The US dollar has risen against the euro and the pound even though policy rate differentials have been very stable, particularly with respect to the UK.
Currency investors probably won’t have the patience to buy sterling now in anticipation of what may turn out to be false hopes, but it is still an issue to look out for....
If the UK government delivers tax cuts that both lift growth prospects now and reduce Labour’s room for manoeuvre after polling day, then many might see that as...
There has been some talk recently that political parties vying to win this year’s UK election could propose the sort of fiscal largesse that rekindles memories of the...
Fixation with the performance of the US dollar is understandable given the dominance of the greenback in areas such as currency trading, reserve holding, trade invoicing...
With data seemingly dictating an end to rate hikes from the ECB and BoE, it seems reasonable to assume that both the euro and the pound will weaken significantly.
UK wage data was pretty shocking. It has raised speculation that the Bank of England could have to go further than previously expected when it comes to base rate hikes.
In the UK, it had seemed for a long time that politics did not matter very much when it came to the performance of financial assets such as gilts and the pound.
Many analysts have been quite optimistic for the pound this year. But while this view seems to be playing out, there are aspects of what’s been happening recently that...
The pound has been lifted by Monday’s agreement between the UK and EU that rids the pair of the hated Northern Ireland protocol (or at least moulds it into a shape...
UK Chancellor Hunt promised a "tough" autumn statement last week. But it only becomes tough after two years, and that’s when the Conservatives will likely be out of...
It is going to be a long way back for sterling to recapture the lost ground because policymakers’ credibility has been shot to pieces.
Nobody seems to believe in the UK government’s view that it can get growth to 2.5% and keep it there.
Former US Treasury Secretary Larry Summers said recently that the UK’s disastrous mini budget could prove to be one of the “worst macroeconomic policies of any major...
After a period of relative stability through the summer months, it looks as if volatility is returning again. The dollar and other “safe” currencies will probably be the...
UK CPI inflation hit its highest in 40 years in July and the country has the rather unwelcome accolade of being among the first developed countries to reach double...
The dollar remains strong and, when trying to explain this, a lot of focus is put on monetary policy and rate differentials, as if relatively high US rates suck capital...
Sterling (GBP) has not had a great year so far, but it could still get a lot worse.
The pound rose slightly after Mr. Boris Johnson said he would resign as Britain’s Prime Minister. Will the pound keep rising?
There’s little doubt that the pound could prove vulnerable once again if trade continues to slump and global investment flows stall.
The pound has been very stable in trade-weighted terms since the EU referendum slump in 2016. But is this deserved?
It still looks very likely that the UK economy will fall into recession, or at least experience a period of extremely weak growth, despite the government’s GBP15bn...
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