Today, the Bank of England (BoE) is set to cut its short-term policy interest rate by 25 basis points to 4%, its lowest level in over two years, based on consensus expectations. It will be the BoE’s second rate cut this year, as several of its Monetary Policy Committee members were cautious over a sticky…
On Thursday, the Bank of England is widely expected by analysts to cut its base rate by a quarter of a point to 4.0%. These expectations are weighing on the pound against the euro and the dollar on Wednesday, as the ECB and the Fed left their rates unchanged in July. Globally, this is a…
Highlights include US ISM Services PMI, BoE, BoJ SOO, Canada & NZ Jobs, China Trade and OPEC+ Newsquawk Week Ahead Highlights: 4th-8th August 2025 SUN: OPEC+ meeting MON: US Employment Trends (Jun), US Durable Goods R (Jun) TUE: Chinese Final Caixin Services and Composite PMI (Jul), EZ/UK/US S&P Global Final Services and Composite PMIs…
Markets showed surprising composure last week as equities climbed and Dollar dominate FX rankings. NASDAQ’s relentless ascent and a fresh record for the S&P 500 highlighted investor confidence despite growing political noise and tariff tensions. Elsewhere in FX, Euro and Sterling held firm, along with Loonie but were largely lifted by relative outperformance. Meanwhile, Aussie…
Dollar attracts safe haven flows amid trade anxiety. US inflation data could shake July Fed cut probability. UK, Canadian and Japanese CPI numbers also on tap. Weak Chinese growth may increase calls for more stimulus. Dollar reacts differently to tariff concerns now The dollar has held very well against its major peers this week, although…
Markets Market positioning about the near term Bank of England’s policy rate path has been quite volatile over the past months. Going into the May decision, investors expected the UK central bank to ditch its gradual rate cut cycle to give the economy additional backing going through the turbulent tariff period. They were wrongfooted. The…
BoE MPC member Alan Taylor reinforced his dovish position in an interview with the Financial Times, highlighting growing downside risks to the UK economy from global developments. Taylor, who alongside Swati Dhingra voted for a larger 50bps rate cut in May, argued that monetary policy should be on a “lower policy path” given the accumulating…
The Pound Sterling recovers to 1.3470 against the US Dollar as investors reassess the impact of the US court’s decision against tariffs. The US court ruled out Trump’s tariff policy, citing it as a violation of constitutional limits. The IMF has slightly raised its forecast for UK GDP growth for the year to 1.2% The…
UK inflation accelerated more strongly than forecast, casting doubt on the likelihood of a rate cut by the Bank of England any time soon. The overall consumer price index increased 1.2% in April, the strongest monthly jump since April 2022. The annual rate of growth accelerated from 2.6% to 3.5%, the highest since January 2024….
BoE Deputy Governor Clare Lombardelli reinforced the case for a “gradual and careful” approach to policy easing in a speech today. She noted underlying inflation “have continued to fall” despite noises. Monetary policy is still restrictive and will continue to balance the need to lower inflation with the risk of undermining already soft demand. Lombardelli…