The euro has been steadier than sterling, helped by an ECB that looks comfortable holding rates where they are. The key detail is inflation: January’s drop below target strengthens the argument that policy can stay on a long…
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Sterling didn’t just drift lower this week. It dropped a gear. The BoE’s hold was one thing, but the market is suddenly less willing to assume calm politics and clean decision-making in Westminster. After all the political froth…
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It was all about the central banks yesterday, even though they sat on their hands. The currency markets were quick to move nonetheless. Sterling took the harder knock. Since its surge upwards on Wednesday lunchtime it’s slipped by…
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The dollar has held its post-nomination gains as investors assess what Kevin Warsh might mean for monetary policy. Some see a safe pair of hands who will preserve the Fed’s independence; others warn his hawkish past could slow…
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January’s inflation reading of 1.7% puts the eurozone firmly back on the ECB’s home turf. Core prices fell to their lowest since late 2021. While services inflation remains sticky at 3.2%, the broader trend gives Christine Lagarde room…
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The spotlight falls squarely on Threadneedle Street at midday. Most expect rates to stay at 3.75%, with external MPC members Alan Taylor and Swati Dhingra likely to push for a cut. The accompanying Monetary Policy Report will update…
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The pound is steady this morning ahead of what promises to be a consequential 48 hours for currency markets. The Bank of England announces its first interest rate decision of the year at noon, followed by the European…
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With most people looking ahead to the Bank of England’s (BoE) interest rate decision tomorrow lunchtime, the sterling to euro rate has very quietly advanced to its strongest level so far this year. That is unlikely to last…
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