Latest news with #sterling
Bloomberg
16-07-2025
- Business
- Bloomberg
Pound Risks Worst Run in a Decade Ahead of Key Labor Market Data
The pound headed for its longest slide in a decade as traders looked ahead to key labor market data that could bolster the case for interest-rate cuts. Sterling slipped 0.1% against the dollar in its ninth day of losses, taking it to a two-month low of $1.3365. The currency shrugged off mild gains earlier on Wednesday that came after hotter-than-expected UK consumer-price data.
Yahoo
16-07-2025
- Business
- Yahoo
Pound rises after UK inflation blow
The value of the pound rose in early European trading after an unexpected jump in UK inflation, which complicates the picture for the Bank of England at its next meeting on interest rates. Sterling was up 0.2% against the dollar at $1.3408, although it remained flat against the euro, which was worth 86.7p. David Morrison, analyst at Trade Nation, said: 'Once again, the UK inflation numbers are going in the wrong direction. 'Sterling jumped on the news suggesting that the Bank is going to struggle to justify a rate cut next month.' The annual inflation rate in the UK unexpectedly rose to 3.6% in June from 3.4% in May on higher transport prices, particularly fuel. Read more: UK inflation unexpectedly rises in June on higher fuel prices The Bank of England is still expected to cut interest rates in August but analysts said the case is weakening after the latest inflation figures. Guy Foster, strategist at RBC Brewin Dolphin, said: 'This was unhelpful news for the Bank of England, which wants to cut interest rates to support growth. 'If interest rates don't come down, the government interest bill will be higher and the pressure for higher taxes will become more acute.' The US dollar index ( which tracks the greenback's value against six major currencies, was down by around 0.2% to 98.45 at the time of writing. Gold prices edged higher on Wednesday as a weakening US dollar and easing bond yields provided support, while investors weighed fresh inflation data and continued uncertainty over US trade policy. Gold futures were 0.3% higher at $3,345.80 an ounce, while spot gold was just above the flatline at $3.339.95 per troy ounce after touching a three-week high of 3,385.90 earlier this week. "Many countries are still negotiating with the US on the tariffs. There are still a lot of uncertainties in the market and many are looking for safe havens," Brian Lan, managing director at GoldSilver Central, Singapore, told Reuters. Read more: Bank of England governor warns tariff hikes risk 'fragmenting the world economy' The latest US inflation report, released on Tuesday, showed consumer prices increased in June by the most in five months, driven by higher costs for a range of goods. The data suggests tariffs are beginning to feed through to consumer prices, which could complicate the Federal Reserve's path on interest rates. Despite the uptick in inflation, US president Donald Trump repeated his call for lower borrowing costs, insisting that 'consumer prices were low and the Fed should bring down interest rates now.' Trade tensions remained in focus after Trump threatened on Saturday to impose a 30% tariff on imports from Mexico and the European Union starting 1 August. By Monday, however, the president signalled openness to further negotiations, injecting a dose of uncertainty into already volatile markets. Oil prices rose on Wednesday morning, buoyed by expectations of firm summer demand from the US and China, the world's two largest consumers, though broader concerns over the global economic outlook kept gains in check. Brent (BZ=F) crude rose 0.3% to trade at $68.90 a barrel, while West Texas Intermediate (CL=F) climbed 0.5% to $66.82. Major oil producers have pointed to signs of improving economic momentum in the second half of the year, with recent data from China indicating steady growth. 'Strong seasonal demand is currently providing upward momentum to oil prices, as summer travel and industrial activity peak,' analysts at LSEG said in a note. 'Increased gasoline consumption, especially in the US during the Fourth of July holiday period, has signalled robust fuel demand, helping offset bearish pressures from rising inventories and tariff concerns.' Stocks: Create your watchlist and portfolio However, analysts cautioned that recent price action may reflect technical factors more than fundamental shifts. 'Much of the steadying of crude markets after two volatile sessions resulted from a mild technical correction rather than any significant shift in underlying fundamentals,' said Priyanka Sachdeva, senior market analyst at Phillip Nova. She added: 'Investors should monitor inflation and interest rate expectations in the United States as Trump's continued push for broader tariffs could be inflationary and could dampen fuel demand in the medium term.' In equities, the FTSE 100 (^FTSE) was muted at 8,940 points after climbing over 9,000 points for the first time ever in the previous session.
Yahoo
16-07-2025
- Business
- Yahoo
Pound rises after UK inflation blow
The value of the pound rose in early European trading after an unexpected jump in UK inflation, which complicates the picture for the Bank of England at its next meeting on interest rates. Sterling was up 0.2% against the dollar at $1.3408, although it remained flat against the euro, which was worth 86.7p. David Morrison, analyst at Trade Nation, said: 'Once again, the UK inflation numbers are going in the wrong direction. 'Sterling jumped on the news suggesting that the Bank is going to struggle to justify a rate cut next month.' The annual inflation rate in the UK unexpectedly rose to 3.6% in June from 3.4% in May on higher transport prices, particularly fuel. Read more: UK inflation unexpectedly rises in June on higher fuel prices The Bank of England is still expected to cut interest rates in August but analysts said the case is weakening after the latest inflation figures. Guy Foster, strategist at RBC Brewin Dolphin, said: 'This was unhelpful news for the Bank of England, which wants to cut interest rates to support growth. 'If interest rates don't come down, the government interest bill will be higher and the pressure for higher taxes will become more acute.' The US dollar index ( which tracks the greenback's value against six major currencies, was down by around 0.2% to 98.45 at the time of writing. Gold prices edged higher on Wednesday as a weakening US dollar and easing bond yields provided support, while investors weighed fresh inflation data and continued uncertainty over US trade policy. Gold futures were 0.3% higher at $3,345.80 an ounce, while spot gold was just above the flatline at $3.339.95 per troy ounce after touching a three-week high of 3,385.90 earlier this week. "Many countries are still negotiating with the US on the tariffs. There are still a lot of uncertainties in the market and many are looking for safe havens," Brian Lan, managing director at GoldSilver Central, Singapore, told Reuters. Read more: Bank of England governor warns tariff hikes risk 'fragmenting the world economy' The latest US inflation report, released on Tuesday, showed consumer prices increased in June by the most in five months, driven by higher costs for a range of goods. The data suggests tariffs are beginning to feed through to consumer prices, which could complicate the Federal Reserve's path on interest rates. Despite the uptick in inflation, US president Donald Trump repeated his call for lower borrowing costs, insisting that 'consumer prices were low and the Fed should bring down interest rates now.' Trade tensions remained in focus after Trump threatened on Saturday to impose a 30% tariff on imports from Mexico and the European Union starting 1 August. By Monday, however, the president signalled openness to further negotiations, injecting a dose of uncertainty into already volatile markets. Oil prices rose on Wednesday morning, buoyed by expectations of firm summer demand from the US and China, the world's two largest consumers, though broader concerns over the global economic outlook kept gains in check. Brent (BZ=F) crude rose 0.3% to trade at $68.90 a barrel, while West Texas Intermediate (CL=F) climbed 0.5% to $66.82. Major oil producers have pointed to signs of improving economic momentum in the second half of the year, with recent data from China indicating steady growth. 'Strong seasonal demand is currently providing upward momentum to oil prices, as summer travel and industrial activity peak,' analysts at LSEG said in a note. 'Increased gasoline consumption, especially in the US during the Fourth of July holiday period, has signalled robust fuel demand, helping offset bearish pressures from rising inventories and tariff concerns.' Stocks: Create your watchlist and portfolio However, analysts cautioned that recent price action may reflect technical factors more than fundamental shifts. 'Much of the steadying of crude markets after two volatile sessions resulted from a mild technical correction rather than any significant shift in underlying fundamentals,' said Priyanka Sachdeva, senior market analyst at Phillip Nova. She added: 'Investors should monitor inflation and interest rate expectations in the United States as Trump's continued push for broader tariffs could be inflationary and could dampen fuel demand in the medium term.' In equities, the FTSE 100 (^FTSE) was muted at 8,940 points after climbing over 9,000 points for the first time ever in the previous session.
Yahoo
14-07-2025
- Business
- Yahoo
Pound hits three-week low as Bank of England governor hints at interest rate cut
The pound slipped to a three-week low on Monday after Bank of England governor Andrew Bailey signalled the central bank could make more substantial interest rate cuts if the labour market weakens further. Sterling fell 0.2% to $1.3467 in morning trading, its lowest level since 23 June, as investors digested Bailey's remarks that "slack" was beginning to open up in the UK economy. The pound was flat against the euro at €1.1541. Bailey told The Times: 'I really do believe the path is downward' for interest rates. Bank rate is currently 4.25%, following four quarter-point cuts in the last year, with the Bank next scheduled to set rates on 7 August. Bailey added: 'If we saw the slack opening up much more quickly, that would lead us to a different conclusion. 'I think the path [for interest rates] is down. I really do believe the path is downward but we continue to use the words 'gradual and careful' because … some people say to me, 'Why are you cutting when inflation's above target?'" Read more: FTSE 100 LIVE: FTSE up and European markets dip amid fresh Trump tariff threats Bailey's comments come amid increasing market speculation that slowing wage growth and moderating inflation could give the central bank scope to accelerate its easing cycle. The US dollar index ( which tracks the greenback's value against six major currencies, was muted at 97.88 at the time of writing. In other currency moves, the pound was flat against the euro, trading at €1.1541 at the time of writing. Oil prices edged higher on Monday, building on gains of more than 2% from the previous session, as traders weighed the prospect of further US sanctions on Russia against signs of increased Saudi production and renewed global trade tensions. Brent crude (BZ=F) climbed 0.8% to trade at $70.92 a barrel, while West Texas Intermediate (CL=F) gained a bit over 1% to $69.21. Prices found support from signs that Washington may tighten pressure on Moscow over its war in Ukraine. US president Donald Trump on Sunday pledged to send Patriot air defence systems to Ukraine, amid intensifying Russian bombardment of urban areas. He is expected to make a 'major statement' on Russia on Monday. Trump has grown increasingly frustrated with Russian president Vladimir Putin over the lack of progress in peace talks and the continuing escalation of attacks on Ukrainian cities. Read more: Chinese EVs take off in the UK as BYD closes in on Tesla A bipartisan bill in Congress aimed at imposing further sanctions on Russia gained traction last week but has yet to secure Trump's full backing. The measure is seen as an attempt to bring Moscow to the negotiating table in good faith. However, gains in oil were capped by reports of increased output from Saudi Arabia, the world's largest crude exporter, as well as fresh trade concerns sparked by the US president's comments over the weekend. Trump raised the possibility of new tariffs on the European Union and Mexico, reviving worries over a potential flare-up in global trade disputes. These developments injected uncertainty into the demand outlook for crude. Meanwhile, speculation that the Federal Reserve may ease monetary policy added further support to oil prices. Expectations of lower interest rates have weighed on the US dollar, making commodities priced in the currency more attractive and potentially lifting demand. Gold prices climbed on Monday, supported by renewed safe-haven demand after Trump threatened to impose sweeping new tariffs on imports from the European Union and Mexico, reigniting fears of escalating global trade tensions. Gold (GC=F) futures were 0.6% higher at $3,382.70 an ounce, while spot gold gained 0.4% to $3.372.24 per ounce after touching a three-week high of 3,385.90 earlier in the session. "We are seeing safe-haven demand coming back into the picture due to this uncertainty on the implementation of U.S. global trade tariffs policy," OANDA senior market analyst Kelvin Wong said. "Near-term outlook looks positive for gold and if gold prices are able to have a daily close above $3,360, it could potentially advance higher towards the next resistance level at $3,435." Stocks: Create your watchlist and portfolio The gains came after Trump on Saturday said the US would impose a 30% tariff on imports from Mexico and the EU starting 1 August, following weeks of stalled negotiations with both trading partners. The announcement marked a sharp escalation in trade rhetoric, raising concerns over global economic growth and stoking investor appetite for safe-haven assets. In response, officials from both the EU and Mexico criticised the proposed tariffs as unfair and disruptive. Brussels said it would maintain its suspension of retaliatory measures until early August, in a bid to keep diplomatic channels open and pursue a negotiated solution. In equities, the FTSE 100 (^FTSE) ticked higher, up 0.2% to 8,959.61 points. For more details follow our live coverage in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-07-2025
- Business
- Yahoo
Pound dips as UK GDP disappoints, tariff worries reverberate
The pound dipped against the dollar on Friday, as new data also showed that the UK economy shrank for a second month in a row, contracting by 0.1% in May according to new data from the ONS. "The disappointing monthly GDP number triggered a sell-off in sterling against both the US dollar and the euro," said David Morrison, senior market analyst at financial services provider, Trade Nation. Read more: FTSE 100 LIVE: London flat and Europe lower on renewed tariff threats for Canada and EU "Yet again, this is another poor piece of UK economic data which can only add to chancellor Rachel Reeves's woes. But it will be next month's quarterly growth lookback, which will be watched closely as investors consider the likelihood of the UK falling back into recession this year." The pound was just above the $1.35 mark, having rallied against the greenback in recent weeks. Traders also digested more movement in the ongoing push by the US to redefine its trading relationships. US president Donald Trump posted a letter to Canadian prime minister Mark Carney on his social media platform Truth Social, telling him that Canadian goods imported to the US would face a 35% tariff starting in August. In an interview with NBC News, Trump also floated 15% to 20% blanket tariffs on most trading partners, higher than the 10% level currently in effect. Investors had remained optimistic on Trump's shift in deadlines, which was originally set for this week, as the US continued to work on deals with major partners, including the EU, Canada, and India. Trump said the EU, in addition to Canada, would be receiving a letter "today or tomorrow." The pound also dipped against the euro, falling 0.2% to 1.158. Gold prices headed higher amid increased uncertainty about global tariffs and a flight to haven assets. Futures prices were trading up 0.5% at $3,342 per troy ounce. Spot prices, meanwhile were up 0.3% to trade around the $3,330 mark. The moves higher came in spite of a steadier dollar — a strong dollar can make buying gold more expensive. Oil prices searched for direction on Friday, steadying after a volatile few weeks. On Friday the International Energy Agency (IEA) said there may be cause for concern about tightness in the market. The IEA said that despite the fact that a supply and demand balance has been pointing to a surplus, there might be less oil available than once thought. Refineries have been ramping up processing to meet summer travel demand, according to Reuters. The IEA expects global supply to rise by 2.1 million barrels per day (bpd) this year, up 300,000 bpd from the previous forecast. World demand will rise by just 700,000 bpd, it said, implying a sizeable surplus. Read more: Trending tickers: Levi Strauss, Delta, Lynas, BIT Mining and BP "The decision by OPEC+ to further accelerate the unwinding of production cuts failed to move markets in a meaningful way given tighter fundamentals," the agency said in a monthly report. "Price indicators also point to a tighter physical oil market than suggested by the hefty surplus in our balances." Brent crude futures were slightly above the flatline, trading around $66.32 per barrel. West Texas Intermediate was up 0.1%, changing hands around the $66.65 mark. Read more: UK economy shrinks for second month in a row Robinhood doubles down on crypto with its own blockchain, 24/7 trading and tokenised stocks What could trigger a late summer crisis for markets in the third quarter?Sign in to access your portfolio
