The Pound put in a jaded performance yesterday. There were ups, there were downs. But generally speaking Sterling traded with a neutral bias ahead of this morning’s UK CPI report. Markets anticipate another month of stagnant yearly price pressures – not particularly exciting – but spirits could be roused somewhat if the inflation index prints above zero. On the other side of the coin, the journey could prove even worse for the Pound exchange rate if the CPI report shows that Britain has already slipped into disinflation.
Sterling could soften …

The Pound exchange rate performed well again yesterday as markets reacted to some better-than-expected UK industrial output data. Beating estimates of 0.1%, the yearly industrial production figure for March came in at a six-month high of 0.7% thanks to a surprise uptick in oil and gas extraction. Manufacturing output also beat the market consensus with a print of 1.1% compared to forecasts of 1.0%. All in all the robust industrial data is not expected to bring about an upgrade to the first quarter’s GDP print of 0.3%, however, the National …

GBP’s post-election rally continued yesterday as traders turned their attention to Wednesday’s quarterly inflation report from the Bank of England. As expected, the UK central bank announced yesterday that it was not to raise interest rates in May. The BoE has now maintained an ultra-low benchmark borrowing rate of 0.50% for over six years. However, recent remarks from policymakers suggest that officials at the bank anticipate a surge in price pressures in the second half of the year, and subsequently it is possible that Wednesday’s inflation report will hint at …

GBP exchange rate was stronger against the Euro and several other major peers as the currency continued to receive support from Friday’s surprise general election result. Prime Minister David Cameron’s announcement on Sunday that Scotland will not be given another independence referendum eased market fears over a breakup of the UK. Investors will now be looking ahead to the release of the latest Bank of England quantitative easing and interest rate decisions.
US Dollar
The US Dollar firmed against most major peers as investors favoured the safe haven currency on …

The Pound exchange rate strengthened against the Euro on Friday as it became clear that the Conservatives were on course to form the next UK government. Against the US Dollar, the Pound surged to its best level since 2009. The vote saw the Liberal Democrats decimated while the Labour Party performed worse than predicted. Domestic house price data also offered support as prices were shown to have risen strongly in April. If it is confirmed that the Conservatives will be able to form a majority government, we could see Sterling …

The Pound exchange rate weakened sharply to the 1.33 level against the Euro and fell against its other major peers as investors focused upon the general election. The vote is set to be the most unpredictable in decades and with the outcome far from certain, the markets are concerned over potential political uncertainty negatively influencing the UK economy.
US Dollar
The US Dollar was stronger against the weakened Pound, but was trading at a 2-month low against the Euro and was weaker against most other major peers. The ‘Greenback’ remained under …

The Pound Sterling softened against the Euro after news broke that Greece met the deadline for repaying €200 million to the International Monetary Fund (IMF). The UK currency was also under pressure from expectations that today’s UK Services PMI will come in below expectations. Against the US Dollar, the Pound held gains as poor trade data weighed on the ‘Greenback’.
The US Dollar remained under pressure against the majority of its peers due to Tuesday’s mixed data releases. According to the Washington-based Commerce Department, the US trade deficit widened …