GBP: This week, Britain’s Conservative Party, which holds a big majority in parliament, is set to select a new leader who will become prime minister – Britain’s fifth in six years. Former chancellor Rishi Sunak and Penny Mordaunt are both potential successors to take over from Liz Truss, who quit last Thursday after just six weeks. Truss was […]
Last week, the dollar a good reason to smile thanks to the rise in yields on US treasuries, resulting in a dominance over sterling and the euro both which fell down to nearly three cents off September’s highest level, with the euro also giving up a similar amount.
In the week that Angela Merkel stepped down as Chancellor of Germany – the Central Banks dominated the markets last week with what at times appeared an overload of information emanating from every corner of the globe.
Last week, the dollar put in its worst performance this year after the Federal Reserve meeting was perceived as less hawkish than analysts predicted. In actual fact, the Fed did say that “progress” was being made towards normalisation, but in a relatively quiet market, traders ignored the subtleties of language and decided to sell dollars.
Just as Europe starts it summer holiday, last week saw some interesting developments on markets with swing between optimism and pessimism, despite worries over the spread of the delta variant ebbed and flowed.
With the currency markets being quiet for most of last week, all eyes will be focusing on Europe as we approach the peak summer holiday period.
Currencies continued to trade in the familiar tight ranges for most of last week as the markets awaited the US Consumer Price Index (CPI) for May, which, reported the highest core inflation figure for 30 years.
With UK showing signs of normality, the currency markets continued to worry last week about the impact of this on inflation and whether Central Banks will be too tardy in their response.
In what was holiday-shortened week saw sterling gain against the dollar above $1.4025, where it has opened this morning, we look how at inflation could see upbeat in UK currency as restrictions begin to ease.
Last week saw the first signs that an economic recovery is underway in the UK were seen on busy high streets and roads last week and in figures released by the Office for National Statistics (ONS).
