Pounds attempt to takeout the floor of its nearly monthly long consolidation proved short lived with GBPUSD recouping its losses for the day in US trading. With an FOMC meeting tomorrow and a BoE rate decision on the 20th we are skeptical about prospects for any change in the equilibrium levels. Note however that Fed…
With recent UK data suggesting cooling in the jobs market, Friday’s blowout figure in NFP and stronger than expected wage data suggests a close look will be needed for the British Pound. With the ECB already taking its first rate cut the past week, divergence between US and UK monetary policy will likely be taking…
Cable saw a modest bounce Thursday following its sharp sell-off on hawkish talk for the US the day prior. We have little to watch out for out of the UK today though US Personal Consumption Expenditure data is worth keeping an eye on given that it is actually the Fed’s preferred gauge of inflation given…
Cable has been riding the wave of reassessment over rate cut speculations following last Wednesdays stronger than expected CPI read at 2.3%. This was reinforced by signs of a recovery in manufacturing with the Flash PMI at 51.3 above the 50 neutral point. From expectations of a rate cut in June market is now pricing…
A stronger than expected read in UK CPI at 2.3% against a 2.1% consensus from 3.2% previously saw Cable pop up. From pricing in a rate cut in June market has had to consider the possibility of none action leading to the move up that eventually faltered. News across the pond suggests the Fed will…
The British Pound saw a brief peak above 1.27094 against the Dollar before spending the rest of Monday in its earlier consolidation zone. We have little to watch out for as potential catalyst to drive Cable with mostly jaw boning from FOMC members and the BoE’s Andrew Bailey at 1700GMT. Next key data for the…
With yesterday’s US data, we may now have the BoE and the Fed vying for the dubious honor of cutting interest rates first, starting an easing cycle among the major Central Banks. Ahead we have little in the calendar that could potentially turn the current rally. With two more days of trading still, we see…
We were surprised by Cable’s ability to hold on to gains and the extent of yesterdays move given the lack of impetus. Ahead we have numbers from both the UK and the US though of immediate concern for us will be the Claimant Count Change data at 0600GMT as a strong read here and hints…
After initial responses to the 0-2-7 vote of the Bank of England’s Monetary Policy Committee saw Cable selling off, weakness in US numbers quickly turned things in GBPUSD’s favor last Thursday though we failed to see a follow through to the rally. At this point market is focused on the US CPI release Wednesday to…
The immediate response for the Bank of England’s vote to hold steady and clear shift to a dovish stance in the breakdown saw the British Pound losing ground only to see a big bounce on weakness in the US weekly claimant data. While the change in policy bias for the BoE is clear absent any…