In a significant development for the UK economy, inflation has finally fallen back to the Bank of England’s 2% target for the first time in nearly three years. This encouraging news has sparked hopes that the central bank may soon begin easing its monetary policy and cutting interest rates. The …
Read More »British Inflation Data Eases Pressure on Rate Cut Expectations
Inflation in Britain saw a less-than-expected decline in April, with a key core measure showing resilience, prompting investors to reconsider their bets on a rate cut next month. This development could potentially bolster embattled Prime Minister Rishi Sunak ahead of anticipated elections later this year. Consumer prices rose by an …
Read More »Sterling retreats after BoE paved way for rate cut
On Thursday, the British blue-chip stock index set a record as the Bank of England moved closer to reducing interest rates, with a second official endorsing the move. Meanwhile, the pound sterling and UK bond yields declined. Sterling hit a two-week low of $1.2446, down as much as 0.4% vs …
Read More »BoE’s Pill: British central bank to think about rate cuts over next few meetings
Chief Economist of the Bank of England, Huw Pill, signaled to markets that the UK’s central bank will be considering rate cuts over the next few meetings, provided there are no “big disturbances” in the economy. BoE’s Pill spoke during a virtual question and answer period regarding the BoE’s Monetary …
Read More »BoE’s Policy Preview: Implications for the Pound Sterling
The Bank of England is at a crossroads as it prepares to announce its interest rate decision. Financial markets are abuzz with anticipation, expecting the BoE to start reducing interest rates from the June meeting. Traders have already priced in 53 basis points (bps) of easing this year, implying at …
Read More »Market Drivers; US Session, May 7
With the global markets in the midst of a generalised consolidation phase, the US dollar saw some decent gains as the FX universe gradually turned its focus to the announcement of the US CPI next week. In the face of further declines in US rates, the USD Index, or DXY, …
Read More »Sterling Traders Eying 1.2600
During the North American session, the British Pound registered modest gains versus the US Dollar. The Bank of England (BoE) will decide on monetary policy in a week. An upbeat market sentiment underpins the GBP/USD’s higher trading at around 1.2579, above a key support level. The GBP/USD is neutral to …
Read More »Strong UK PMIs, BoE Pill’s Hawkishness Boost Sterling
The Pound Sterling rebounds from 1.2300 on robust increase in UK Services preliminary PMI for April. The UK preliminary Services PMI data surprisingly jumped to 54.9 from 53.1Two BoE policymakers are lined up to speak as investors seek clues about the interest-rate outlook. The Pound Sterling (GBP) bounces back from …
Read More »Sterling Reaping Fruit of Upbeat UK Data
The Pound Sterling has reacted positively to the strong UK Manufacturing PMI, which showed a 1.3% increase in March, the slowest pace since December 2021. The UK’s Manufacturing PMI landed above the 50.0 threshold, marking expansion from contraction at 50.3, higher than expectations and the former reading of 49.9. The …
Read More »EUR/GBP modestly surges following BoE’s decision, Eurozone inflation data
On Thursday, the EUR/GBP jumped to 0.8545, up 0.25%. The pair’s daily chart shows a neutral to negative outlook, with bulls striving to restore control and create momentum. Buyers gained pace after the Eurozone’s strong inflation numbers, but the Bank of England’s hawkish stance may limit the gains. The EUR/GBP …
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