Tag Archives: Financenews

Fed Chair Powell’s Testimony Keeps Markets Steady

Yesterday’s market activity was relatively subdued on both sides of the Atlantic, with the spotlight firmly on Fed Chair Powell’s semi-annual testimony before Congress. As anticipated, his remarks and the ensuing Q&A session offered no surprises or new insights into the Fed’s stance on interest rate cuts.

Consequently, interest rate forecasts and the dollar remained steady, with no significant changes. On the currency front, most major currencies traded within narrow ranges, a trend that extended into overnight trading in Asia-Pacific markets.

Today’s schedule remains light on economic data releases. Fed Chair Powell is set to give his second day of testimony before Congress, but he is not expected to deviate from his previous comments. Other Fed officials’ remarks may also attract some attention, but overall, range trading is likely to dominate the FX markets.

For additional insights on how these developments could affect your business or to capitalise on market volatility, please reach out to speak with one of our experts.

French Elections Result in Hung Parliament: Market Reactions and Future Projections

The worst-case scenario has unfolded in France, as the recent election results point towards a hung parliament. The leftist New Popular Front (NFP) has secured the most seats, leading to a significant drop in the euro. The political instability that accompanies a hung parliament poses considerable risks to the French economy.

Across the Channel, the UK’s new government is gearing up for their first budget announcement. With Labour at the helm for the first time in 14 years, markets are bracing for potential volatility in the lead-up to this crucial event.

Today sees a lull in major economic data releases, shifting the focus to Thursday when the UK will publish its GDP figures. Markets are anticipating a modest growth of 0.2% month-on-month, up from 0%.

Thursday will also be pivotal for the US, with the release of the Consumer Price Index (CPI). The CPI is expected to come in at 3.1%, a 0.2% year-on-year decrease, providing key insights into the inflation trajectory.

On the currency front, the pound is showing strong performance with notable gains against both the euro and the dollar. The pound-to-euro exchange rate is hovering just below the recent highs observed last month.

For additional insights on how these developments could affect your business or to capitalize on market volatility, please reach out to speak with one of our experts.

French Election Results Shake Markets

Overnight, financial markets were abuzz with the latest developments in the French elections.

After a strong showing in the first round, Le Pen’s Rassemblement National (RN) experienced a significant decline over the weekend, falling from first to third place. Tactical voting in Sunday’s second round thwarted Marine Le Pen’s far-right party, leaving France in a state of political uncertainty as no party secured an absolute majority.

In a surprising turn, the New Popular Front (NFP) — a coalition of parties ranging from the far-left France Unbowed to the moderate Socialists and Ecologists — emerged with 182 seats in the National Assembly. This made them the largest group, yet still short of the 289 seats needed for a majority.

Macron’s centrist Ensemble alliance secured 163 seats, while Marine Le Pen’s far-right National Rally (RN) and its allies claimed 143 seats. Following these results, French Prime Minister Gabriel Attal, a protégé of Macron, announced his resignation effective Monday morning. The identity of his successor remains uncertain.

The euro has reacted to these developments by dropping, as France enters a period of political and fiscal uncertainty.

Today’s economic calendar is relatively quiet, with only German trade export/import numbers and US consumer credit data expected to draw any interest. The focus will shift to the UK on Thursday, with GDP, Industrial Production figures, and CPI numbers due to be released.

For more insights on how these events could impact your business or to capitalize on market volatility, please reach out to speak with one of our experts.

Labour’s Victory and Upcoming French Elections Stir Market Sentiments

Overnight, the Labour Party became the new government in the UK, a development that was widely anticipated. Consequently, the markets had already priced in a Labour win, resulting in little to no movement for the pound. However, with the second round of the French elections coming up on Sunday, we can expect increased market volatility heading into next week.

The stability of the British pound following Labour’s victory indicates a sense of political steadiness, which is reassuring for investors. In contrast, the potential win of the far-right political party in France’s upcoming election introduces a layer of uncertainty, likely to affect the currency market.

Yesterday, the United States celebrated Independence Day, leading to a pause in economic data releases. As markets reopen today, all eyes are on the release of Non-Farm Payrolls, a critical indicator of the current state of the US economy.

On the currency front, the pound has maintained its strength against the euro, reflecting further stability and resilience. Additionally, the pound has shown significant strength against the dollar, currently trading at its highest level since June 13th.

For more detailed insights on how these developments could impact your business or to take advantage of market volatility, please reach out to speak with one of our experts.

Breaking News: Britons Head to the Polls in Pivotal Election

Today, Britons are casting their votes in a parliamentary election that is widely expected to bring Keir Starmer’s Labour Party to power, ending Prime Minister Rishi Sunak’s 14-year Conservative tenure.

Opinion polls indicate that Starmer’s centre-left party is on track for a landslide victory. Many voters are seeking change after years of internal conflict and turmoil within the Conservative Party, which has seen five prime ministers in the past eight years.

Despite calling the election months earlier than planned, Sunak has recently shifted his campaign focus from securing a fifth consecutive Conservative victory to warning about the potential risks of an unchallenged Labour Party in parliament.

If the opinion polls are accurate, Britain will join other European nations in holding their governments accountable for the cost-of-living crisis sparked by the COVID-19 pandemic and Russia’s invasion of Ukraine. However, unlike France, Britain appears to be moving towards the centre-left rather than the far-right.

In other news, the United States is observing a market holiday in celebration of Independence Day. Across the Atlantic, the main European release of interest is the European Central Bank’s June meeting account, offering additional insights into the central bank’s recent decision to decrease interest rates by 25 basis points.

For more detailed insights on how these developments could impact your business or to take advantage of market volatility, please reach out to one of our experts.