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iPath GBP/USD Exchange Rate ETN (GBB)

- NYSEARCA
  • Tue, May 19, 6:15 AM
    • Annual consumer price inflation in the U.K. has fallen below zero for the first time since the 1960s, as the drop in food and energy prices depresses the cost of living.
    • Official data released on Tuesday showed that consumer prices fell 0.1% in April compared with the same month last year. Core inflation slowed to 0.8%, the lowest since 2001.
    • The pound is -0.8% at $1.5531, while the FTSE 100 is +0.3%.
    • ETFs: FXB, EWU, GBB, EWUS, FKU, DXPS, DBUK
    | 1 Comment
  • Fri, May 15, 7:43 AM
    • “In our negative- and low-yield world, it is the only major liquid currency with a significant yield other than the dollar," says Citi's Steven Englander, bullish on the pound (NYSEARCA:FXB) even if the Bank of England holds off on rate hikes until mid-2016 (as is currently priced in to interest rate futures).
    • “The surprise Conservative majority in the election removes the political risk of a hung parliament and sharp reversal of policy. Overweighting the pound gives you euro diversification with yields that are only a couple of basis points below dollar yields," says Englander.
    • ETFs: FXB, GBB
    | Comment!
  • Wed, May 13, 8:10 AM
    • Ideas that the Bank of England might hold off on rate hikes until as late as the middle of 2016 are reinforced after the Bank of England cuts its GDP growth forecast to 2.5% this year and 2.6% next year from 2.9% for both years.
    • In his press conference accompanying the bank's quarterly inflation report, Governor Mark Carney brought to center-stage his worries about poor productivity growth and inflation being lower for longer.
    • The pound has given up early gains, and is now lower by 0.15% vs. the dollar at $1.5643.
    • ETFs: FXB, EWU, GBB, EWUS, DXPS, FKU, QGBR, DBUK
    | Comment!
  • Mon, May 11, 7:54 AM
    • Current betting says the Bank of England will hold off on rate hikes until the middle of next year - especially after the conservative victory on Friday likely means tighter fiscal policy for longer. BOE chief Mark Carney has the opportunity to either endorse that dovish view or challenge it when he presents new economic forecasts on Wednesday, and holds a press conference.
    • Earlier, the BOE kept policy on hold, leaving the benchmark interest rate at 0.5%.
    • “Our hunch is that the market is a bit too relaxed about it all at the moment,” says an economist. “The bank was warning in February about a risk of an inflation overshoot and we don’t see that going away. The underlying trend is still for a recovery.”
    • The FTSE is up modestly today, as is cable.
    • ETFs: FXB, EWU, GBB, EWUS, DXPS, FKU, QGBR, DBUK
    | Comment!
  • Fri, May 8, 2:13 AM
    • David Cameron is on course to return to Downing Street with exit polls displaying a strong Conservative victory, but it was the Scottish National Party that made headlines - claiming most of the seats in Scotland.
    • U.K shares and currency markets reacted swiftly to the preliminary results, with sterling up 1.5% at $1.5467 and the FTSE 100 up 1.7%.
    • A Conservative win would likely also see the U.K. heading to the polls again in 2017, voting on whether or not to remain part of the EU.
    • ETFs: FXB, GBB, EWU, EWUS, DXPS, FKU, QGBR, DBUK
    | 1 Comment
  • Thu, May 7, 5:16 PM
    • Sterling has taken a late jump on exit polls from Great Britain showing the Tories have the largest number of Parliament seats coming out of today's election, despite earlier polls that showed a much closer race.
    • The pound moved to 1.5427 from 1.5250 on the news. It's a hung Parliament for the moment, but the conservatives are much closer to forming a majority government.
    • ETFs: FXB, GBB
    | Comment!
  • Tue, May 5, 12:23 PM
    • The bear case on cable is all the way down to $1.39, says Morgan Stanley's Ian Stannard, with a lot of that downside assuming a government can't be formed quickly after the polls.
    • He notes a "sense of urgency" thanks to the proximity of the financial crisis forced a coalition to be quickly put together after the 2010 election, but the parties this time are going to demand more.
    • Recent polling certainly indicates a hung parliament, meaning either the Tories or Labor would have to reach an agreement with smaller parties in order to lead.
    • The election is on Thursday.
    • ETFs: FXB, GBB
    | Comment!
  • Tue, Apr. 7, 4:50 AM
    • The U.K. services PMI jumped to a seven-month high of 58.9 in March from 56.7 in February, boosted by a stronger rise in new business.
    • The latest PMI surveys indicate that the economy grew 0.7% in Q1, says Markit, following a slowdown late last year.
    • "Faster growth of new business and improved expectations...bode well for the upturn to retain strong momentum," says Markit, adding that the "the lack of inflationary pressures" suggest that a first rate hike "remains some way off."
    • The pound sinks and is -0.3% at $1.4837, while the FTSE 100 is +1.2%. (PR)
    • ETFs: FXB, EWU, GBB, EWUS, FKU, DXPS, DBUK, QGBR
    | Comment!
  • Mon, Mar. 2, 5:58 AM
    • U.K. manufacturing growth hit a seven-month high in February as domestic strength offset weakness in Britain’s main export markets.
    • "This reinforces the picture of a broader growth revival in the U.K. so far in the opening quarter," said Markit's Rob Dobson, but warned that the upturn relied on the manufacture of consumer goods, rather than plant and machinery which would reflect improving business investment.
    • Markit's PMI rose a full point to 54.1 from a revised 53.1 last month, beating all economists' forecasts.
    • The pound is down 0.2% at $1.5414, while the FTSE 100 is +0.3%.
    • ETFs: FXB, EWU, GBB, EWUS, FKU, DXPS, DBUK
    | Comment!
  • Wed, Feb. 18, 6:16 AM
    • Bank of England officials voted unanimously to leave the central bank’s benchmark interest rate unchanged at 0.5% this month and the stock of assets purchased under its bond-buying program unchanged at £375B.
    • Although a unanimous opinion was reached today, one member of the panel concluded the next change in monetary policy in Britain was roughly just as likely to be a loosening as a tightening.
    • The pound is -0.3% at $1.1380, while the FTSE 100 is +0.1%.
    • ETFs: FXB, EWU, GBB, EWUS, FKU, DXPS, DBUK
    | Comment!
  • Tue, Feb. 17, 6:01 AM
    • U.K. inflation fell more than economists forecast in January, dropping to a record low as food and fuel prices tumbled.
    • Consumer-price growth slowed to 0.3% from 0.5% in December, the lowest since the data series began in 1989. Economists had forecast a 0.4% rate in January.
    • As the Bank of England cut its near-term inflation projections last week to reflect the drop in oil prices, Governor Mark Carney warned the rate could fall into deflationary territory in the coming months.
    • The pound is +0.2% at $1.5391, while the FTSE 100 is +0.5%.
    • ETFs: FXB, EWU, GBB, EWUS, FKU, DXPS, DBUK
    | 3 Comments
  • 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
  • Dec. 1, 2014, 6:15 AM
    • U.K. manufacturing PMI edged up to its highest level in four months, rising slightly to 53.5 in November from 53.3 in October and topping consensus of 53.0.
    • Domestic demand offset falling exports due to sluggish orders from the euro zone and emerging markets.
    • The pound gets a lift and is up 0.5% at $1.5712, while the FTSE 100 is -0.7%.
    • ETFs: FXB, EWU, GBB, EWUS, FKU, DXPS, DBUK
    | Comment!
  • Oct. 17, 2014, 4:23 AM
    • With bond markets guessing that interest rates could increase in the middle of next year, Andrew Haldane said that this is "not a bad bet."
    • In June, markets had been predicting a hike in November based on Haldane's thoughts.
    • The pound is -0.15% while the FTSE 100 is +1%.
    • ETFs: FXB, EWU, GBB, EWUS, FKU, DXPS, DBUK, QGBR
    • Previously
    | 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. 15, 2014, 5:06 AM
    • U.K. unemployment for the three months to August fell to a six-year low of 6% from 6.2% previously and came in below consensus of 6.1%.
    • The number of people without a job dropped to below 2M for the first time since 2008, declining 538,000 on year to 1.97M for the largest annual fall on record.
    • However, average earnings rose just 0.7%, as expected but below the inflation rate of 1.2%. (PR)
    • The pound is +0.1% at $1.5916 and the FTSE is -1.35%.
    • ETFs: FXB, EWU, GBB, EWUS, FKU, DXPS, DBUK, QGBR
    | 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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