GBP Sterling has begun the day on the backfoot after UK retail sales for August disappointed. The Office for National Statistics reported earlier this morning that sales volume unexpectedly dropped 0.9% in the month of August, leading to the fourth consecutive monthly decline when previous months were revised lower. Economists expected a 0.5% rise. The report added that August’s drop appeared partly to reflect reduced supermarket sales as more people ate out following the relaxation of Covid restrictions. EUR After losing ground yesterday, the euro is trading flat against the dollar ahead of this morning’s release of [...]
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GBP The pound has fallen against the dollar, but remained steady against the Euro in early trading. The pound has failed to make any significant gains following yesterdays higher than expected inflation data and the cautious mood around equity markets has extended some support to the safe haven greenback. US retail sales due for release this afternoon will be the next focus of attention for traders. Prime minister Boris Johnson reshuffled his senior minsters on Wednesday, mostly in non-economic positions. Chancellor Rishi Sunak remains in his post, as does Brexit minister David Frost. EUR ECB President Christine [...]
GBP Sterling has gained modestly against the dollar and is trading flat against the euro this morning after UK inflation hit a nine year high last month. The Office of National Statistics (ONS) report released early this morning showed consumer prices rose by 3.2% in August after a 2% rise in July, the highest rate since March 2012. The 1.2% rise in the space of a month, marked the sharpest such increase since detailed records begun in 1997. Economists had been expecting a 2.9% reading for August. The rise in inflation should start a debate amongst Bank [...]
GBP Sterling remained steady in early trading as employment data released this morning showed British employers added 241,000 to their payrolls last month and the unemployment rate was 4.6% for the second quarter in line with expectations. Tuesday’s data shows a continued recovery in the jobs market as the government phases out its furlough support scheme which will finish at the end of this month. Brexit headlines remain in the news after Brexit minister David Frost threatened that the UK may unilaterally suspend the Northern Ireland protocol unless the EU move their stance in negotiations. EUR ECB [...]
GBP Sterling has begun the week down against the dollar , but steady against the euro . The pound has come under pressure after Friday’s GDP figures revealed that Britain’s economy from the lockdown, virtually stalled in July despite the removal of most pandemic restrictions . Also undermining sterling , was the European union’s Brexit chief Maros Sefcovic’s rejection of the UK’s demand to rewrite Northern Ireland trade rules , further stretching tension between the two over the protocol. EUR The Euro is down in early trading as traders digest the possibility of a left-leaning government in [...]
GBP Sterling rallied on Thursday following expectations that the Bank of England may raise interest rates sooner than expected in the first half of 2022 . The market’s optimism of a rate rise came following Governor Bailey’s comments before the treasury committee that the MPC’s last vote was a close call . The pound also benefitted from the recruitment and employment survey which highlighted staff shortages and pointed to future wage inflation , something the Bank of England will monitor closely . The release of UK GDP figures for July released this morning , although disappointing has [...]
GBP Sterling managed to recovery all the ground it lost throughout Wednesday after Bank of England Governor Andrew Bailey testified before the commons late in the afternoon . The pounds gains came after Bailey told the Treasury committee that MPC members were split 4-4 in August on whether “minimum necessary conditions were met to raise interest rates” . However Bailey warned that the UK’s recovery from the pandemic is slowing amid supply chain disruptions and staff shortages . Britain’s labour shortages were also highlighted by a survey from the Recruitment and Employment confederation which said employers are [...]
GBP Sterling remains under pressure in early trading after falling 0.4% against the dollar and 0.3% against the euro yesterday . The pound’s decline came despite comments from Bank of England policymaker Michael Saunders that the Central Bank may need to raise interest rates next year if growth continues and inflation shows signs of becoming more persistent . Saunders who last month voted for an early stop to the BOE’s £895 Bln bond buying stimulus plan , repeated his view that continued bond purchases risked increasing medium -term inflation expectations . Although expected , Sterling was pressured [...]
GBP Sterling remained range bound against both the dollar and euro in early trading . Brexit minister Lord Frost has announced the UK’s intent to extend post-Brexit grace periods on some goods imported to Northern Ireland . The move is expected to allow talks to continue with the EU aimed at resolving disputes between the two over the Northern Ireland protocol . There is currently a grace period and other easements being applied to aspects of the protocol , meaning only light controls are being placed on exports from the UK to Northern Ireland . Following a [...]
GBP Sterling remains unchanged since last week’s close in early trading against both the euro and dollar. Sterling gained around 0.2% against the dollar on Friday afternoon , after employment data from the US disappointed . Against the single currency , the pound stayed within the same range traded all last week . The Confederation of British Industry (CBI) has warned the government that a labour shortage crisis could delay economic recovery for up to 2 years . The leading business lobby said that since Covid restrictions began to ease earlier this year , allowing the economy [...]