Dear Reader,

 

Today's overview of economic news and market action:

  • Risk averse tone to investor sentiment continued yesterday …
  • Market rate hike expectations firmed amid elevated UK inflation …
  • However, the euro was in the ascendancy on currency markets …
  • Sees EUR/USD open in the top half of $1.09-1.10 …
  • EUR/GBP is operating above the 86p threshold …
  • GBP/USD is at the midpoint of $1.27-1.28 …
  • Today, main focus will be the BoE meeting …
  • Market expectations are currently split down the middle between a 25 or 50bps hike …
 
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Today's Opening FX Rates
 
      % Change
      Day* End 2021
EUR/USD 1.0982   0.62 2.62
EUR/GBP 0.8609   0.68 -2.66
GBP/USD 1.2755   -0.06 5.44
GBP/EUR 1.161   -0.67 2.73
*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
 
Weekly Market View
 

ECB Sticks to the Tightening Script

 

The Euro area economy has lost considerable momentum since last summer. GDP fell by 0.1% in the final quarter of 2022 and again in the opening quarter of 2023, with the economy thus entering a technical recession. 
 
Read More