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iPath GBP/USD Exchange Rate ETN (GBB)

  • Jul. 18, 2013, 4:52 AM
    As expected, U.K. retail sales +0.2% on month in June vs +2.1% previously; on year, sales +2.2% vs +2.1% in May and +1.7% consensus. Excluding fuel, sales +0.2% (as forecast) vs +2.1% in May; on year, sales +2.1% vs +2.3% prior and forecasts of +1.6%. The pound (GBB, FXB) spikes against the dollar before falling back a bit and is now -0.1%. (PR)
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  • Jul. 17, 2013, 4:35 AM
    The Bank of England's Monetary Policy Committee voted unanimously to keep interest rates at 0.5% at a meeting earlier this month and against more quantitative easing, the minutes show. This was Mark Carney's first vote after becoming BOE Governor. The pound spikes as is +0.4% at $1.5221, while the FTSE takes a dive and is flat after being +0.5% not so long ago. ETFs of interest are FKU, EWU, EWUS, DXPS, GBB and FXB. (PR)
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  • Jul. 16, 2013, 4:43 AM
    U.K. CPI -0.2% on month in June vs +0.2% in May and consensus of -0.1%. On year, CPI +2.9% vs +2.7% and +3%. Core CPI +2.3% vs +2.2% and +2.3%. The largest upward contributions to inflation came from motor fuels and clothing & footwear, while the largest drag was air transport. The FTSE (FKU) is flat after being lower earlier, while the pound (GBB) takes a bit of a dive and is -0.25% vs the dollar at $1.5062. (PR)
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  • Jul. 9, 2013, 4:57 AM
    The U.K. economy may not be out of the woods just yet as output figures come in below forecasts. Industrial production was flat on month in May vs -0.1% previous and consensus of +0.2%; on year, output -2.3% vs -1.4% and -1.5%. Manufacturing production -0.8% on month vs -0.2% and +0.3%; on year, output -2.9% vs -0.9% and -1.6% (PR). The total trade deficit widens to £2.435B in May from £2.073B in April, and the goods trade deficit edges up to £8.491B from £8.43B (PR). The pound (FXB) takes a dive vs the dollar and is -0.4%, although the FTSE is relatively unaffected and is +1%.
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  • Jul. 5, 2013, 11:06 AM
    Stay short cable (FXB -2.5%), says Citi, even though it's already off plenty since yesterday's dovish BOE policy statement. In addition to the threat of more QE to combat surging gilt yields, there's also the chance of lower policy rates (currently 0.5%). Minutes from yesterday's meeting are due on July 17 and there's reason to expect more dovish news ahead of that.
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  • Jul. 4, 2013, 8:19 AM
    The minutes of today's BOE's policy meeting, due for release on July 17, may attract extra interest given that this was Mark Carney's first one as governor. The suspicion is that the bank has been waiting for him to arrive before easing further. The BOE's dovish statement appears to designed to assure that no rate hikes are coming in the near future, and, if anything, the next move could be more loosening. Sterling (FXB) -1.2% at $1.5102, and stabilizes a bit after dropping sharply following the statement.
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  • Jul. 4, 2013, 7:22 AM
    Sterling (FXB) drops like a stone following the BOE's dovish statement after its decision to leave things as they are and is now -1.3% at $1.5088. The FTSE jumps a bit and is +1.8%.
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  • Jun. 21, 2013, 4:05 AM
    The U.S. Dollar Index is +0.1% as the greenback mostly continues to add to the gains it enjoyed yesterday following the Fed's QE comments, although not with the same intensity. USD-EUR flat, USD-JPY (FXY) +0.6%, USD-GBP (GBB) +0.1%, USD-AUD -0.3%, USD-CHF +0.1%.
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  • Jun. 20, 2013, 3:09 AM
    The dollar strengthens across the board following the Ben Bernanke Show yesterday. "Bernanke was more explicit than markets had expected. Rising U.S. yields will spur broad dollar buying. The dollar's direction is now set," says Credit Agricole's Yuji Saito. USD-JPY (FXY) +1.1%, USD-EUR +0.3%, USD-GBP (GBB) +0.3%, USD-AUD +0.6%.
  • May. 22, 2013, 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.
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  • May. 22, 2013, 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.
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  • May. 21, 2013, 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.
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  • May. 9, 2013, 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.
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  • Apr. 29, 2013, 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.
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  • Apr. 25, 2013, 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)
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  • Apr. 24, 2013, 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.
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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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