Although the Pound was initially bolstered as Federal Reserve interest rate hike expectations were pushed back following last week’s FOMC policy meeting, the BP exchange rate has since recorded widespread losses as a result of bets that the Bank of England (BoE) won’t take action before the Fed. With no UK data to stem the flow of losses, the Pound fell against peers like the Euro, US Dollar and Australian Dollar. Today’s UK BBA Loans for House Purchase report could have a modest impact on Pound trading.
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After hitting a one-month high of over 1.38, the GBP/EUR exchange rate tumbled back to 1.37 before the close of Tuesday’s European session. Demand for the Pound ebbed as UK public finance data provided cause for concern and Sterling also lost ground against a number of its other most traded currency counterparts. With UK data lacking this week further Sterling movement may be limited.
Euro
Although the Volkswagen scandal had a damaging impact on the company’s shares and could spell trouble for the fortunes of the Eurozone’s largest economy, the …

It was a fairly quiet day on financial markets yesterday as traders geared up for the main event later on in the week – the Federal Reserve’s long-awaited September interest rate decision.
However, there is one piece of key British data due for release today and that’s August’s CPI report. The majority of market players expect the headline inflation rate to slow from 0.1% to 0.0%, which could soften demand for the Pound as it would likely be seen as a sign that inflation prospects are not strong enough to warrant …

After Japanese company Mitsui Sumitomo announced plans to take over the British insurance firm Amlin, in a deal reportedly worth 3.5 billion Pounds, Sterling extended Monday’s gains against peers like the Euro and US Dollar. If this morning’s UK Manufacturing and Industrial Production figures print positively, the Pound could push higher still ahead of tomorrow’s Bank of England (BoE) interest rate decision.
Euro
Although the Eurozone’s second quarter growth data revealed a stronger-than-anticipated rate of quarterly and annual expansion in the three months through June, the Euro failed to exert …

The Pound remained at elevated levels against most of the majors yesterday as Tuesday’s sturdy second quarter UK GDP report continued to bolster demand. Sterling also garnered support following the release of mortgage data yesterday showing that loans for house purchases increased by the most in almost seven years in June. The 66,582 surge in mortgage approvals reflects renewed confidence in the housing market following the Conservative’s election victory in May, which prevented Labour laying out new measures to tax big spend house purchases.
Other than the GfK consumer confidence …

The Pound got off to a slow start against the majors yesterday but demand grew during the afternoon ahead of this morning’s UK GDP report. The data due for release from the Office for National Statistics (ONS) is tipped to show an encouraging acceleration of economic activity in the second quarter. British GDP printed at 0.4% in Q1 but markets anticipate a much better score of 0.7% for Q2. The report is likely to have a significant impact on sentiment towards Sterling this week as a soft figure could potentially …