Articles Archive for August 2016
Currencies, French News »
Sterling rebounds following the CPI data release
Sterling rebounded positively this morning on the back of a better than expected CPI reading, showing an increase of 0.6% against market expectation of 0.5%. Retail sales also rose 1.9% in July against June’s reading of 1.6%. General Transport and alcohol (weather related) were said to have been a major factor, giving importers a timely boost as GBP still struggles for momentum post Brexit.
After German ZEW Survey today the US also releases its CPI data, again with the actual number expected to be bang …
Brexit, Currencies, French News, interest rate cut »
The main story dominating the market yesterday was the Bank of England’s decision to cut interest rate by 25bp, to a new record low of 0.25%, and the launch of a massive stimulus package designed to save the UK economy from recession. The Bank of England’s Monetary Policy Committee (MPC) voted unanimously to slash interest rates to an all-time low; they also hinted that it might cut rates “close to but a little above zero” and could unleash more Quantitative Easing if needed.
With a 60 billion government bond buying program …
Brexit, Currencies, French News »
In the aftermath of the landmark Brexit vote, the Governor of the Bank of England, Mark Carney, indicated that the UK could see an interest rate cut over the summer.
Today was that day, as the central bank reduced the cost of borrowing from 0.50% to 0.25%. This is first UK interest rate cut in over 7 years (March 2009 being the last).
Currency markets had already anticipated this move, in light of poor economic data since the results of the Brexit vote, plus lowering business and consumer confidence.
The introduction of an …
Currencies, French News »
Sterling has strengthened enough to regain some of the ground it lost at the start of the week, but it was also given a kick following a much smaller than expected fall in the UK construction PMI data for July – a reading of 45.9 against a forecasted 43.8.
The construction sector is seen as being significantly vulnerable following the UK’s Brexit vote. Further to registering a 45.9 for July, down fractionally from 46.0 in June, the latest reading signalled the fastest overall decline in construction output since June 2009. This …