Tag Archives: GBPnews

Market sentiment was positive yesterday, as news of a possible resolution to the Russia-Ukraine conflict boosted risk appetite. Investors responded optimistically, driving gains across major market indices on both sides of the Atlantic.

Adding to the upbeat mood, strong business results updates further bolstered confidence. The ‘risk-on’ sentiment was reflected in market movements, with investors willing to take on more risk in response to these developments.

During yesterday’s European session, most major currency pairs traded within tight ranges. However, the euro faced pressure following weaker-than-expected Eurozone industrial production data for December, weighing on the currency.

Meanwhile, the US dollar saw modest initial gains after rumours emerged that the Trump administration was considering a plan to impose reciprocal tariffs on its trading partners. These speculations contributed to slight volatility in dollar trading.

Looking ahead, today’s key economic release is the second reading of the Eurozone’s Q4 GDP. No revisions are expected to the preliminary 0.0% q/q estimate. In the US, market participants will be watching January’s retail sales data, forecasted at -0.1% m/m, alongside industrial production figures, projected at 0.3% m/m.

For businesses navigating these market movements, staying informed is crucial. If you’d like expert insights on how these trends may impact your business or how to capitalise on market volatility, reach out to our specialists today.

It’s shaping up to be a quiet day in the financial markets, with the primary focus on the release of US Consumer Price Index (CPI) data later this afternoon. Investors and businesses alike will be keeping a close eye on the report, as inflation figures can have a significant impact on market sentiment and future interest rate decisions from the Federal Reserve.

Looking ahead, attention will quickly shift to tomorrow’s UK growth figures. These data releases will provide crucial insights into the economic outlook and could influence the direction of the pound in the coming days.

After a volatile start to the week, sterling has found some stability, bouncing back against major currencies. Notably, GBP/USD (Cable) is closing in on a weekly high, offering a potentially favourable opportunity for those looking to purchase US dollars.

For businesses navigating currency fluctuations, understanding these market movements is key to making informed decisions. If you’d like expert insights on how these trends could impact your business or how to take advantage of market volatility, our team is here to help. Get in touch with one of our specialists today.

With minimal economic data releases this morning, market attention turns to Bank of England (BoE) Governor Andrew Bailey. Investors will closely analyse his remarks for clues on the central bank’s outlook, particularly regarding interest rate cuts and inflation trends. His comments could shape expectations for UK monetary policy in the months ahead.

US Inflation Data in Focus Tomorrow

The next major market-moving event comes from the United States, with the Consumer Price Index (CPI) report set for release tomorrow afternoon.

• Expected Inflation Rate: 2.9%
• Market Impact: A stable or lower reading could reinforce expectations of Federal Reserve rate cuts, while a higher-than-expected figure could boost the dollar and delay monetary easing.

Given the global influence of US economic data, traders will be watching closely for any inflation surprises that could shake markets.

UK GDP Data to Highlight Economic Stagnation

On Thursday, the UK will release Q4 GDP figures, a key indicator of economic performance.

• Forecast: -0.1% contraction
• Trend: The UK economy has failed to grow since July, reinforcing concerns about stagnation and weak domestic demand.
• Impact: A weaker-than-expected GDP figure could further pressure the pound, adding to concerns over the UK’s economic trajectory.

Pound Weakens Across the Board

As the week begins, the British pound is struggling against all major currencies, reflecting broader market sentiment and economic uncertainty. With Bailey’s remarks, upcoming inflation data, and GDP figures all in play, volatility in GBP trading is likely to increase.

Navigating Market Volatility

With key central bank decisions and economic reports ahead, businesses and investors should stay informed and prepared. Whether you’re looking to hedge currency exposure or capitalise on market trends, speak to a QuMoney expert today.

Last week saw a wave of significant macroeconomic events, shaking up financial markets. The US decision to impose tariffs on China, Canada, and Mexico initially jolted investors, though a subsequent delay on Canadian and Mexican tariffs helped stabilise sentiment.

Bank of England Delivers Expected Rate Cut

As anticipated, the Bank of England (BoE) cut interest rates by 25 basis points. However, the voting split within the Monetary Policy Committee (MPC) signalled a more dovish stance, with two members advocating a larger 50bps cut.

Despite the easing bias, the BoE remains cautious, given ongoing economic uncertainty. Markets will closely monitor incoming data to gauge whether further rate cuts are likely.

US Jobs Report Triggers Market Volatility

The January US labour market report delivered mixed signals:

• Payrolls data came in below expectations, raising concerns about slowing employment growth.
• Unemployment fell, and wage growth advanced, suggesting continued labour market resilience.

These contradictory factors created FX market volatility, with the dollar fluctuating as traders reassessed Federal Reserve expectations.

Key Market Events This Week

This week brings another wave of high-impact economic data, including:

US Economic Reports:

• January Industrial Production & Retail Sales – Key indicators of economic momentum.
• Inflation Updates – A major factor in Fed policy decisions.
• Federal Reserve Chair Powell’s Testimony – Markets will watch for signals on future interest rate moves.

UK Q4 GDP Reading:

• The first estimate of Q4 GDP will offer a snapshot of UK economic performance and could influence BoE policy expectations.

US Tariff Announcements:

• Markets will continue to digest the weekend’s latest trade policy updates, with potential implications for global trade and currency markets.

Navigating Market Volatility

With economic uncertainty at the forefront, businesses and investors must stay informed and proactive. If you’re looking to manage currency risk or seize market opportunities, speak to a QuMoney expert today.

Yesterday marked the first Bank of England (BoE) policy meeting of 2025, with the central bank cutting interest rates by 25 basis points to 4.50%. This decision was widely expected, and while the BoE remains cautious about further easing, market expectations now suggest UK interest rates could fall below 4% by year-end.

BoE Signals Gradual Approach to Further Rate Cuts

Despite speculation about a more aggressive rate-cutting cycle, the BoE has emphasised a cautious, gradual approach to further monetary easing. However, the divided vote within the committee has fueled debate over how quickly additional cuts could come. Investors will closely watch future economic data to gauge the pace of policy adjustments.

Sterling Weakens After BoE Decision

Following the rate cut announcement, sterling found itself under pressure, slipping against both the US dollar and the euro. The pound’s weakness reflects market sentiment that further rate cuts are likely, potentially reducing the currency’s appeal to investors.

US Payrolls Data in Focus – Key Market Risk Ahead

With attention shifting to the US economic calendar, today brings a key event risk for the dollar. The market will closely monitor:

📌 US Non-Farm Payrolls (NFP) Report – A stronger-than-expected jobs report could boost the dollar, adding further pressure on GBP/USD.

📌 Other US Employment Data – Additional indicators of labour market strength may influence Federal Reserve rate expectations and impact global currency movements.

Navigating Market Volatility

With BoE policy shifts and major US economic data releases shaping market sentiment, businesses and investors should stay prepared. Whether you’re looking to hedge currency risk or capitalise on market movements, speak to a QuMoney expert today.