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iPath GBP/USD Exchange Rate ETN (GBB)

- NYSEARCA
  • Thu, Feb. 12, 7:29 AM
    • The pound (NYSEARCA:FXE) popped more than 100 pips in minutes about two hours ago after the Bank of England's quarterly inflation report forecast inflation returning to above the 2% target level in three years.
    • Speaking at a press conference, Governor Mark Carney says the bank will look through the current slump in energy prices, making the next move in monetary policy a rate hike.
    • Europe is rallying today on a Ukraine cease-fire deal, but the FTSE (NYSEARCA:EWU) isn't participating, up just 0.1%. The pound is higher by 0.8% to $1.5349.
    • ETFs: FXB, EWU, GBB, EWUS, FKU, DXPS, DBUK, QGBR
    | 1 Comment
  • Oct. 17, 2014, 3:54 AM
    • The Bank of England's chief economist, Andrew Haldane, has said that the BOE might need to maintain interest rates at a record low of 0.5% for longer than expected, due to the stuttering global economy, and financial and political risks.
    • Saying that the U.K. economy is "writhing in both agony and ecstasy," Haldane fears that Britain could slip into "secular stagnation," or a long period of poor growth.
    • The pound is -0.2% after dropping sharply and then recovering a bit, while the FTSE 100 is +0.8%.
    • ETFs: FXB, EWU, GBB, EWUS, FKU, DXPS, DBUK, QGBR
    | Comment!
  • Oct. 14, 2014, 4:56 AM
    • U.K. CPI was flat on month in September, down from +0.4% in August and below forecasts of +0.2%.
    • On year, inflation dropped to a five-year low of 1.2% from 1.5% and missed consensus of +1.4%.
    • Core inflation +1.5% on year vs +1.9% previously and predictions of +1.8%.
    • "Falls in transport costs (notably sea fares and air fares) and prices for a range of recreational goods provided the largest contributions to the slowdown in the rate of inflation between August and September," the U.K.'s Office for National Statistics says. (PR)
    • Factory output prices (PPI) stayed at -0.1% on month, as expected. (PR)
    • "Inflation falls much faster than expected...kiss goodbye to a U.K. rate hike any time soon," tweets Reuters' James McGeever.
    • The pound adds to its losses and is -0.7% at $1.5974, while the FTSE 100 is -0.5%.
    • Earlier: U.K. retail sales tumble
    • ETFs: FXB, EWU, GBB, EWUS, FKU, DXPS, DBUK, QGBR
    | Comment!
  • Sep. 8, 2014, 7:22 AM
    • For the first time a majority of voters favor Scottish independence (47% vs. 45% against), according to a weekend poll. The vote is set for September 18.
    • A yes vote, says SocGen's Kit Juckes, "would increase moves for secession across Europe, increase the momentum for the U.K. to leave the EU and hurt Scottish economic growth potential." He reckons it could take the pound down by perhaps another 5%.
    • Sterling is lower by 1.25% vs. the dollar to $1.6119, its weakest in nearly a year. It's down a similar amount vs. the euro. The FTSE is also a laggard to the downside this morning, down 1.1%.
    • Pound ETFs: FXB, GBB
    • British equity ETFs: EWU, EWUS, FKU, DXPS, DBUK, QGBR
    | Comment!
  • Aug. 19, 2014, 7:29 AM
    • July inflation slowed to 1.6% from June's 1.9% and against forecasts for 1.8%, according to the Office for National Statistics. Retail-price inflation - the gauge used as a basis for inflation-linked bonds - slowed to 2.5% in July from 2.6%.
    • The pound tumbled about 60 pips on the news and is now off 0.5% on the session at $1.6640.
    • ETFs: FXB, GBB
    | Comment!
  • Aug. 13, 2014, 7:23 AM
    • In its quarterly inflation report, the Bank of England halved its forecast for wage growth this year to 1.25%.
    • Expectations had been for the bank to begin hiking rates later this year or early next, but officials signaled the weak wage growth could forestall any such move. "In light of the heightened uncertainty about the current degree of slack, the committee noted the importance of monitoring the expected path of costs, particularly wages, in assessing inflationary pressure."
    • Sterling is lower by 0.6% to $1.6706.
    • ETFs: FXB, EWU, GBB, EWUS, FKU, DXPS, DBUK, QGBR
    | Comment!
  • Jul. 15, 2014, 10:31 AM
    • U.K. inflation climbed 1.9% on year in June from 1.5% in May.
    • Core inflation +2% on year vs +1.6%.
    • "The largest contributions to the rise in the rate came from the clothing, food & non-alcoholic drinks and air transport sectors," the statistics office says. There were no large downward effects to offset the change." (PR)
    • Factory output prices (PPI) fell -0.2% vs -0.1% (PR)
    • The pound is +0.5% at $1.7161, while the FTSE 100 is -0.3%.
    • ETFs: FXB, EWU, GBB, EWUS, FKU, DXPS, DBUK
    | Comment!
  • Jul. 8, 2014, 11:03 AM
    • Data from the Office for National Statistics has shown that U.K. manufacturing output fell 1.3% during May, the first drop since November last year and the biggest decline since January 2013. On the year, manufacturing output rose 3.7%, and has grown for nine consecutive months.
    • Industrial production fell 0.7% in May from April, the largest drop since August of last year. Industrial production grew 2.3% on the year, and has now grown for nine months.
    • The monthly falls in the industrial sector aren't a sign of weakness in the economy, says the Office for National Statistics, but rather it suggests a slowdown in the pace of growth among manufacturers in the second-quarter.
    • The British Chambers of Commerce's second-quarter economic survey also indicates a slower pace of growth in the manufacturing sector. Despite the slowdown, the BCC did not make changes to its GDP forecast of 0.8% for Q2 and 3.1% for the year, and warned the Bank of England not to raise interest rates to protect growth recovery.
    • ETFs: FXB, EWU, GBB, EWUS, FKU, DXPS, DBUK
    | Comment!
  • Jul. 1, 2014, 7:21 AM
    • The pound is up to new multiyear highs at $1.7139 after the U.K. PMI unexpectedly rises to 57.5 in June from 57 the previous month. Forecasts were for a dip to 56.8. The New Orders subindex rose to 61 from 59.5%. The FTSE 100 is ahead 0.5%.
    • Markit's Rob Dobson: "With levels of production surging higher, and order books swollen by a further upswing in demand from both domestic and overseas clients, job creation accelerated to its highest for over three years."
    • ETFs: FXB, EWU, GBB, EWUS, FKU, DXPS, DBUK
    | Comment!
  • Jun. 19, 2014, 11:30 AM
    • The central banks of the U.S. and U.K. are not quite on diverging paths, but the Bank of England is clearly the more hawkish at the moment, and cable continues to respondup 0.3% on the session to $1.7047.
    • Earlier this month BoE Governor Carney began prepping markets for a rate hike before the end of the year, while the Fed - not backing off its prediction of rate hikes to start mid-year 2015 - continues asset purchases and still frets about the labor market.
    • Cable was trading at less than $1.50 about a year ago when Mark Carney took over at the BoE amid market expectations of more dovish policy. They got that one wrong.
    • ETFs: FXB, GBB
    | Comment!
  • Jun. 13, 2014, 7:54 AM
    • Short Sterling futures have priced in a 25 basis point hike in British interest rates before year-end following Mark Carney's suggestion yesterday that a rate boost could come sooner than markets expect. The market has also priced in 25 basis point boosts for each quarter of 2015.
    • Looking at U.S. rates, the long-end of the Treasury curve didn't react to Carney's unexpected hawkishness, but the short end is a different story, with the 3-year Treasury yield up 5.5 basis points to 0.952%, the highest since May 2011. Looking at Eurodollar futures, the timing of the Fed's first hike was nudged forward a bit to about April of next year.
    • ETFs: SHY, IEF, PST, IEI, TYO, DTYS, BIL, STPP, UST, SHV, TBX, VGIT, FLAT, VGSH, SCHO, GSY, ITE, DTYL, SCHR, TYD, SST, TUZ, DTUL, DTUS, TBZ, FIVZ, DFVL, DFVS, TYNS
    • The pound (FXB) continues to gain, +0.3% today to $1.6954. In their first reaction to Carney's speech, equity investors sell, with the FTSE 100 -1.1%.
    • ETFs: FXB, EWU, GBB, EWUS, FKU, DXPS, DBUK
    • Previously: Sterling spikes on hawkish Carney comments
    | Comment!
  • Jun. 12, 2014, 4:25 PM
    • "There's already great speculation about the exact timing of the first rate hike and this decision is becoming more balanced," says Carney in the annual Mansion House Speech. "It could happen sooner than markets currently expect."
    • The previous line is good for about an 80 pip spike in cable, now buying $1.6909, more or less its highest level since the financial crisis.
    • ETFs: FXB, EWU, GBB, EWUS, FKU, DXPS, DBUK
    | Comment!
  • May. 21, 2014, 5:25 AM
    • The BOE's minutes take on a bit more of a hawkish tone, indicating that some policy makers are moving closer to voting for an increase in interest rates, although all of them first want the slack in the U.K. economy to ease.
    • The minutes come after BOE Governor Mark Carney said last week that the economy had "edged closer" to a need for a rate rise. He has also identified the housing market, where prices have been rising sharply, as a major threat to stability.
    • The pound is +0.4% at $1.6913, while the FTSE is +0.1%. (PR)
    • Previous coverage
    • ETFs: FXB, EWU, GBB, EWUS, FKU, DXPS, DBUK
    | Comment!
  • May. 21, 2014, 4:42 AM
    • U.K. retail sales grew at the quickest rate since May 2004 in April, jumping +6.9% on year vs +4.8% in March and beating consensus of +5.2.
    • On month, sales +1.3% vs +0.5% and consensus that was also +0.5%.
    • Excluding fuel, sales +1.8% vs +0.1% and +0.5%; on year, sales +7.7% vs +4.9% and +5.3%.
    • While the U.K. government will probably welcome the figures, the data may place a doubt on hopes of shifting the economy away from consumption. (PR)
    • Meanwhile, the Bank of England's Monetary Policy Committee voted unanimously, as expected, to keep interest rates at 0.5% and against more quantitative easing at a meeting earlier this month, the minutes of the meeting show. (PR)
    • The pound jumps and is +0.4% at $1.6913, while the FTSE is -0.2%.
    • ETFs: FXB, EWU, GBB, EWUS, FKU, DXPS, DBUK
    | Comment!
  • Mar. 27, 2014, 5:42 AM
    • U.K. retail sales +1.7% on month in February vs -2% in January and consensus of +0.5%. On year, sales +3.7% vs +3.9% and +2.5%.
    • Excluding fuel, sales +1.8% on month vs -2% and +0.3%; on year, sales +4.2% vs +4.4% and +2.8%.
    • The pound jumps and is +0.25% at $1.6622, while the FTSE is -0.3%. (PR)
    • ETFs: FXB, EWU, GBB, EWUS, FKU, DXPS, DBUK
    | Comment!
  • Mar. 19, 2014, 3:39 PM
    | Comment!
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GBB Description
The GBP/USD exchange rate is a foreign exchange spot rate that measures the relative values of two currencies, the British pound and the U.S. dollar. When the British pound appreciates relative to the U.S. dollar, the GBP/USD exchange rate (and the value of the Securities) increases; when the British pound depreciates relative to the U.S. dollar, the GBP/USD exchange rate (and the value of the Securities) decreases. The GBP/USD exchange rate is expressed as a rate that reflects the number of U.S. dollars that can be exchanged for one British pound in the interbank market for settlement in two days. Effective December 18, 2008 the GBP/USD exchange rate will be the rate reported each day on Bloomberg screen GBPUSD WMCO Curncy <GO> at approximately 4:00 p.m., London time, or any successor page.
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