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Wednesday, May 22, 7:19 AM
The IMF calls for more forceful action on monetary policy in its latest report on the U.K. The agency is likely to get its wish with the only thing seemingly holding back the BOE from easier policy being a wait for a new sheriff to arrive (Mark Carney in July). On fiscal policy, the IMF says take it easy on austerity, suggesting a corporate tax cut paid for by broadening the VAT tax base. Excuse me? Already lower on the session, cable (FXB) snores through the report. The FTSE (EWU) is flat, continuing at a 12-year high.
Comment![Global & FX, Breaking News]
Wednesday, May 22, 5:04 AM
Minutes from the Bank of England's latest policy meeting show the committee's vote to keep rates unchanged was unanimous while three out of nine members (including Mervyn King) voted to increase the size of the central bank's asset purchases by £25B. Sterling (FXB) moves 0.44% lower against the greenback to 1.5094.
Comment!
Tuesday, May 21, 5:09 AM
Inflation in the U.K. rose just 2.4% in April, a seven month low and down from 2.8% in March. Economists were expecting a reading of 2.6%. Core inflation came in at 2%, the lowest level in three-and-a-half years. Some economists now say consumer price increases may peak at 3% this summer rather than the forecasted 3.5%, and note that inflation may hit the Bank of England's 2% target by H1 2015. Sterling (FXB) declined against the dollar following the news, falling 0.54% to 1.517.
Comment![Global & FX]
Friday, May 17, 9:38 AM
Did the Fed tighten while we were getting a cup of coffee? The greenback is soaring against all other currencies, with the dollar bull ETF (UUP) gaining 0.6% - an unusually large move for that vehicle. Strength against the yen (FXY -0.3%) and the aussie (FXA -0.9%) are givens of late, but the greenback is up about 1% vs. both the loonie (FXC) and the swissie (FXF), and about 0.6% vs. the euro (FXE) and cable (FXB). Getting hit are Treasurys (TLT -0.5%), the dollar bear ETF (UDN -0.6%) and of course, gold (GLD -0.7%).
5 Comments[Global & FX]
Wednesday, May 15, 8:24 AM
The euro (FXE) falls 0.5% against the dollar after reports indicate France slipped into recession during Q1 and data out of Germany shows the eurozone's largest economy narrowly avoided a similar fate. Meanwhile, sterling (FXB) retraces earlier gains (posted after BOE's Mervyn King sounded an upbeat tone on the prospects for the U.K. economy) to trade flat against the greenback.
Comment!
Thursday, May 9, 3:06 PM
The dollar (UUP +1%) is soaring across the board (not just against the yen, where it's now spiked through ¥100 to ¥100.56). The greenback is threatening parity vs. the aussie (FXA -1.1%) for the first time since last summer, and the euro (FXE -1.1%), swissie (FXF -1.4%), loonie (FXC -0.5%), and pound (FXB -0.6%) are seeing sizable declines as well. Commodities? Red. Gold (GLD -1.1%), Silver (SLV -1.2%), Oil (USO -0.6%), Copper (JJC -0.8%).
5 Comments[Global & FX, Commodities, On the Move]
Thursday, May 9, 7:05 AM
Already higher ahead of the BOE policy decision, sterling (FXB) tacks on about 20 pips as a few traders were likely short on the possibility the bank surprised by re-launching its asset purchase program. The pound +0.3% at $1.5578. The FTSE (EWU) remains as it was, flat on the session.
Comment![Global & FX]
Monday, April 29, 3:09 PM
Excitement for shorting the yen (FXY) has cooled among BAML's hedge fund clients, according to the firm's latest Macro Monitor. More or less a one-way trade for many months, the dollar hit a ceiling of ¥100 earlier this month and has fallen back (currently ¥98). Another popular short, the British Pound (FXB) has been costing traders money and forcing them to cover, a trend BAML suggests isn't fully played out.
Comment![Global & FX]
Thursday, April 25, 4:37 AM
U.K. Q1 GDP +0.3% M/M vs -0.3% in Q4 and consensus of +0.1%; on year, +0.6% vs +0.2% and +0.3%. The pound (FXB) spikes as the U.K. avoids a triple-dip recession, and is +0.9% vs the dollar, although the FTSE remains lower at -0.3%. (PR)
1 Comment[Global & FX, Top Stories, Breaking News, On the Move]
Wednesday, April 24, 12:21 PM
Fitch follows up on its downgrade of the U.K. by cutting the Bank of England to AA+ from AAA. "While central banks have unlimited capacity to create base money ... the profit from money creation is limited and typically channelled to the government. This reinforces the close link between the central bank and the sovereign ratings." Earlier Fitch stripped 3 Oxford colleges of their AAA. Cable (FXB) snoozes, up a few pips to $1.5250.
Comment![Global & FX, Breaking News]
Monday, April 22, 11:47 AM
The FTSE sports the slightest of hangovers, losing 0.1% (EWU -0.1%) as the rest of Europe (FEZ +0.5%) moves higher following Friday's post-close credit rating downgrade of the U.K. The news is a snoozer in the Gilt market, the 10-year yield falling 2 bps to 1.65%. Cable (FXB +0.2%) had given up some ground Friday afternoon, but gained it back today.
Comment![Global & FX]
Friday, April 19, 12:28 PM
"This is a stark reminder that the U.K. cannot simply run away from its problems," says the U.K. Treasury, responding to the Fitch downgrade. "Though it is taking time, we are fixing this country's economic problems." Cable's (FXB -0.3%) taking on a little more water now vs. the greenback, but the slide vs. the euro (FXE) today is a bit more dramatic.
1 Comment[Global & FX, Breaking News]
Friday, April 19, 12:11 PM
The U.K. loses its AAA credit rating from Fitch, the agency downgrading to AA+ with stable outlook. The move is somewhat expected given Fitch had placed the country on negative watch a month ago. "The downgrade ... primarily reflects a weaker economic and fiscal outlook." Already lower on the session, cable sheds a few more pips, FXB -0.2%.
7 Comments[Global & FX]
Wednesday, April 17, 4:40 AM
The Bank of England's Monetary Policy Committee again voted unanimously to keep interest rates at 0.5% at a meeting earlier this month and 6-3 against more quantitative easing, the minutes show. As in February and March, Governor Mervyn King was among those wanting the bank to increase the program by another £25B to £400B. The pound, which was already lower, is -0.3% vs dollar. (PR)
Comment![Breaking News, Global & FX, Top Stories]
Tuesday, April 9, 5:01 AM
U.K. trade deficit in goods widens to £9.42B in February from £8.17B in January and vs consensus of £8.55B; total trade deficit widens to £3.64B from £2.49B. Exports -1.1% M/M, imports +1.7%. The largest drop in exports was in goods to non-EU countries (4.7%). Following trade and industrial production data, pound is +0.4% vs the dollar, while the FTSE pairs earlier gains and is +0.4%. (PR)
Comment![Global & FX]
Friday, April 5, 12:31 PM
The U.K. holds onto its AAA rating from S&P, but the outlook remains negative, meaning a one-in-three chance of a downgrade during the next two years. "We could lower the rating if we were to conclude that the pace and extent of fiscal consoldiation has slowed beyond what we currently expect." Cable (FXB) snoozes through the news, remaining +0.6%.
Comment![Global & FX, Breaking News]
Cliff Wachtel US JOBS REPORTS have big ramifications 4 markets, especially the USD. see latest instablog for more & how to profit UUP, FXE, FXB, EUO FXJ
4/1/11
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Cliff Wachtel GBP up 2nd day on strong retail report Friday, hawkish MPC words,Bean 3rd hawk? -Feb 23 MPC meeting next big test Long GBP, its ETF (FXB)
2/18/11
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Cliff Wachtel Bank of England dovish despite inflation, USDGBP bias lower, 1.6175 key daily resistance bias SHORT FXB, binary option bias to puts
2/16/11
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Cliff Wachtel rally just a bounce-wait 4 end as S&P 500 hits 1130-70 zone-3%-6% max left-see new posts-then short stox, risk fx SPYFXAFXEAUNZFXB etc