Latest news with #Suren Thiru
Yahoo
4 days ago
- Business
- Yahoo
Sterling hits one-month high as UK growth better than expected
Pound (GBPUSD=X, GBPEUR=X) The pound rose after the UK economy posted better-than-expected growth in the second quarter of the year. Sterling rose 0.1% against the dollar to $1.3583, the highest level seen in a month, and gained 0.2% versus the euro to €1.1618 as the stronger growth made interest rate cuts by the Bank of England less likely. ICAEW economics director Suren Thiru said: 'While these stronger than expected figures may not ease concerns among rate-setters over the health of the UK economy, a September interest rate cut remains implausible given mounting concerns over rising inflation.' The economy grew 0.4% month-on-month in June, snapping a run of negative prints — May was -0.1% — and beating expectations for a more subdued recovery of 0.1%. Read more: UK economic growth slows between April and June British output rose by 0.3% in the second quarter of 2025, the Office for National Statistics (ONS) said. That was higher than the 0.1% expected by economists polled by Reuters. The US dollar index ( which measures the greenback against a basket of six currencies, was near multi-week lows at 97.79. Gold (GC=F) Gold extended gains to a third session on Thursday morning, supported by growing expectations that the US Federal Reserve may cut interest rates in September, following subdued inflation data that also weighed on the dollar. At the time of writing, gold futures were muted at $3,409.40 per ounce, but spot gold inched up by 0.3% to $3,365.05 per ounce. "Markets are pricing in the chance that the Fed cuts 50 basis points in September. So, the dollar is weakening, gold is going up as a result, yields are also down," said Kyle Rodda, financial market analyst. "The technical setup of gold looks really constructive. The trend still looks higher. We just basically need to see the market break through $3,400 level on a sustained basis." Read more: FTSE 100 LIVE: Markets muted as Zelensky to meet Starmer before Trump-Putin summit Data released on Tuesday revealed that the US consumer price index (CPI) rose largely in line with expectations. Analysts noted that the full effects of tariff-driven price increases have yet to be reflected in the broader economy. The mild inflation data further strengthened the case for the Federal Reserve to lower its benchmark interest rate at its upcoming meeting. Markets place a 95% probability on a rate cut in September. Lower interest rates reduce the opportunity cost of holding non-yielding assets such as gold, making the metal more appealing to investors. Oil (BZ=F, CL=F) Oil prices climbed on Thursday as investors assessed the potential impact of the upcoming US-Russia summit on Ukraine, set for Friday. Markets are particularly focused on how the meeting might affect Russian crude flows, with secondary sanctions threatening Moscow's customers. However, a growing supply outlook kept oil's gains in check. Brent (BZ=F) crude futures rose 0.6% to trade at $66.04 per barrel, at the time of writing, while West Texas Intermediate (CL=F) futures climbed 0.7% to $63.06 a barrel. Donald Trump raised tensions on Wednesday, threatening "severe consequences" if Russian president Vladimir Putin does not agree to peace in Ukraine. While Trump did not specify the nature of these consequences, he warned of economic sanctions if the Alaska summit on Friday yields no breakthrough. "The uncertainty of US-Russia peace talks continues to add a bullish risk premium given Russian oil buyers could face more economic pressure," Rystad Energy said in a client note. Stocks: Create your watchlist and portfolio "How the Ukraine-Russia crisis resolves and Russia flows change could bring some unexpected surprises." Despite geopolitical tensions, oil prices were capped by a surprise increase in US crude inventories. According to the US Energy Information Administration (EIA), stockpiles rose by 3 million barrels during the week ending 8 August. Additionally, an IEA forecast predicting that global oil supply would grow more rapidly than expected in 2025 and 2026 weighed on prices. This is due to a rise in output from Opec and its allies, as well as increased production from outside the group. In equities, the FTSE 100 (^FTSE) was in the red on Thursday morning, down 0.3% to 9,135 points. For more details, on market movements check our live coverage here.
Yahoo
4 days ago
- Business
- Yahoo
Sterling hits one-month high as UK growth better than expected
Pound (GBPUSD=X, GBPEUR=X) The pound rose after the UK economy posted better-than-expected growth in the second quarter of the year. Sterling rose 0.1% against the dollar to $1.3583, the highest level seen in a month, and gained 0.2% versus the euro to €1.1618 as the stronger growth made interest rate cuts by the Bank of England less likely. ICAEW economics director Suren Thiru said: 'While these stronger than expected figures may not ease concerns among rate-setters over the health of the UK economy, a September interest rate cut remains implausible given mounting concerns over rising inflation.' The economy grew 0.4% month-on-month in June, snapping a run of negative prints — May was -0.1% — and beating expectations for a more subdued recovery of 0.1%. Read more: UK economic growth slows between April and June British output rose by 0.3% in the second quarter of 2025, the Office for National Statistics (ONS) said. That was higher than the 0.1% expected by economists polled by Reuters. The US dollar index ( which measures the greenback against a basket of six currencies, was near multi-week lows at 97.79. Gold (GC=F) Gold extended gains to a third session on Thursday morning, supported by growing expectations that the US Federal Reserve may cut interest rates in September, following subdued inflation data that also weighed on the dollar. At the time of writing, gold futures were muted at $3,409.40 per ounce, but spot gold inched up by 0.3% to $3,365.05 per ounce. "Markets are pricing in the chance that the Fed cuts 50 basis points in September. So, the dollar is weakening, gold is going up as a result, yields are also down," said Kyle Rodda, financial market analyst. "The technical setup of gold looks really constructive. The trend still looks higher. We just basically need to see the market break through $3,400 level on a sustained basis." Read more: FTSE 100 LIVE: Markets muted as Zelensky to meet Starmer before Trump-Putin summit Data released on Tuesday revealed that the US consumer price index (CPI) rose largely in line with expectations. Analysts noted that the full effects of tariff-driven price increases have yet to be reflected in the broader economy. The mild inflation data further strengthened the case for the Federal Reserve to lower its benchmark interest rate at its upcoming meeting. Markets place a 95% probability on a rate cut in September. Lower interest rates reduce the opportunity cost of holding non-yielding assets such as gold, making the metal more appealing to investors. Oil (BZ=F, CL=F) Oil prices climbed on Thursday as investors assessed the potential impact of the upcoming US-Russia summit on Ukraine, set for Friday. Markets are particularly focused on how the meeting might affect Russian crude flows, with secondary sanctions threatening Moscow's customers. However, a growing supply outlook kept oil's gains in check. Brent (BZ=F) crude futures rose 0.6% to trade at $66.04 per barrel, at the time of writing, while West Texas Intermediate (CL=F) futures climbed 0.7% to $63.06 a barrel. Donald Trump raised tensions on Wednesday, threatening "severe consequences" if Russian president Vladimir Putin does not agree to peace in Ukraine. While Trump did not specify the nature of these consequences, he warned of economic sanctions if the Alaska summit on Friday yields no breakthrough. "The uncertainty of US-Russia peace talks continues to add a bullish risk premium given Russian oil buyers could face more economic pressure," Rystad Energy said in a client note. Stocks: Create your watchlist and portfolio "How the Ukraine-Russia crisis resolves and Russia flows change could bring some unexpected surprises." Despite geopolitical tensions, oil prices were capped by a surprise increase in US crude inventories. According to the US Energy Information Administration (EIA), stockpiles rose by 3 million barrels during the week ending 8 August. Additionally, an IEA forecast predicting that global oil supply would grow more rapidly than expected in 2025 and 2026 weighed on prices. This is due to a rise in output from Opec and its allies, as well as increased production from outside the group. In equities, the FTSE 100 (^FTSE) was in the red on Thursday morning, down 0.3% to 9,135 points. For more details, on market movements check our live coverage here.
