Dear Reader,

 

Today's overview of economic news and market action:

  • Action on financial markets largely driven by central bank newsflow last week … 
  • Fed left policy on hold, while the ECB raised rates by 25bps … 
  • Meantime, UK rate hike expectations hardened on the back of elevated wage data … 
  • Against this backdrop, the dollar was under downward pressure …
  • This sees EUR/USD open up above the $1.09 mark …
  • GBP/USD is operating above $1.28, having started last week below $1.26 …
  • EUR/GBP is in the lower half of 85-86p …
  • Monetary policy spotlight turns to the BoE this week …
 
Continue Reading
 
Today's Opening FX Rates
 
      % Change
      Day* End 2021
EUR/USD 1.0937   0.00 2.20
EUR/GBP 0.8529   -0.34 -3.56
GBP/USD 1.2824   0.37 6.01
GBP/EUR 1.1721   0.34 3.69
*versus Previous Day's European Open

 
 
 
Weekly Market Brief: 19-23 June
 

ECB’s Strong Four-hand

 

The Euro area economy has lost considerable momentum since last summer.
 
Read More
 
ECB Watch - June 2023
 

ECB hikes rates by a further 25bps, but not done yet

 

As had been widely expected, the June meeting of the ECB’s Governing Council saw the central bank raise rates by a further 25bps, pushing the key deposit rate up to 3.5%.
 
Read More
 
Fed Watch - June 2023
 

Fed leaves rates unchanged, but a further hike seems likely

 

As had been widely expected, the Fed left US rates unchanged at the conclusion of its policy meeting yesterday, maintaining the target range for the funds rate at 5.0-5.25%.
 
Read More