Sterling fell broadly today after UK’s February CPI came in slightly below expectations. However, the selloff has been contained, with markets still expecting the BoE to proceed cautiously with policy easing. In particular, services inflation remained sticky at 5%, signaling that underlying price pressures are not abating as quickly as hoped. Some economists argue that […]
Financial markets entered Tuesday on a subdued note, with the Asian session notably quiet. While US stocks managed a rebound overnight on speculation that the April 2 “Liberation Day” tariff rollout might be narrower in scope than initially feared, sentiment failed to fully carry into Asia. Equity indices across the region were mixed, reflecting ongoing
The Pound Sterling declines to near 1.2920 against the US Dollar as the Fed is not in a rush to move to interest rate cuts. The Fed sees high uncertainty over the US economic outlook amid new policies from US President Trump. BoE Bailey is confident that interest rates are on a gradually declining path.
Sterling is trading slightly firmer today, though it struggles against the rebounding Dollar and Yen. BoE’s rate decision leaned slightly more hawkish than expected, with only one member of the MPC, the known dove Swati Dhingra, voting for a rate cut. The rest supported keeping rates on hold. The overall tone of the statement remained
The Bank of England (BoE) kept its policy rate unchanged at 4.50% in its March meeting, as widely anticipated. However, the decision wasn’t unanimous — while eight policymakers backed the hold, just one (Swati Dhingra) pushed for a 25 basis point cut. BoE policy statement takeaways Policy statement keeps phrase: “A gradual and careful approach to
Asian markets are showing signs of mild risk-off sentiment today, with Hong Kong and China stocks retreating from recent gains. The weaker regional tone contributed to a stronger Yen. Additionally, Yen’s rebound is also fueled by post-FOMC Dollar softness. The technical picture suggests that the recent pullback in Yen against Dollar has likely run its
The Greenback managed to regain some balance and set aside three consecutive daily pullbacks after the Fed maintained its interest rates at its meeting, as widely anticipated. Here is what you need to know on Thursday, March 20: The US Dollar Index (DXY) regain some buying traction and bounced off the area of multi-month lows
Asian markets opened the week on a positive note, buoyed by stronger-than-expected economic data from China and optimism surrounding Beijing’s latest efforts to boost domestic consumption. Investors welcomed China’s “special action plan” aimed at stimulating household spending, which aligns with Premier Li Qiang’s government report last week that named consumption growth as a top priority.
Risk sentiment in the forex markets appears to be tilting towards risk aversion in Asian trading, marking a shift from the broad Dollar selloff earlier in the week. Overnight, US President Donald Trump granted temporary tariff exemptions for Canadian and Mexican goods under the USMCA, delaying a full-scale implementation until April 2. While this provided
The Pound Sterling rises to near 1.2650 against the US Dollar due to positive developments in the Russia-Ukraine peace truce. Fears of US President Trump’s tariffs on Canada, Mexico, and China loom large. The BoE is expected to follow a careful and gradual policy-easing approach. The Pound Sterling (GBP) trades higher against its major peers, except
Risk sentiment received a boost in early US trading as January’s PCE inflation data came in line with expectations, lifting hopes that Fed may have room to cut rates in the first half of the year. Both headline and core PCE inflation slowed, adding to expectations that disinflation remains on track. Fed fund futures now
Dollar traded broadly higher in Asian session, trying to stage a comeback after a failed rally attempt overnight. Renewed focus on tariffs appears to be driving some of the greenback’s momentum. Meanwhile, broader market sentiment is just steady following Nvidia’s strong earnings report, with lingering concerns over competition from China’s DeepSeek AI continue to weigh.
Trump reiterates tariffs on Canada and Mexico, fueling trade concerns. UK retailers slash investment as consumer spending weakens. Markets expect BoE to hold rates at 4.50% in March, cut by Q2. The Pound Sterling (GBP) advanced early in the North American session, bouncing off a two-day low of 1.2605, as the Greenback weakened due to falling
Dollar gained slightly overnight, buoyed by mild risk aversion and ongoing tariff threats from President Donald Trump. However, the lack of follow-through momentum in the greenback suggests traders remain hesitant to commit to large directional bets amid persistent policy uncertainty. US stock market weakness has been most pronounced in the NASDAQ, which fell by more
The forex markets remain rather indecisive today. Traders are paring back expectations for BoE rate cuts after UK inflation surged to a 10-month high. A March rate cut is now off the table, and markets are no longer fully pricing in two BoE cuts this year. However, this shift has provided only minimal support for
Dollar is trading is a mildly firmer tone while Gold inches closer to the key 3000 psychological level after US President Donald Trump officially raised tariffs on aluminum and steel imports. However, the broader market reaction has been relatively subdued. Major US equity indexes managed to post modest gains overnight, and 10-year Treasury yield also
Dollar faced significant volatility last week as shifting trade policy signals from the White House left investors scrambling for clarity. Initially, tariffs on Canadian and Mexican imports were imposed, only to be quickly suspended for 30 days following new agreements on border security and fentanyl control. Now, the focus turns to “reciprocal tariffs,” a move
