The US dollar finished yesterday on a firmer footing all round. Part of that is the continuing risk off mode and part the data. The US flash composite PMI at 51.4 was weaker than last month, but the…
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The euro was also a shade softer against the dollar yesterday. Europe’s big complication is the same one it always has in an energy shock: high import exposure, and not a huge growth buffer. Eurostat’s 0.2% quarterly GDP…
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Sterling weakened yesterday as the UK’s flash PMI cooled sharply. A composite PMI of 51.0 isn’t a disaster, but it’s a world away from February’s 53.7, and markets will see this sudden drop as a warning shot. The…
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The past 24 hours have seen more worrying signs for the UK economy. The pound has looked like a softly deflating tyre this week against both the US dollar and the euro, with the dollar firmer across the…
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President Trump lived up to his nickname yesterday. After threatening to obliterate the Iranian energy system, he instead revealed progress in peace talks. That cost the US dollar some ground it had previously gained in the race to…
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German chancellor Friedrich Merz said he was ‘hopeful’ of a deal to end hostilities in the Middle East soon. Most of Europe surely shared that feeling, given the eurozone’s acute exposure to high energy costs. In the here…
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Up until about 11am on Monday, some experts had been predicting the Bank of England would have to raise interest rates to almost 5% to contain the impact of the oil shock. That changed in the course of…
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There was quite a change in mood within currency markets on Monday. A day that began with apprehension over President Trump’s 48-hour ultimatum ended with relief, as he suddenly announced a five-day pause in strikes against Iranian energy…
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