reaching its lowest levels since the data began in 1976...

GBP/CAD hits weakest since 2019

04 Apr 2022

The Pound to Canadian Dollar exchange rate closed just 0.16% lower and hit its weakest level since October 2019 last week. Today, Canadian Building Permits stats came in at 21.0% in February, following on from January's positively revised -8.20%. Canada will also release high-priority Balance of Trade, Employment Change, Unemployment Rate, and...

UK inflation hits 30-year highs of 6.2%

29 Mar 2022

Last week, UK inflation reached 30-year highs of 6.2% in February, increasing from 5.5% in January. With rising petrol prices, the hospitality sector's VAT returning to 20%, and the April inflation cap taking effect, it's expected households will be squeezed even further. BoE policymaker Ben Broadbent will speak in the week ahead, while UK house prices and mortgage approvals numbers will also be released...

UK and US hike rates

21 Mar 2022

The Pound recovered from a 16-month low versus the US Dollar last week, as both UK and US central banks tightened monetary policy. The Bank of England chose to hike interest rates last week to 0.75% as inflation continues to soar in the UK. BoE policymakers voted 8-1 to hike interest rates by 0.25% in what was the first time in over two decades policymakers have increased borrowing costs at three successive meetings...

GBP/USD hits lowest level since November 2020

14 Mar 2022

Against a host of currency majors, the US Dollar managed to climb further last week as geopolitical risks continued to encourage a flight to safety. The Pound to US Dollar exchange rate closed 1.61% lower, reaching its lowest level since November 2020, when Brexit negotiations took place. One of the main focus points in the coming sessions will be the Federal Reserve's interest rate decision and the Federal Open Market Committee's Economic Projections...

Safe-haven and commodity currencies surge

07 Mar 2022

One of the main drivers of the currency market at the moment is the Russia-Ukraine conflict which is causing a flight to safety and is boosting safe-haven currencies such as the US Dollar against other majors. The Euro is a casualty of the safe-haven demand with investors selling off the single currency. Meanwhile, a surge in commodity prices has increased demand for currencies such as the Aussie Dollar, New Zealand Dollar, and Canadian Dollar.

Commodity currencies receive a boost

28 Feb 2022

Last week, the Reserve Bank of New Zealand increased interest rates once again in line with economists' forecasts. This week, the Reserve Bank of Australia is scheduled to meet, but markets expect interest rates to remain at 0.10%. Commodity currencies have received a boost against other majors on the back of the Russia-Ukraine conflict and the increase in commodity prices. The Pound to Australian Dollar exchange rate closed the week 2.18% weaker, and registered nine-week lows...