Currency Note


USD: Strong data paints positive picture of US economy

The dollar recovered slightly yesterday after several data releases painted a positive picture of the US economy. Retail sales increased 0.3% last month. Data for November was also revised upward to show retail sales gaining 0.3% instead of rising 0.2%, as previously...

GBP: Sterling strong despite rate cut speculation

Sterling strengthened yesterday, shrugging off increasing expectations of an interest rate cut. The markets are looking ahead to retail sales data, which is due to be released this morning. This could give further indication about whether we should expect a rate cut...

EUR: ECB sees ‘initial signs of stabilisation’

The European Central Bank’s Governing Council gave euro a lift earlier yesterday, cautiously optimistic over the future. They said that there are some ‘initial signs’ that the economy is undergoing ‘stabilisation’, with the potential for industrial slump to begin to...

Pound up ahead of retail sales figures

The pound has started today up against the euro, with positive retail sales forecast for later today. There was a slight drop earlier yesterday, as euro reacted positively to a relatively harmonious ECB meeting, with little sign of previous disagreements. Positive...

USD: Dollar weakens before signing of trade deal

Phase one of the US-China trade deal was finally signed yesterday, and the dollar weakened as a result. The overall reaction from currencies was fairly muted since the signing has been expected for a long time and it is just the beginning of a larger deal that needs...

EUR: Euro mixed after poor data

The euro was strong against the pound and the dollar yesterday, reaching a one week high against the greenback ahead of the signing of the US-China trade deal. However, it is slightly weaker this morning. Economic data showed that the Eurozone trade surplus widened to...

GBP: Pound strong despite poor inflation rate

Sterling weakened yesterday after data showed that UK inflation rose at its weakest rate in three years. Inflation rate slowed to 1.3% year-on-year in December 2019, the lowest reading since November 2016 and below market consensus of 1.5%. However, the pound has...

Poor inflation data raises rate cut expectations

The pound was weaker yesterday after poor inflation rate data, which further increased expectations of an interest rate cut at the end of the month. However, it has recovered slightly this morning. The eurozone also saw some disappointing data, whilst the signing of...

Economics to the fore

The pound has been moving in the past few days because of speculation about an interest rate cut. This is all feels rather old-school, a bit 2015, as politics and Brexit has been leading GBP in recent times. The next big thing to influence currencies will be a mix of...

USD: US-China deal due to be signed today

The dollar was mixed yesterday, showing strength against the euro and weakness against the pound. Inflation rate for the US rose to 2.3% year-on-year from the previous 2.1%. A series of data releases are due to be released today also, including mortgage rate figures....

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