Dear Reader,

 

Here is an overview of today's economic news and market action:

  • Subdued tone to investor sentiment continued yesterday …
  • UK rate hike expectations harden on the back of PMI/CPI inflation data …
  • UK rates now seen as peaking at 5.4%, up from 5% yesterday …
  • Sterling boosted by firmer UK rates …
  • Sees EUR/GBP trading down near the midpoint of 86-87p …
  • GBP/USD is at the halfway mark of $1.24-1.25 …
  • EUR/USD is back below $1.08 …
  • Later today, the Fed FOMC meeting minutes are due …
  • US debt ceiling negotiations will also be in focus …
 
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Today's Opening FX Rates
 
      % Change
      Day* End 2021
EUR/USD 1.0776   -0.31 0.69
EUR/GBP 0.8655   -0.41 -2.14
GBP/USD 1.2446   0.09 2.89
GBP/EUR 1.1545   0.42 2.18
*versus Previous Day's European Open

 
 
 
Weekly Market View
 

UK Economy Down, But Not Out

 

The Bank of England’s (BoE) latest set of detailed economic forecasts show it is no longer expecting a recession in the UK. The forecasts are contained in its quarterly Monetary Policy Report for May 2023.
 
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Weekly Market Brief: 22-26 May
 

Life in the old buck yet

 

The dollar was in the ascendancy from mid-2021 through to autumn 2022 as hikes in US interest rates, rising US bond yields and elevated geo-political tensions drove the currency to twenty year highs
 
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Forex and Interest Rate Outlook - May 2023
 

Economic data have generally surprised to the upside year-to-date, though GDP growth was sluggish in Q1. Tighter credit and lending conditions could weigh on activity as year progresses.
 
Read More