Latest news with #KitJuckes
Zawya
3 days ago
- Business
- Zawya
Sterling set for fourth monthly rise against a weakened dollar
Sterling held steady on Friday, set for its fourth month in a row of gains against the dollar, as recent favourable economic data support Britain's currency just as worries over U.S. tariffs and high debt weigh on the greenback. "Sterling looks well supported," said Kit Juckes, chief FX strategist at Societe Generale, pointing to "reasonably good" data trends. Sterling was last trading at $1.3472, little changed on the day and down around 0.5% on the week after gaining about 2% last week. That leaves the pound set to end May with a gain of around 1%, which would mark a fourth straight month of increases against a weakened greenback. It last recorded four consecutive monthly gains against the dollar in 2022. The dollar, meanwhile, was en route to its fifth-straight monthly decline on Friday, as further uncertainty around trade policy and U.S. fiscal health weighed. Sterling rose around 0.25% to 84.06 pence per euro. Still, it was set for its first week of declines after six weeks of increases as gains seen after UK retail sales and inflation numbers last week and optimism around Britain's trade deals with the U.S. and India faded. Last week's stronger than expected UK inflation print caused markets to do away with bets for a rate cut at the Bank of England's policy meeting in June, with about 97% of traders now anticipating that the central bank will hold rates after a cut by 0.25 percentage points to 4.25% in May. "The economy has not got the legs to justify a significant strengthening (of the pound) from here," Juckes said. "I just think it's going to frustrate all the bears, left, right, and centre." Further out, traders looked ahead to a multi-year spending review by finance minister Rachel Reeves on June 11, with the government facing the challenging task of boosting economic growth while limiting spending and tax increases as it has pledged. (Reporting by Linda Pasquini. Editing by Dhara Ranasinghe and Mark Potter)
Reuters
3 days ago
- Business
- Reuters
Sterling set for fourth monthly rise against a weakened dollar
May 30 (Reuters) - Sterling held steady on Friday, set for its fourth month in a row of gains against the dollar, as recent favourable economic data support Britain's currency just as worries over U.S. tariffs and high debt weigh on the greenback. "Sterling looks well supported," said Kit Juckes, chief FX strategist at Societe Generale, pointing to "reasonably good" data trends. Sterling was last trading at $1.3472 , little changed on the day and down around 0.5% on the week after gaining about 2% last week. That leaves the pound set to end May with a gain of around 1%, which would mark a fourth straight month of increases against a weakened greenback. It last recorded four consecutive monthly gains against the dollar in 2022. The dollar, meanwhile, was en route to its fifth-straight monthly decline on Friday, as further uncertainty around trade policy and U.S. fiscal health weighed. Sterling rose around 0.25% to 84.06 pence per euro. Still, it was set for its first week of declines after six weeks of increases as gains seen after UK retail sales and inflation numbers last week and optimism around Britain's trade deals with the U.S. and India faded. Last week's stronger than expected UK inflation print caused markets to do away with bets for a rate cut at the Bank of England's policy meeting in June, with about 97% of traders now anticipating that the central bank will hold rates after a cut by 0.25 percentage points to 4.25% in May. "The economy has not got the legs to justify a significant strengthening (of the pound) from here," Juckes said. "I just think it's going to frustrate all the bears, left, right, and centre." Further out, traders looked ahead to a multi-year spending review by finance minister Rachel Reeves on June 11, with the government facing the challenging task of boosting economic growth while limiting spending and tax increases as it has pledged.
Business Recorder
28-04-2025
- Business
- Business Recorder
Pound finds some footing against dollar
LONDON: British retail sales data that exceeded expectations offered some support to sterling on Friday though not enough to keep it in positive territory against the dollar's mini bounce-back across the board. The pound was last down 0.22% against the dollar at $1.3309, hoisted off its session lows by the data that showed retail sales volumes rose by 0.4% in March alone, compared to the 0.4% decline expected by a Reuters poll of economists. For the first quarter as a whole, retail sales rose by 1.6% - the strongest reading in four years. 'Sterling has got a little bit of comfort from this. I wouldn't overstate it, but it had a decent run and was threatening to fall back and got a little bit of help from the data, temporarily at least,' said Kit Juckes, chief FX strategist at Societe Generale. The dollar was stronger against nearly all developed market currencies on Friday, helped by signs of easing trade tensions between the US and major partners, including China. The US currency remains significantly weaker than before President Donald Trump's tariff announcements on April 2, however. Sterling, which has been roughly in the middle of the pack, is up 3.25% on the dollar in April, which would be its biggest monthly gain since November 2023. The euro is up a chunky 5.3% on the dollar in April, and has gained nearly 2% on the pound, in what would be its biggest monthly advance since December 2022. On Friday, the pound and euro were largely moving in tandem, with the euro last at 85.35 pence. Traders this week have also been digesting remarks from Bank of England policymakers.
Yahoo
25-04-2025
- Business
- Yahoo
Pound finds some footing on retail sales amid dollar rebound
LONDON (Reuters) -British retail sales data that exceeded expectations offered some support to sterling on Friday though not enough to keep it in positive territory against the dollar's mini bounce-back across the board. The pound was last down 0.22% against the dollar at $1.3309, hoisted off its session lows by the data that showed retail sales volumes rose by 0.4% in March alone, compared to the 0.4% decline expected by a Reuters poll of economists. For the first quarter as a whole, retail sales rose by 1.6% - the strongest reading in four years. "Sterling has got a little bit of comfort from this. I wouldn't overstate it, but it had a decent run and was threatening to fall back and got a little bit of help from the data, temporarily at least," said Kit Juckes, chief FX strategist at Societe Generale. The dollar was stronger against nearly all developed market currencies on Friday, helped by signs of easing trade tensions between the U.S. and major partners, including China. [FRX/] The U.S. currency remains significantly weaker than before President Donald Trump's tariff announcements on April 2, however. Sterling, which has been roughly in the middle of the pack, is up 3.25% on the dollar in April, which would be its biggest monthly gain since November 2023. The euro is up a chunky 5.3% on the dollar in April, and has gained nearly 2% on the pound, in what would be its biggest monthly advance since December 2022. On Friday, the pound and euro were largely moving in tandem, with the euro last at 85.35 pence. Traders this week have also been digesting remarks from Bank of England policymakers. Governor Andrew Bailey said on Thursday he was focused on an expected shock to economic growth from Trump's tariffs and retaliatory measures by other countries, but did not foresee a recession in Britain. Another BoE rate setter, Megan Greene, is due to speak later in the day. Earlier in the week, she said tariffs would put downward pressure on British inflation. Such remarks have been supporting bets on BoE rate cuts. Markets are currently pricing two rate cuts across the BoE's next three meetings, and at least one further move by year-end. (Reporting and writing by Alun John; editing by Mark Heinrich) Sign in to access your portfolio
Reuters
25-04-2025
- Business
- Reuters
Pound finds some footing on retail sales amid dollar rebound
LONDON, April 25 (Reuters) - British retail sales data that exceeded expectations offered some support to sterling on Friday though not enough to keep it in positive territory against the dollar's mini bounce-back across the board. The pound was last down 0.22% against the dollar at $1.3309, hoisted off its session lows by the data that showed retail sales volumes rose by 0.4% in March alone, compared to the 0.4% decline expected by a Reuters poll of economists. For the first quarter as a whole, retail sales rose by 1.6% - the strongest reading in four years. "Sterling has got a little bit of comfort from this. I wouldn't overstate it, but it had a decent run and was threatening to fall back and got a little bit of help from the data, temporarily at least," said Kit Juckes, chief FX strategist at Societe Generale. The dollar was stronger against nearly all developed market currencies on Friday, helped by signs of easing trade tensions between the U.S. and major partners, including China. The U.S. currency remains significantly weaker than before President Donald Trump's tariff announcements on April 2, however. Sterling, which has been roughly in the middle of the pack, is up 3.25% on the dollar in April, which would be its biggest monthly gain since November 2023. The euro is up a chunky 5.3% on the dollar in April, and has gained nearly 2% on the pound, in what would be its biggest monthly advance since December 2022. On Friday, the pound and euro were largely moving in tandem, with the euro last at 85.35 pence. Traders this week have also been digesting remarks from Bank of England policymakers. Governor Andrew Bailey said on Thursday he was focused on an expected shock to economic growth from Trump's tariffs and retaliatory measures by other countries, but did not foresee a recession in Britain. Another BoE rate setter, Megan Greene, is due to speak later in the day. Earlier in the week, she said tariffs would put downward pressure on British inflation. Such remarks have been supporting bets on BoE rate cuts. Markets are currently pricing two rate cuts across the BoE's next three meetings, and at least one further move by year-end.
