Sterling slips to two-week low against resurgent euro

Sterling continued its 10-day decline against a resurgent euro yesterday, falling to its lowest in two weeks, as investors looked ahead to British growth data later in the week. With Chinese market turmoil and a slide in commodity prices throwing doubt over the strength of global growth, some sterling traders are starting to question whether the … Continue reading →

Europe Moves to Restore Funding to Greece

Sterling hit a 7-1/2-year high against a trade-weighted basket of currencies yesterday as traders bet the Bank of England would raise interest rates early next year, while euro zone monetary policy remains ultra-loose. That diverging outlook was crystallised this week, with Bank of England Governor Mark Carney saying a first rise in interest rates since the … Continue reading →

Greek Drama Proves to be Storm in a Teacup

The pound rose against the dollar on Friday as hopes for a deal to avert a Greek exit from the euro zone and rebound in Chinese shares bolstered investor confidence. GBP/USD hit highs of 1.5551, the most since July 7, before pulling back to 1.5494 in late trade, ending up 0.79% for the day. The pound … Continue reading →

Sterling inches up from lows after budget

Sterling inched up from a one-month low yesterday, drawing some support from a budget bill that was not as fiscally tight as many investors had expected, as well as strong numbers from the housing market. The pound was unmoved by the Bank of England’s decision to, as expected, keep its benchmark interest rate at the record low … Continue reading →

Sterling Drops to 1 Month Lows

Sterling fell 1 percent against the euro and nearly 0.7 percent against the dollar on Wednesday, after Britain’s finance minister announced spending cuts in a budget speech that also lowered growth forecasts. Growth for 2015 was forecast to be 2.4 percent, down from a forecast of 2.5 percent made in March, George Osborne told parliament, … Continue reading →

Super Sunday it is! Greece has Final Final Deadline Set – Honestly

The pound was sold off in currency markets yesterday as mixed messages from the ongoing Greek saga continued to push the majors one way then another, with another deadline day now set for Sunday. This gave the euro a slight reprieve, pushing GBP/EUR back down under the 1.40 handle. Weaker than expected UK manufacturing production data also … Continue reading →

Greece faces last chance to stay as cash runs out.

Sterling climbed against the euro yesterday after Greek voters overwhelmingly rejected terms of a rescue package, boosting safe-haven flows into Britain’s bonds and currency. There was no sense of panic selling in the euro, amid expectations the  European Central Bank would take policy action to stabilize the market if necessary and hold emergency funding to Greek … Continue reading →

Brave Greeks Defy Euro Paymasters

The pound edged higher against the U.S. dollar on Friday, after data showed that U.K. service sector expanded at a faster rate than expected this month, although gains were capped by the ongoing concerns of the Greek debt crisis. Trading volumes were thin with U.S. markets closed for a national holiday. GBP/USD hit 1.5639 during European … Continue reading →

Euro Remains Under Pressure in Key Week for Greece

Strength in the UK currency remains as no agreement on the Greek issue continues to drag the euro lower, keeping GBP/EUR around the 1.40 handle. Against the dollar we did see cable capped under the 1.57 level yesterday as better than expected US GDP numbers were printed. However we have seen cable strength in the … Continue reading →

Sterling on the Move as BoE Hawk Says Prepare for Rate Rise

US equity markets were little changed at the closing bell and the dollar remained mixed as optimism surrounding a possible Greek deal this week has been offset by hawkish comments from Fed Governor Powell. He suggested that the odds of a rate hike in September were 50-50 and said he also expects a second hike in December, providing the … Continue reading →