Investors eye today’s BoE rate decision

GBP
Today’s BoE interest rate decision today will serve as the focus for investors. Rates are widely expected to remain at 0.5% so traders will look at the MPC rate statement which is more focused upon the future. However, rocketing inflation and a lack of growth in the UK economy does point to a slim chance [...]

Sterling slides against euro and dollar as Osborne increases bank levy

GBP
Sterling made losses against all but one of its 16 most traded counterparts on Tuesday after George Osborne increased the tax levy on banks, triggering stop loss orders as investor sentiment took a hit.
This extra levy will raise 800 million pounds as Britain’s government tries to plug a record budget deficit. The pound ended the [...]

Risk assets bounce back as markets shake off Egypt worries

Risk assets rebounded as markets ignored Egypt and fears over the European periphery fade, while the dollar held surprisingly well. Although the situation in Egypt remains unresolved, and it is not clear whether popular anger will be assuaged by the latest US-backed plan to replace Mubarak with his vice president, investors focused on continued positive [...]

Euro retreats as Trichet dampens rate hike expectations; UK service sector expands

GBP
Sterling’s gains on the dollar were cut back Thursday in a move largely driven by a sudden drop in the eruo after the ECB’s Trichet dampened expectations of a Eurozone rate hike.
Trichet’s comments, which came after the ECB’s decision to keep interest rates at a record low 1 percent as expected, disappointed investors who had [...]

Sterling continues to rise; markets eye ECB rate

GBP
Sterling continues its run, rising to its highest level in three months against the dollar and rose against the euro too, with upbeat data and hawkish central bank comments fuelling speculation over an interest rate rise.
The British construction sector recovered in January after poor weather conditions dampened activity in the previous month, a survey by [...]

Sterling rises against dollar as rate hike speculation continues

GBP
Sterling was a major beneficiary of the euro’s rebound yesterday, following in its footsteps as it rose against the dollar. It was lifted by Eurozone inflation data and comments from BoE policy maker Martin Weale, which caused speculation that a rate hike in both the EU and the UK will come sooner rather than later.
Sterling [...]

Unrest in the Middle East grabs markets’ attention; dollar, gold, oil rally, stocks sell off

European newsflow improved somewhat at the start of the week, allowing stocks to break new highs in this cycle. However, the Tunisian unrest spreading to Egypt caused markets to send the dollar, precious metals and oil prices higher as stocks lowered. The consensus that has developed around emerging market economic and financial outperformance did not [...]

Sterling finds support as rate hike expectations take hold

GBP
Sterling made gains against the dollar Thursday, finding support from broadly-held expectations that the Bank of England will raise interest rates by mind-year, helped by a general dollar weakness.
The pound also jumped against the yen, which was sold off after ratings agency Standard & Poor’s cut Japan’s sovereign debt rating by one notch to [...]

S&P downgrades Japan’s debt rating to AA-

GBP
The pound was boosted Wednesday after Bank of England minutes showed that policymakers had considered a rate hike during this month’s policy meeting. Committee member Martin Weale made an unexpected move to Andrew Sentance’s stance, voting for a quarter-point rate rise, prompting a possible 0.75% rate in the coming months.

USD
The dollar was generally weaker on [...]

Poor UK GDP figures and gloomy King send sterling tumbling

GDP
Shock contraction figures sent sterling tumbling to a two-and-a-half month low against the euro on Tuesday, causing investors to scale back expectations of an interest rate rise in the coming months.
Britain’s economy shrank 0.5 percent in the last three months of 2010, confounding forecasts for a 0.5 percent expansion and prompting warnings of a tough [...]