The Bank’s Monetary Policy Committee (MPC) voted by a decisive 8:1 majority to maintain rates, indicating that more and more Bank members are becoming increasingly concerned about rising inflation since February. Given that inflation will reach 4.0% in the coming months, there are concerns that current forecasts of a gradual decline in inflation in 2026…
Markets European markets took a different, more pessimistic view on yesterday’s Fed policy meeting compared to the US. They appear to have more attention to the (stagflationary) risks in the new forecasts instead of Powell’s reassuring message. European stocks dropped more than 1% with Wall Street suffering from spillover effects. But contrasting with the previous…
We expect the Bank of England (BoE) to keep the Bank Rate unchanged at 4.50% on Thursday 20 March in line with consensus and market pricing. Data has been mixed and amid elevated uncertainty, this warrants a continued signalling of only a gradual approach to monetary policy easing. We expect the reaction in EUR/GBP to…
Dollar faced significant volatility last week as shifting trade policy signals from the White House left investors scrambling for clarity. Initially, tariffs on Canadian and Mexican imports were imposed, only to be quickly suspended for 30 days following new agreements on border security and fentanyl control. Now, the focus turns to “reciprocal tariffs,” a move…
Here we are, the last day and the last trading day of the year. It’s now been about two years that ChatGPT was launched and it’s been two years that the AI buzz pushed some US Big Tech companies to … the sky, really. Nvidia, which has become the icon of the AI rally, gained…
GBPUSD reversed from support level 1.2495 Likely to rise to resistance level 1.2625 GBPUSD currency pair recently reversed up from the pivotal support level 1.2495 (which has been steadily reversing the pair from May) intersecting with the lower daily Bollinger Band. The upward reversal from the support level 1.2495 stopped the previous medium-term impulse wave…
GBPUSD finds strong support in 1.2480 region But upside momentum struggles to take off GBPUSD has managed to hold above the 1.2500 mark this week following last week’s post-Fed tumble that pulled the pair to the lowest since May, hitting 1.2474. The slide reinforced the medium-term downtrend line as a strong resistance wall, but now…
Despite the weakening after the BoE meeting, the pound remains resilient, especially in the main cross-pairs, including the New Zealand dollar. Meanwhile, the past week was disappointing for the NZD and its buyers. Data published last Wednesday reflected the deterioration of GDP dynamics: in the 3rd quarter, the New Zealand economy growth slowed by…
On Wednesday, the focus of market participants will be the publication (at 19:00 GMT) of the Federal Reserve’s interest rate decision. Tomorrow, the central banks of Japan and the UK will hold their monetary policy meetings. The first of these will be the Bank of Japan. Most economists believe that the Japanese economy will maintain…
US equities finished strong, driven by tech and retail stocks, with the S&P 500 reaching record highs. The US dollar weakened due to increased expectations of a December rate cut by the Federal Reserve. The upcoming week’s focus is on US jobs data, which could impact the Fed’s decision and the US dollar’s performance. Week…