Latest news with #Ebury
Yahoo
4 days ago
- Business
- Yahoo
Pound takes breather after hitting highest point against dollar since 2022
The pound pulled back slightly against the dollar on Friday in European trading hours, dipping almost 0.3% to trade around the $1.354 mark. Sterling's rally has sent it to its highest point against the greenback since 2022, but that's largely due to dollar weakness, analysts say. 'Domestic factors have also been supportive of sterling," said Matthew Ryan, head of market strategy at global financial services firm Ebury. Read more: FTSE 100 LIVE: Stocks mixed as traders weigh up Trump-Musk row and trade war developments 'This week's updated UK PMI figures provide reason for optimism, as the composite index was revised sharply higher to 50.3 in May (from the initial 49.4 estimate), i.e. back above the key level of 50 that separates growth from expansion. 'As we've been stressing for some time, Britain's economy should be well positioned to weather the tariff storm, while at the same time inflation is printing well above the Bank of England's 2% target." The dollar index ( headed 0.2% higher, meanwhile. The index tracks it against a basket of other currencies. The pound was almost flat against the euro following a Thursday interest rate cut by the European Central Bank (ECB). Read more: Average UK house price falls in May after stamp duty changes The bloc cut interest rates by a quarter of a percentage point for the eighth time in a year, as the bank attempts to support the euro economy after the turmoil caused by US president Donald Trump's trade war. The benchmark rate on the deposit facility has been reduced from 2.25% down to 2%, from a high of 4% toward the middle of 2023. Gold prices headed higher as economic uncertainty persists surrounding president Trump's trade tariffs. The yellow metal rose despite a strengthening dollar. Spot gold prices rose 0.4% to $3,364, while gold futures headed 0.3% higher to trade around $3,384. The weakness in the dollar in recent weeks has made it cheaper for buyers holding other currencies to snap up gold — a safe haven in uncertain times. "There is considerable geopolitical uncertainty with Russia-Ukraine, Iran, Syria and China driving people to buy gold... and although traders may not expect gold to rise as quickly, there is still plenty of upside," Daniel Pavilonis, senior market strategist at RJO Futures told Reuters on Thursday. Oil prices were on the back foot on Friday, pulling slightly lower amid concerns about oversupply and economic growth. Brent crude futures (BZ=F) fell 0.3% to $64.59 a barrel, while West Texas Intermediate futures (CL=F) declined 0.3% at $63.18 a barrel. Read more: The most popular stocks and funds investors bought in May Saudi Arabia has bee pushing for a major increase in oil production and has slashed prices for Asian buyers, signalling weaker demand, analysts said. The July price cut by Saudi Arabia, which is the world's biggest oil exporter, comes after the decision from the Organization of the Petroleum Exporting Countries and their allies — known as OPEC+ — to increase output next in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Pound takes breather after hitting highest point against dollar since 2022
The pound pulled back slightly against the dollar on Friday in European trading hours, dipping almost 0.3% to trade around the $1.354 mark. Sterling's rally has sent it to its highest point against the greenback since 2022, but that's largely due to dollar weakness, analysts say. 'Domestic factors have also been supportive of sterling," said Matthew Ryan, head of market strategy at global financial services firm Ebury. Read more: FTSE 100 LIVE: Stocks mixed as traders weigh up Trump-Musk row and trade war developments 'This week's updated UK PMI figures provide reason for optimism, as the composite index was revised sharply higher to 50.3 in May (from the initial 49.4 estimate), i.e. back above the key level of 50 that separates growth from expansion. 'As we've been stressing for some time, Britain's economy should be well positioned to weather the tariff storm, while at the same time inflation is printing well above the Bank of England's 2% target." The dollar index ( headed 0.2% higher, meanwhile. The index tracks it against a basket of other currencies. The pound was almost flat against the euro following a Thursday interest rate cut by the European Central Bank (ECB). Read more: Average UK house price falls in May after stamp duty changes The bloc cut interest rates by a quarter of a percentage point for the eighth time in a year, as the bank attempts to support the euro economy after the turmoil caused by US president Donald Trump's trade war. The benchmark rate on the deposit facility has been reduced from 2.25% down to 2%, from a high of 4% toward the middle of 2023. Gold prices headed higher as economic uncertainty persists surrounding president Trump's trade tariffs. The yellow metal rose despite a strengthening dollar. Spot gold prices rose 0.4% to $3,364, while gold futures headed 0.3% higher to trade around $3,384. The weakness in the dollar in recent weeks has made it cheaper for buyers holding other currencies to snap up gold — a safe haven in uncertain times. "There is considerable geopolitical uncertainty with Russia-Ukraine, Iran, Syria and China driving people to buy gold... and although traders may not expect gold to rise as quickly, there is still plenty of upside," Daniel Pavilonis, senior market strategist at RJO Futures told Reuters on Thursday. Oil prices were on the back foot on Friday, pulling slightly lower amid concerns about oversupply and economic growth. Brent crude futures (BZ=F) fell 0.3% to $64.59 a barrel, while West Texas Intermediate futures (CL=F) declined 0.3% at $63.18 a barrel. Read more: The most popular stocks and funds investors bought in May Saudi Arabia has bee pushing for a major increase in oil production and has slashed prices for Asian buyers, signalling weaker demand, analysts said. The July price cut by Saudi Arabia, which is the world's biggest oil exporter, comes after the decision from the Organization of the Petroleum Exporting Countries and their allies — known as OPEC+ — to increase output next month.
Reuters
21-05-2025
- Business
- Reuters
UK's FTSE 100 inches lower as market assesses inflation data, mixed earnings
May 21 (Reuters) - Britain's FTSE 100 index edged lower on Wednesday, weighed by a mixed bag of corporate earnings, and as the country's hotter-than-expected inflation data led investors to temper expectations for the Bank of England's interest rate cuts. As of 0949 GMT, the blue-chip index (.FTSE), opens new tab was down 0.1%. Britain suffered a bigger-than-expected inflation surge in April, including in areas watched closely by the Bank of England. "Today's data should put pay to the possibility of another UK rate cut for a few months, and will likely encourage the Bank of England to maintain its hawkish policy guidance for some time yet," said Matthew Ryan, Head of Market Strategy at Ebury. The chance of a rate cut in August was cut to 40% by investors, down from 60% before the inflation data. Sterling hit its highest in three years, opens new tab against the U.S. dollar after the figures were published. The inflation data triggered a slight wobble on the more domestically-focused midcap index (.FTMC), opens new tab, which was down 0.7%. Separately, British house prices also rose at their fastest pace since the end of 2022 in the 12 months to March, according to official data published on Wednesday. Among the blue-chips, sportswear retailer JD Sports' shares (JD.L), opens new tab were the worst hit, dropping 6.5% after it warned that President Donald Trump's tariffs may force the company to hike prices in the key market. Marks & Spencer (MKS.L), opens new tab slid 2% after the retailer said "a highly sophisticated and targeted cyberattack" would cost it about 300 million pounds ($403 million) in operating profit. On the other hand, aerospace and defence sub-index (.FTNMX502010), opens new tab gained 1.3%. Utilities (.FTUB6510), opens new tab were up 1% with SSE (SSE.L), opens new tab rising 1.2% even after the renewable energy generator cut its five-year investment plans by 3 billion pounds ($4.04 billion), citing a changing macroeconomic environment across the energy sector. Currys (CURY.L), opens new tab rose 1.9% after the electricals retailer raised its annual profit forecast for the third time this year.
Yahoo
19-05-2025
- Business
- Yahoo
Sterling on track for fifth weekly rise versus euro, await UK-EU meeting
By Stefano Rebaudo (Reuters) -Sterling was on track for its fifth straight weekly rise against the euro on Friday, while hovering near its highest levels since early April. President Donald Trump's April 2 announcement of aggressive trade duties triggered a sharp but brief selloff in U.S. assets in the following days, supporting the single currency. The greenback fell on Friday, tracking U.S. Treasury yields, but was set for its fourth weekly rise versus the euro. The euro area's currency rose 0.1% to 84.14 pence but was on track for a weekly fall of 0.51%. It hit 84 pence on Tuesday, its lowest since April 3. Market focus is shifting to a UK-European Union meeting next week after the pound rose on Thursday on strong economic data. "Market participants will be hoping for a 'reset' of sorts in the relationship between Britain and the common bloc in the hope that an accord can be reached that reverses some of the damage done to trade relations," said Matthew Ryan, strategist at global financial services firm Ebury. "Signs of closer alignment between the UK and EU should be bullish for the pound," he added. Britain's foreign minister will host European peers on Monday to discuss support for Ukraine and greater regional defence cooperation in the run-up to Prime Minister Keir Starmer's summit with European Union leaders next week. Meanwhile, analysts are assessing the economic outlook after data showed that British businesses and consumers have remained largely unfazed by worries about the outlook for the economy. ING highlighted that GDP growth slowed in the first quarter of 2025 on a yearly basis, while Schroders noted the British economy was open and prone to suffer from a global slowdown. The pound rose 0.05% to $1.33303. Sign in to access your portfolio
Business Recorder
19-05-2025
- Business
- Business Recorder
Sterling on track for fifth weekly rise versus euro
LONDON: Sterling was on track for its fifth straight weekly rise against the euro on Friday, while hovering near its highest levels since early April. President Donald Trump's April 2 announcement of aggressive trade duties triggered a sharp but brief selloff in US assets in the following days, supporting the single currency. The greenback fell on Friday, tracking US Treasury yields, but was set for its fourth weekly rise versus the euro. The euro area's currency rose 0.1% to 84.14 pence but was on track for a weekly fall of 0.51%. It hit 84 pence on Tuesday, its lowest since April 3. Market focus is shifting to a UK-European Union meeting next week after the pound rose on Thursday on strong economic data. 'Market participants will be hoping for a 'reset' of sorts in the relationship between Britain and the common bloc in the hope that an accord can be reached that reverses some of the damage done to trade relations,' said Matthew Ryan, strategist at global financial services firm Ebury. 'Signs of closer alignment between the UK and EU should be bullish for the pound,' he added. Britain's foreign minister will host European peers on Monday to discuss support for Ukraine and greater regional defence cooperation in the run-up to Prime Minister Keir Starmer's summit with European Union leaders next week. Meanwhile, analysts are assessing the economic outlook after data showed that British businesses and consumers have remained largely unfazed by worries about the outlook for the economy. ING highlighted that GDP growth slowed in the first quarter of 2025 on a yearly basis, while Schroders noted the British economy was open and prone to suffer from a global slowdown. The pound rose 0.05% to $1.33303.
