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UK Pound

Showing results for: "UK Pound"

What a New Prime Minister Spells for the Pound’s Future

On Tuesday, 25 October, Rishi Sunak was sworn in as the new Prime Minister of the UK. The 42-year-old is the third UK PM in 7 weeks, replacing Liz Truss, who was PM for the whole of 44 days. Sunak comes at a time of great financial instability for the UK, with …

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Bank of English Stages Emergency Bond Buying as Pound Plunges 

Bank of English Stages Emergency Bond Buying as Pound Plunges  The Bank of England, UK’s Central Bank, has announced this week a temporary gilt-buying programme to urgently respond to a “material risk to UK financial stability” after the pound went into free fall after new prime minister Liz Truss announced tax cuts …

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Pound Freefall Prompts BoE Emergency Bond-Buying

The Bank of England, the UK’s Central Bank, has announced this week a temporary gilt-buying programme to urgently respond to a “material risk to UK financial stability”. This comes as gilt yields were on course for record highs as investors exited UK’s bonds after the government announced underfunded tax cuts and increased …

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Equity Markets Positive After Russia Mutiny Resolved

Geopolitical tensions eased following Prigozhin’s troops retreat from Moscow as both parties had reached consensus on certain deals. Political instability in Russia has abated as Prigozhin’s troops retreat from Moscow, leading to a positive response in equity markets, particularly the Nasdaq, which rose over 1%. Oil and gold prices declined as the …

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Stock Markets Slide As Russian Instability Continues

The geopolitical uncertainty saw gold rise slightly, while lending support to a crude oil market plagued by demand concerns Stock markets were rattled as the events over the weekend in Russia heightened geopolitical uncertainty. In a late-night televised speech, the Russian president condemned the leaders of the Wagner mercenaries as traitors, further …

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Russia Mutiny Spurs Risk-Off Sentiment

The rule of Russian President Vladimir Putin, is facing a significant challenge as the Wagner mercenary group advances towards Moscow. The rule of Russian President Vladimir Putin, who has held power for 23 years, is facing a significant challenge as the Wagner mercenary group advances towards Moscow. This development has caused concerns …

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BoE Surprises With 50 Bps Rate Hike

Hike expectations have also increased across other central banks as the focus shifts back to inflation Markets have increased the probability of the Federal Reserve raising interest rates, a sentiment also applied to other major central banks worldwide, including those of the U.K, Switzerland, and Norway. Furthermore, U.S. Treasury Secretary Janet Yellen …

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Powell Signals Higher Rates

On the first day of Jerome Powell’s two-day testimony before the House, the Federal Reserve Chair delivered a semi-annual monetary policy report. The equity markets and the dollar both experienced declines as Powell took a hawkish stance, stating that the central bank would need to raise interest rates further to curtail U.S. …

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Dollar Stands Pat Ahead Of Powell’s Testimony

Fed Chair Jerome Powell is due to give his twice-yearly testimony before congress today The market is exhibiting cautious sentiment as it edged lower in anticipation of Fed Chair Jerome Powell delivering his semi-annual monetary policy report before the House today (21st June). Investors closely scrutinise this two-day testimony to gain insights …

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Positive Talks Between Blinken And Xi Spur Hope For Equities

Additionally, China has announced its first reduction in the benchmark lending rate in 10 months, a move that could provide support for oil prices. Last night, the U.S. Secretary of State met with the Chinese President and expressed satisfaction with the accomplishments of their trip. This positive development in bilateral relations has …

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Blinken Potentially Meeting President Xi

Improved relationships between the US and China could potentially lead to the equities markets surging Equities in the U.S. contracted last Friday after a bullish run in the past week with Nasdaq up by more than 3%. Notably, U.S. Secretary of State Anthony Blinken’s visit to China, including meetings with top diplomats …

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Dollar Surrenders After Rate Pause Decision

Following the Federal Reserve’s decision to maintain the interest rate unchanged, equity markets responded positively, leading to upward movements, while the U.S. dollar experienced a significant decline of nearly 1% last night. On the other hand, Asian equities continue to gain, helped by the expectation of more stimulus from China. On top …

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Dollar Hammered By Weak PMI Data

The dollar’s value experienced a decline, falling below $104 following the release of disappointing U.S. service PMI data. The reading dropped from 51.9 to 50.3, prompting the market to reconsider the possibility of the Federal Reserve pausing its interest rate hike in June. Investors are currently awaiting the announcement from the Reserve …

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Debt Limit Bill Vote Passes The House

A Bipartisan Agreement To Suspend The Debt Ceiling Is Now Awaiting Approval From The U.S. Senate The House of Representatives has successfully passed a debt ceiling deal to prevent a potentially catastrophic event. However, the process is not yet complete as the bill now awaits approval from the Senate, where not all …

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Dollar Soars On Optimistic Debt Ceiling Deal

Markets Risk-on After Positive U.S. debt Ceiling Deal Boosted The Dollar The US Dollar continued its impressive rally, buoyed by the optimistic prospects of a tentative debt ceiling deal between President Joe Biden and top Republican Kevin McCarthy. The deal aims to avert a potentially catastrophic default, boosting investor sentiment. Concurrently, the …

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U.S. Debt Ceiling Remains At An Impasse

The Biden-McCarthy meeting on the debt-limit bill has yet to yield any deal to avert a catastrophic U.S. default, with U.S. Treasury secretary warning that the country will run out of cash in June. Market sentiment worsened as the White House has no more meetings planned; and gold prices have rebounded due …

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Biden-McCarthy Talks Productive

Both President Biden and the House Speaker claimed that yesterday’s meeting on the debt-limit bill has a productive outcome but both parties are yet to come to an agreement. Meanwhile, U.S. treasury secretary Janet Yellen, reiterated that the department will run out of cash in early June. The dollar index has strengthened …

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Biden Confident On Debt Ceiling Bill

President Biden is confident in reaching a bipartisan agreement with congressional leaders to elevate the debt ceiling, effectively averting an unprecedented default situation for the United States. This development has sparked a wave of optimism, prompting the dollar to trade higher, while the safe haven commodity gold languishes amid the surge in …

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Positive Progress On U.S. Debt Ceiling Bill

Investors are rotating out of gold en masse on optimism surrounding the U.S. avoiding a default Both President Biden and House Speaker Kevin McCarthy struck an optimistic tone regarding the prospects of reaching a consensus to raise the national debt ceiling and avert a potentially catastrophic default on the debt. As a …

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Share Markets Advance After NFP Release

The Non-Farm Payroll (NFP) reading was in line with expectations, showing a substantial increase from the previous reading of 165,000 to 253,000. This suggests that the job market in the United States remains strong, indicating a robust economy. The equity market responded positively to this economic data and closed higher, resulting in …

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Understanding What Indices Are And How To Trade Them

Indices trading can provide several benefits to traders, which includes allowing diversification of trade, access to multiple major markets and cost effectiveness. Find out exactly what indices trading is and how to trade indices in this comprehensive guide.  What Are Indices Indices are key indicators in the financial markets, serving as a …

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Fed Rate At The Highest Level Since 2007

The dollar has dipped on dovish expectations and downward pressure on the economy Federal Reserve Chairman Jerome Powell announced yesterday that the central bank would deliver its 10th consecutive interest-rate hike of 25 basis points, bringing the Fed rate to 5.25%, its highest level since 2007. Powell also hinted that the Fed …

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Investors Brace for Uncertainty Ahead of Key Economic Data

The U.S. is trading flat as the markets prepare for potential uncertainty ahead of GDP and inflation figures The King Dollar is trading flat as market participants prepare for potential uncertainties. The upcoming release of GDP figures, core PCE price index, and employment cost index are critical for global investors. Meanwhile, the …

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Asian Shares Dip Amid Cautious Trading

The VIX dipped to its lowest level in over a year as equities trade sideways ahead of the Fed interest rate decision Asian shares traded lower, and U.S. equity futures fell as investors remained cautious after Wall Street closed with little change. The CBOE VIX volatility index hit its lowest level in …

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Dollar Struggles as Investors Remain Sceptical of Fed’s Hawkish Tone

The US Dollar continues to struggle as uncertainty over US monetary policy lingers in the global financial market. Despite hawkish comments from Atlanta Fed President Raphael Bostic and James Bullard regarding the need for rate hikes to combat inflation, market participants remain sceptical as the recent inflation data from the US region …

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Rate Hike Expectations Falter as PPI Plummets. 

The US Producer Price Index came in lower than expected The US Federal Reserve’s rate hike expectations have continued to wane amid a flurry of lacklustre economic data. The latest blow to inflationary pressures came from the Producer Price Index (PPI) released by the Bureau of Labor Statistics, which displayed a significant …

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US Dollar Dips as Inflation Falls Short. 

US Treasury yields and the Greenback dipped as investors recalibrated their expectations for rate hikes following the release of March’s Consumer Price Index (CPI), which came in below the market consensus. This unexpected dip in inflation triggered a surge in the prices of non-yielding assets such as gold and crude oil, as …

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Markets Calm Before Inflation Data

Economists project the upcoming U.S. CPI figures will galvanise the markets in either direction depending on its performance U.S. equity markets have traded in low volatility for the past few sessions, but economists project the lull period will be broken after the U.S. CPI is released later today. A softer reading from …

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Equities Market Edge Higher as Risk-On Sentiment Escalates

The market has a higher risk tolerance, with U.S. equity markets edging higher and the dollar extending its gain for the 2nd straight session. On the other hand, notwithstanding a dovish stance from the newly appointed BoJ governor, economists projected that the ultra-loose monetary policy is unsustainable with the rising inflation in …

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Markets Steady Ahead of NonFarm Payroll.

Most of the asset classes were muted ahead of the Nonfarm Payroll report which will be released today; Markets seemed confused and contradictory between asset classes with the backdrop of high inflation and recession fears. Assets class, including equity markets, the U.S. dollar, gold, stayed flat on Thursday amid directionless trading. On …

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Is a Recession Looming?

Recession fears have escalated in the markets, especially after the ADP Nonfarm payroll was released yesterday. The dollar index traded higher, and gold prices poised at a yearly high as safe-haven assets are being sought after by investors amid a recession looming with a lower-than-expected U.S. job report. On top of that, …

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Stock Markets Mixed On Concerns Over Oil Inflation Risk

OPEC+’s surprise production cut has roiled Asian the equity markets U.S. equity markets continue to be bullish, with market sentiment continuing upwards after the banking sector woes. Asian markets saw mixed performance due to inflationary worry after a surprise move from OPEC+. The oil cartel further cut production by more than 1 …

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Oil Prices Surges With OPEC+ Surprise Supply Cuts 

Oil prices surged by more than 8%, with WTI crude trading above $81 for the first time since January after an unexpected announcement from OPEC+ to cut crude supply to tighten the market. The oil allies announced cutting more than 1 million barrels of oil per day, with Saudi Arabia leading the …

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Global Markets Maintain Risk-On Sentiment in Anticipation of Key PCE Reports

China’s economic performance continues to astound global markets as the latest Purchasing Managers’ Index (PMI) data revealed that the service sector activity in the country surged to its fastest pace in 12 years in March. Such sentiment has sparked optimism for the antipodean currencies, which are closely linked to China’s economy. The …

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Tech Shares Push Wall Street Higher

Wall Street rallied following the footstep of Asian equity markets last night, pushed by tech shares as concerns over the stability of the financial system continue to ease. An increasing risk-on attitude has also muted the gold prices and the U.S. dollar while U.S. treasuries yield stays flat. Before the RBA announces …

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China Equity Market Rallies with Alibaba Revamp

Chinese stock indices, including the Hang Seng Index, rallied as Alibaba said it would split the company into 6 units that would potentially be listed individually. This reflects a loosening attitude from the Chinese government toward the technology companies after the long crackdown from Beijing. On the other hand, the fresh Australian …

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Markets Get Relief From Banking Turmoil

The banking crisis was seemingly resolved after yesterday’s news reported that First Citizens Bancshares Inc agreed to buy Silicon Valley Bank. On top of that, the U.S. authorities are considering expanding its emergency lending facilities for banks to shore up the bank’s balance sheet, which in a way supports the embattled First …

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Markets Put Less Weight On Banking Crisis

Focus has shifted back to inflation and interest rates as the banking crisis shows signs of easing Equity markets advanced and major currencies fluctuated in narrow ranges in the last session. Easing in the banking crisis and perceived lower risk of recession spurred the equity market to trade higher while modest rate …

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Equities Markets Slide as Banking Sector Concern Still Intact. 

Wall Street was hindered by the banking sector and slumped after investors digested the comment from Janet Yellen, U.S. Treasury Secretary on Wednesday’s hearing. However, Yellen attempted to alleviate market concerns during a subsequent hearing on Thursday, promising that policymakers would take further action to safeguard bank deposits if necessary. Meanwhile, Japan’s …

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Fed is not Pausing Rate Hike

Jerome Powell delivered a smaller size of rate hike of 25 bps which is in line with the market consensus; however, the market was hit by double assail with U.S. major indexes dropping by more than 1% and the dollar traded below $103. Firstly, Powell revealed that the Fed considered pausing the …

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Markets Risk-on Ahead of Fed’s Interest Rate Decision

Wall Street closed high and gold prices retraced as the fears over the banking sector crisis abated; the dollar index remains calm before the Fed’s interest rate decision announcement, which will be made later today (22nd March). However, investors are starting to discuss the banking turmoil as aftermath of central banks’ frenetic …

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CPI数据左右美联储加息决策?

市场须知 尽管美国政府宣布采取措施进一步遏制系统性风险并维护市场信心,但硅谷银行的影响继续在全球金融市场引起反响。股市在这个不确定时期表现平淡,而投资者对避险资产的兴趣增加,并推动金价在一个月内首次突破 1900 美元。今天发布的 CPI 数据对美联储至关重要,高读数将使美联储在金融不稳定时期是否加息陷入困境。另一方面,澳大利亚的商业信心数据滑入负面区域,增加了澳洲联储可能考虑暂停其货币政策紧缩计划的可能性。此外,尽管欧佩克和国际能源署对石油需求前景持乐观态度,但油价仍受美国银行业危机冲击,​​在过去 5 个交易日下跌超过 8%。 市场看点 当前对 3 月 22 日美联储利率决定的加息押注: 25个基点 (23.2%) 对比 50 个基点 (76.8%) 市场概括 财经日历 市场走势 美元指数 硅谷银行(Silicon Valley Bank)和签名银行(Signature Bank)的倒闭给整个金融行业带来了冲击波,导致投资者大幅调整了他们对美联储(Federal Reserve)即将出台的利率决定的预期。因此,许多人涌向安全的政府债券,推高债券价格,促使两年期美国国债收益率创下2008年全球金融危机以来的最大单日跌幅。该市场动荡也对美元产生了重大影响,美国国债收益率下降消弱美元需求量。 美元指数正在走低,目前正在测试支撑位。然而,MACD指标显示看涨势头增强,而相对强弱指数(RSI)在41,这表明该指数短期内将因技术回调而走高。 阻力位:104.15,105.10 支撑位:103.65,102.85 黄金/美元 随着投资者在市场动荡中寻求更安全资产,黄金和白银价格上涨,反映出对这些贵金属的需求增加。市场将继续充满不确定性和波动性,这使得投资者对自己的投资组合保持谨慎和长期眼光变得比以往任何时候都更加重要。最终,投资者应该关注美联储如何解决近期动荡问题,以获得更多交易信号。 黄金价格突破阻力位后走高。然而,MACD指标显示看涨势头减弱,而相对强弱指数(RSI)在89,表明大宗商品可能进入超买区域。 阻力位:1925.00,1955.00 支撑位:1990.00,1885.00 欧元/美元 在美元从月度低点反弹并小幅反弹后,欧元的涨势停止。硅谷银行 (SVB) 关门事件继续引发反响,这打压了美元,因为在美国银行业危机中美联储可能不会推出更高利率的预期更高。投资者还对溢出效应可能蔓延至欧元区持谨慎态度,该经济集团中有 SVB 利益相关者。尽管在金融市场不确定性的背景下加息 50 个基点的预期有所下降,但投资者现在关注的是今天公布的美国通胀数据。 技术面上,由于 RSI 未能突破超买区域而 MACD 仍处于上升趋势中,欧元的看涨动能减弱。 阻力位:1.0797 …

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美国银行危机拖垮市场

市场须知 华尔街因担心美国银行业而暴跌,情绪已蔓延至亚洲金融股。尽管 Silvergate 银行在决定结束其业务并清算其资产后倒闭,但 SVB 金融集团的流动性问题使事情变得更糟。由于证券投资组合损失和风险资本存款减少,这家总部位于硅谷的银行推出了股票销售以支撑其资产负债表。加密货币也正面临逆风,BTC 因 Silvergate 银行倒闭以及美联储加息等宏观经济因素承压,隔夜暴跌 8% 以上。在其他方面,在中国经济数据显示这世界最大石油进口国的经济复苏弱于预期后,油价小幅走低。 市场看点 当前对 3 月 22 日美联储利率决定的加息押注: 25个基点 (44.3%) 对比 50 个基点 (55.7%) 市场概括 财经日历 市场走势 美元指数 在非农就业数据公布前夕,美元下跌。昨日,有数据显示,美国首次申请失业救济人数激增,超出了市场预期,促使投资者预计,即劳动力市场走软可能降低美联储(fed)再次加速加息的可能性。根据美国劳工部的数据,截至3月4日当周,美国首次申请失业救济人数增加2.1万人,经季节调整后为21.1万人,低于经济学家预测的19.5万人。市场目前正在等待周五的非农就业数据,经济学家预计2月份就业人数将增加20.5万人,明显低于1月份的51.7万人。 美元指数正在走低,目前正在测试支撑位。MACD显示看跌势头减弱,而相对强弱指数(RSI)在40,这表明随着相对强弱指数(RSI)从超卖区域反弹,该指数可能会走高。 阻力位:105.80,106.25 支撑位:105.05,104.25 黄金/美元 黄金价格飙升,因为有报告显示,世界各国央行继续大量囤积黄金作为储备。世界黄金协会(World Gold Council)的最新数据显示,各国央行1月份黄金储备净增77吨,较去年12月增长了192%。面对地缘政治的不确定性和不断升级的通胀,各国央行选择以更快的速度增持黄金,这并不令人意外。与此同时,投资者正密切关注美国就业数据,以寻找进一步的交易信号。作为对冲经济不确定性的工具,黄金继续吸引大量关注。 黄金价格走高,目前正在测试阻力位。然而,MACD指标显示看涨势头减弱,而相对强弱指数(RSI)位于60,这表明,由于相对强弱指数(RSI)从超买区域回落,金价可能会随着技术回调而走低。 阻力位:1830.00,1845.00 支撑位:1820.00,1805.00 欧元/美元 在上周初美元走强后,欧元连续第二天反弹。在昨天公布初请失业金人数后,美元从其看涨势头中缓和下来。该数据高于市场预期,来到 21万1千,也高于前值 的19万。该数据间接暗示美国失业率可能更高,美联储可能会考虑加息日期。投资者可能会密切关注非农就业数据,该数据定于今天晚些时候发布,以衡量美联储下一步的货币政策举措。 在技​​术方面,指标给出了该货币对的反转信号,RSI 从超卖水平上方强劲反弹至 50,而 MACD 线已与零线下方的信号线收敛。 阻力位:  1.0698, 1.0822 支撑位:1.0613, 1.0540 …

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What Are Bonds And How Do They Work

What Are Bonds? A bond is a type of loan in which a bondholder lends money to a company or government. The borrower pays interest periodically until a specified date in the future when repaying the original loan amount. The final amount that the bond issuer repays to the bondholder is called …

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U.S. Midterm Elections Ahead

What You Need to Know Asian markets are on the upsurge, especially the Hong Kong market, which climbed more than 11% in November. The Sterling will suffer as the BoE has turned its focus from inflation to saving its negative economic outlook, which will drive the market to sell off more pounds. …

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U.S. Shares Tumble on Hawkish Fed Signals

On Wednesday, 2 November, the US Federal Reserve implemented its fourth mega hike, raising interest rates by 75 basis points, or 0.75%, in its continuing fight against high inflation. This brings the current Fed’s benchmark rate to 3.75% – 4%, with rates expected to hit a ceiling at 4.5% – 4.75% in …

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Gold Remains Downbeat as Treasury Yields Hit Decade High

Recession fears are plaguing the markets more strongly than ever. On Wednesday, US Treasury yields hit a 14-year high, with the 10-year note hitting as high as 4.153% as of writing – the highest since 2008’s recession. Meanwhile, the 2-year yield rose by 13 basis points to 4.57%. More importantly, the 3-month …

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More U-turns Foreseen From Bank of England

UK Chancellor of the Exchequer Kwasi Kwarteng made an unprecedentedly dramatic early exit from an International Monetary Fund event in Washington on Friday, with many thinking it was to return to the UK to prepare his fiscal plan. Turns out, Kwarteng was being asked to leave his post by UK Prime Minister …

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Currencies Hit Record Levels Against USD

As risk appetites move ever lower and the US dollar soars, sovereign currencies are seeing the effects of global economic uncertainty. The pound has hit a record low against the greenback after the UK government introduced a new stimulus package just after the appointment of conservative party candidate Liz Truss as Prime …

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Cooling US CPI Numbers Give Hope for Soft Landing 

On Tuesday evening (GMT+3), the US Consumer Price Index (CPI) for July was released, showing a year-on-year growth of 8.5% – lower than the expected growth of 8.7% and the previous month’s increase of 9.1%. Core CPI, which excludes volatile categories like food and energy, comes in at an increase of 0.3% …

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US ADP Nonfarm Data Points To Half-Point Rate Hike

On Wednesday afternoon March 30 (GMT+3), the US ADP Nonfarm Employment Change data reported an increase in 455,000 jobs. This figure is slightyly more than the expected increase of 450,000, and down from the previous month’s value of 486,000. While higher than expected, March’s ADP Employment numbers are still the lowest seen …

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Gold Steadies as Fed Increases Interest Rate By Expected 0.25%

On Wednesday, 16 March, the US Federal Reserve made the long-awaited decision to raise interest rates to combat surging inflation. As per the market’s expectations, the Fed raised rates by 25 basis points. The 0.25% rate hike was voted on almost unanimously by policymakers, except St Louis Fed president James Bullard, who voted …

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What is currency

Currency, or foreign exchange, often abbreviated as forex or simply FX, refers to the exchange of global currencies on a decentralised market place – also known as over the counter (OTC) currency exchange. The foreign exchange market is the largest and most liquid market in the world, with an average daily trading …

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