Latest Currency News Continued - page 7

Markets More Confident over June Fed Rate Cut After US Jobs Data, GBP/USD Surges to 7-Month Highs The latest US jobs data overall suggested that the very strong January report had been overstated and that the labour market overall was less tight. The dollar moved lower and the Pound to Dollar (GBP/USD) exchange rate surged to 7-month highs at 1.2890 before settling around 1.2975. Following the data, markets were more...

Benign global risk conditions and expectations of an ECB rate cut ahead of the Bank of England (BoE) have underpinned the Pound in global markets with the Pound to Euro (GBP/EUR) exchange rate strengthening to 3-week highs just below 1.1740. There is likely to be further strong resistance on any GBP/EUR move to 1.1765 and a slide in risk appetite would also hurt the Pound. The dollar has weakened in global currency...

The latest US jobs data overall suggested that the very strong January report had been overstated and that the labour market overall was cooling. The data also reinforced expectations that the Federal Reserve would be in a position to cut interest rates in the first half of 2024. Market expectations of a June cut increased to near 80%. In response, there was limited decline in US yields and the dollar retreated...

GBP/USD Edges Higher to Fresh 1-Month Highs, UK Growth Concerns Cap Gains The dollar has continued to lose ground on Thursday, driven to an important extent by a further decline in bond yields. The move was led by USD/JPY and, although the Pound has moved higher, it has underperformed other risk-orientated currencies with UK growth concerns still a significant element. The Pound to Dollar (GBP/USD) exchange rate has...

The Pound to Euro exchange rate (GBP/EUR) was unable to make headway on Wednesday and settled below the 1.1700 level. The budget failed to lift the Pound and the focus will now be on Thursday’s ECB policy meeting to see if traders can force a breakout from narrow ranges on dovish ECB talk. According to MUFG; “We have been continuing to recommend a short EUR/GBP trade idea on the back of our expectations that the ECB...

The UK budget failed to shift the dial on the Pound-Dollar exchange rate (GBP/USD) to any significant extent given that the headline measure of a cut in National Insurance rates had been flagged in advance. The Pound to Euro exchange rate retreated to 1.1680 before stabilising around 1.1685. The US data and Fed testimony had a greater market impact. The data overall was slightly weaker than expected while Fed Chair...

The Canadian dollar has been unable to make any headway in March amid concerns over the domestic economic outlook as higher interest rates bite. The Pound has held firm in global markets on hopes for a UK recovery. In this context, the Pound to Canadian dollar (GBP/CAD) exchange rate has hit 6-month highs just below the 1.7300 level on Wednesday. If there is a positive response to the UK budget with net gains in...

The Pound to Dollar (GBP/USD) exchange rate drifted ahead of Tuesday’s New York open and then finally broke above the 1.2700 level after slightly weaker-than-expected US data. GBP/USD posted 1-month highs at 1.2730 and held the gains. GBP/USD will now need to hold above 1.2700 into and through the major events on Wednesday with the UK budget and congressional testimony from Fed Chair Powell. Favourable developments...

The Pound to Euro exchange rate has held steady, but unable to break above the 1.1700 level. Traders will be looking at Wednesday’s UK budget and Thursday’s ECB policy decision to attempt a range break. UK data releases have not provided further currency support and domestic equity markets have also moved lower, limiting Pound support. The British Retail Consortium (BRC) reported that UK like-for-like sales...

Pound Sterling has edged higher on Monday while the US Dollar has lost some ground against European currencies. The Pound to Dollar exchange rate (GBP/USD) has moved to test 1-week highs at the 1.2700 level after the New York open. GBP/USD has already tested the 1.2700 level four times in the last 10 days without being able to make a breakthrough. Scotiabank commented; “A clear and sustained push through 1.2710...