Dollar stumbles with US yields despite historically high inflation

Dollar stumbles with US yields despite historically high inflation

GBP Sterling has felt the pinch from rising Brexit tensions over the last two trading sessions, however, yesterday’s bout of USD weakness after the CPI release put GBPUSD back above its 14-day moving average.  This morning, the pound has held above these averages...
ECB strikes balance between growth upgrade and dovish rhetoric

ECB strikes balance between growth upgrade and dovish rhetoric

Today’s ECB meeting was always a question of how the central bank could communicate an improvement in economic growth forecasts in a fashion that doesn’t move market expectations of policy tightening preemptively. With growth revised upwards from 4% to 4.1% in 2021...
US CPI Inflation and ECB decision to take centre stage in FX markets

US CPI Inflation and ECB decision to take centre stage in FX markets

GBP Yesterday’s session saw sterling tumble across the G10 currency board at a time when US dollar strength was less pronounced than seen earlier in the week. The pound’s weakness came after the European Union warned it may impose tariffs and quotas on the UK as the...
Bank of Canada maintains message in line with expectations

Bank of Canada maintains message in line with expectations

Wednesday’s Bank of Canada policy decision fell broadly in line with both our own and consensus expectations. That is, the Bank balanced a slip in near-term economic data with an improving external backdrop and growth outlook in order to hold policy and maintain the...
Patience is the aim of the game

Patience is the aim of the game

The Bank of Canada are set to announce their latest policy decision at 15:00 BST/ 10:00 ET on Wednesday June 9th, with Deputy Governor Timothy Lane scheduled to give an economic progress report on Thursday 10th. Given the underwhelming data since the Bank’s April...