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Demand for the Pound surged in the wake of the Bank of England’s (BoE) interest rate decision, with policymakers unexpectedly split on the matter. Known hawk Kristin Forbes voted for an immediate 25bpt rate hike, raising hopes that the Bank could shift from its neutral outlook sooner than anticipated. This optimistic view was cemented by [...]

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US Dollar Volatility Expected on Fed Comments

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Date: March 15th, 2017.

Growth in UK average weekly earnings were found to have slowed further than forecast in the three months to January, clocking in at 2.2% rather than 2.6%. This disappointing showing suggests that consumers are likely to experience a greater squeeze in the coming months. With inflation expected to continue to pick up for some time [...]

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Sterling remained under pressure in the wake of an unexpectedly weak UK Services PMI, which showed that the sector had performed more weakly than expected in February. As UK economic growth has been almost exclusively driven by the service sector in recent months, this disappointment naturally encouraged investors to continue to sell out of the [...]

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The Pound Euro exchange rate is advancing, although gains remain muted and Sterling is on poor form against many of its other peers. The latest UK data has been mixed, with Markit’s manufacturing PMI for February falling further-than expected. Analysts held a consensus view that the index would drop from 55.9 to 55.6, but it [...]

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The Pound Euro exchange rate hit its highest level in 2017 at the beginning of today’s session as traders expected positive GDP figures for the final quarter of 2016. However, Sterling quickly retreated from that level once the data was released. Although quarter-on-quarter growth was revised higher to 0.7%, year-on-year growth was revised lower to [...]

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Sterling suffered a disappointment when January’s consumer price index failed to show as strong an uptick in inflationary pressure as forecast. This undermined investors’ hopes that the Bank of England (BoE) could be prompted to tighten monetary policy sooner rather than later, leaving the Pound with little in the way of support. Brexit-based jitters could [...]

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The first Bank of England (BoE) policy meeting of 2017 did not offer much encouragement for the Pound, even though policymakers raised their growth forecasts for the coming year. Markets were not particularly impressed to find that the Monetary Policy Committee (MPC) had continued to vote unanimously in favour of maintaining its current level of [...]

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As the government’s Article 50 bill entered Parliament, sentiment towards the Pound saw some sharp moves, with investors jittery that the bill could pass without any significant amendments. Even so, the increased clarity over Theresa May’s timetable for starting formal exit proceedings offered encouragement to Sterling, particularly given the promise of a white paper on [...]

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Supreme Court Ruling Triggered Pound Volatility

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Date: January 25th, 2017.

The much anticipated Supreme Court ruling on the Article 50 case ultimately prompted Sterling to weaken, in spite of the verdict upholding the judgement that an Act of Parliament is required to begin formal exit proceedings from the EU. This less favourable market reaction was prompted by concerns that a second Scottish independence referendum could [...]

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Pound exchange rates slumped sharply at the start of the week after reports emerged that the government was not looking to maintain membership of the single market in negotiations with the EU. However, this downtrend was soon reversed when Theresa May set out her broad aims for Brexit in her first major speech on the [...]

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