Latest news with #MichaelPfister
Yahoo
14 hours ago
- Business
- Yahoo
Sterling slips versus dollar as inflation print, BoE meeting eyed
LONDON (Reuters) -Sterling was lower against the dollar on Tuesday as market focus stayed on developments in the Middle East, while traders await a closely-watched UK inflation print due on Wednesday and a Bank of England (BoE) interest rate decision due on Thursday. The pound was a fraction lower on the dollar at $1.3527 and also softer against the euro at 85.27 pence to the common currency.. In UK news, U.S. President Donald Trump on Monday signed an agreement formally lowering some tariffs on imports from Britain as the countries continue working toward a formal trade deal. The deal reaffirmed quotas and tariff rates on British automobiles and eliminated tariffs on the U.K. aerospace sector, but the issue of steel and aluminium remains unresolved. "I don't think the trade deal will change anything, the 10% tariffs remain in place and they only looked at traded goods that are not traded that much between the countries," said Michael Pfister, FX analyst at Commerzbank. The pound is up 8.5% versus the dollar so far this year, but 3% lower versus the euro. Pfister said weaker-than-expected economic data has weighed on euro/sterling since the beginning of June. Since then sterling is down about 1%, despite the UK being the only country to strike a trade deal with the U.S. Wednesday will see the latest UK inflation figures for May hit the wire. "UK inflation is expected to fall ever so slightly in May to 3.4%, a minor but welcome move in the right direction," Michael Field, chief equity strategist at Morningstar. He said current elevated inflation levels are likely to be transitory, with the U.S.-UK trade deal also expected to mitigate risk. Money markets expect the BoE to hold rates steady at 4.25% on Thursday and see about two more 25 bps rate cuts by December. Sign in to access your portfolio
Zawya
19 hours ago
- Business
- Zawya
Sterling slips versus dollar as inflation print, BoE meeting eyed
Sterling was lower against the dollar on Tuesday as market focus stayed on developments in the Middle East, while traders await a closely-watched UK inflation print due on Wednesday and a Bank of England (BoE) interest rate decision due on Thursday. The pound was a fraction lower on the dollar at $1.3527 and also softer against the euro at 85.27 pence to the common currency.. In UK news, U.S. President Donald Trump on Monday signed an agreement formally lowering some tariffs on imports from Britain as the countries continue working toward a formal trade deal. The deal reaffirmed quotas and tariff rates on British automobiles and eliminated tariffs on the U.K. aerospace sector, but the issue of steel and aluminium remains unresolved. "I don't think the trade deal will change anything, the 10% tariffs remain in place and they only looked at traded goods that are not traded that much between the countries," said Michael Pfister, FX analyst at Commerzbank. The pound is up 8.5% versus the dollar so far this year, but 3% lower versus the euro. Pfister said weaker-than-expected economic data has weighed on euro/sterling since the beginning of June. Since then sterling is down about 1%, despite the UK being the only country to strike a trade deal with the U.S. Wednesday will see the latest UK inflation figures for May hit the wire. "UK inflation is expected to fall ever so slightly in May to 3.4%, a minor but welcome move in the right direction," Michael Field, chief equity strategist at Morningstar. He said current elevated inflation levels are likely to be transitory, with the U.S.-UK trade deal also expected to mitigate risk. Money markets expect the BoE to hold rates steady at 4.25% on Thursday and see about two more 25 bps rate cuts by December . (Reporting by Lucy Raitano; Editing by William Maclean)
Business Recorder
20 hours ago
- Business
- Business Recorder
Sterling slips versus dollar as inflation print, BoE meeting eyed
LONDON: Sterling was lower against the dollar on Tuesday as market focus stayed on developments in the Middle East, while traders await a closely-watched UK inflation print due on Wednesday and a Bank of England (BoE) interest rate decision due on Thursday. The pound was a fraction lower on the dollar at $1.3527 and also softer against the euro at 85.27 pence to the common currency.. In UK news, U.S. President Donald Trump on Monday signed an agreement formally lowering some tariffs on imports from Britain as the countries continue working toward a formal trade deal. The deal reaffirmed quotas and tariff rates on British automobiles and eliminated tariffs on the U.K. aerospace sector, but the issue of steel and aluminium remains unresolved. 'I don't think the trade deal will change anything, the 10% tariffs remain in place and they only looked at traded goods that are not traded that much between the countries,' said Michael Pfister, FX analyst at Commerzbank. The pound is up 8.5% versus the dollar so far this year, but 3% lower versus the euro. Sterling steady on the dollar as Middle East conflict endures, BoE meeting in sight Pfister said weaker-than-expected economic data has weighed on euro/sterling since the beginning of June. Since then sterling is down about 1%, despite the UK being the only country to strike a trade deal with the U.S. Wednesday will see the latest UK inflation figures for May hit the wire. 'UK inflation is expected to fall ever so slightly in May to 3.4%, a minor but welcome move in the right direction,' Michael Field, chief equity strategist at Morningstar. He said current elevated inflation levels are likely to be transitory, with the U.S.-UK trade deal also expected to mitigate risk. Money markets expect the BoE to hold rates steady at 4.25% on Thursday and see about two more 25 bps rate cuts by December.
Reuters
20 hours ago
- Business
- Reuters
Sterling slips versus dollar as inflation print, BoE meeting eyed
LONDON, June 17 (Reuters) - Sterling was lower against the dollar on Tuesday as market focus stayed on developments in the Middle East, while traders await a closely-watched UK inflation print due on Wednesday and a Bank of England (BoE) interest rate decision due on Thursday. The pound was a fraction lower on the dollar at $1.3527 and also softer against the euro at 85.27 pence to the common currency. . In UK news, U.S. President Donald Trump on Monday signed an agreement formally lowering some tariffs on imports from Britain as the countries continue working toward a formal trade deal. The deal reaffirmed quotas and tariff rates on British automobiles and eliminated tariffs on the U.K. aerospace sector, but the issue of steel and aluminium remains unresolved. "I don't think the trade deal will change anything, the 10% tariffs remain in place and they only looked at traded goods that are not traded that much between the countries," said Michael Pfister, FX analyst at Commerzbank. The pound is up 8.5% versus the dollar so far this year, but 3% lower versus the euro. Pfister said weaker-than-expected economic data has weighed on euro/sterling since the beginning of June. Since then sterling is down about 1%, despite the UK being the only country to strike a trade deal with the U.S. Wednesday will see the latest UK inflation figures for May hit the wire. "UK inflation is expected to fall ever so slightly in May to 3.4%, a minor but welcome move in the right direction," Michael Field, chief equity strategist at Morningstar. He said current elevated inflation levels are likely to be transitory, with the U.S.-UK trade deal also expected to mitigate risk. Money markets expect the BoE to hold rates steady at 4.25% on Thursday and see about two more 25 bps rate cuts by December .
Zawya
07-02-2025
- Business
- Zawya
Pound ticks up after sliding on BoE cut and gloomy forecasts
The pound regained some ground on Friday after dropping on Thursday when the Bank of England cut interest rates and halved its growth forecast for the year. Sterling was last up 0.16% at $1.2458 on Friday, after falling 0.54% the previous day. The pound fell as much as 1.1% after the Bank of England cut rates to 4.5% and slashed its growth forecast for this year to 0.75%, half the previous estimate. It regained some ground when BoE Governor Andrew Bailey told Bloomberg that markets should not read too much into a switch by some policymakers to vote for deeper rate cuts. Investors struggled to know how to react to the Bank's forecasts, which also said inflation would now peak at 3.7% this year - sharply above a previous forecast of 2.8%. British bond yields, which move inversely to prices, initially fell but ended the day higher. "The Bank of England has a tough road ahead if it is to avoid potential stagflation," said Michael Pfister, FX analyst at Commerzbank. "I can fully understand why market participants are concerned about the new forecasts and are now pricing in sharper rate cuts. "However, the Bank of England has often surprised us in recent years. I would not be surprised to see another hawkish turn in March." Traders on Friday were expecting around 60 basis points on further BoE rate cuts this year, money market prices showed , little changed from before Thursday's decision. The BoE has cut three times since August, when rates stood at 5.25%. The euro was down 0.19% against the pound at 83.34, after rising 0.39% on Thursday. Sterling has slipped slightly against the dollar and euro this year, although its journey has been volatile. The pound dropped in early January as investors appeared spooked by Britain's sticky inflation, low growth and fiscal policies. Sterling has since recovered after data in mid-January showed underlying U.S. inflation was cooling - weighing on the dollar - although it has also swung as U.S. President Donald trump has threatened to ramp up global tariffs. Data on Friday showed UK house prices rose by more than expected last month as some buyers rushed to complete sales before an increase in property purchase taxes at the start of April, although the figures did little to move sterling. (Reporting by Harry Robertson; Editing by Angus MacSwan)
