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The Bank of England makes its latest decision today, which could have a massive impact on sterling.
It was a notably slow start to the week after last week’s frenzied moves. A slow trickle of economic data proved insufficient to really impact major currency pairings, particularly as more significant numbers will arrive later in the week.
A “wait and see” attitude prevailed across many markets on Monday. Even stock markets weren’t as active as usual, perhaps the result of an extremely boisterous session last time around.
US durable goods orders come in today, and traders clearly felt they had bigger fish to fry than concerning themselves with the small matters of Spanish PPI and government bond auctions that scrolled across the ticker.
The pound gained almost half a cent against the US dollar but traded flat against the euro. EUR/USD meanwhile picked up a marginal 0.25% in value.
As is usually the case on quiet days, the never-ending cycle of financial news turned its gaze to comments from central bankers. Lisa Cook of the Federal Reserve told the audience at a Harvard speech that inflationary risks are “moving into better balance”, echoing similar remarks made by Fed big cheese Jerome Powell.
US home sales came in under expectations in February. The latest data came in at an annualised 662,000, missing projections of 675,000 as higher mortgage costs feed into buying habits.
Donald Trump was the big talking point of the day in political circles, with a particular interest on how exactly he would pay a $464mn bond to pay his New York fraud settlement. As it transpired, Trump would instead argue that it was impossible for him to raise that money from insurance companies, leading the judge to reduce the amount payable (for now, at least) to $175mn and extend the deadline.
Boeing’s Dave Calhoun announced he would be stepping down as CEO. That comes after a turbulent period for the airline, which has been marked by high-profile accidents and safety concerns.
Fears are growing for the Port Talbot region following Tata Steel’s decision to close the blast factories at the South Wales factory. Various government and opposition members took to the airwaves yesterday to express concern that the area would suffer joblessness and economic contraction.
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GBP: Relief after bruising week
The tail end of last week was a tough time for anyone with a vested interest in sterling. It was therefore a relief to see the pound have an improved Monday, although it’s unlikely that the latest consensus on interest rates will help it anytime soon.
GBP/USD: the past year
EUR: Taking aim at tech
The European Commission has opened investigations into Apple, Alphabet and Meta under a new piece of legislation. The commission said it was looking into multiple potential breaches, including steering users to different app platforms and accepting payments for ad-free usage.
GBP/EUR: the past year
USD: Durable hope
There’s a lot riding on February’s durable goods orders. Should the number shoot up from last month as expected, it would signal the resilience in the American economy and probably boost the dollar. Should it fall under forecasts, expect pressure on the dollar as markets look to the Fed.
EUR/USD: the past year
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