Canadian growth beats forecasts

Canada's economic growth data surprised the markets yesterday. Most analysts had expected a sizable drop in the growth rate to 1.5%. However, the annual growth rate to the end of Q3 was 2.9%, nearly double that expectation and only marginally down on the Q2 figure of 3.2%.
Bank of England facade in London in the evening. BoE UK interest rate cut concept

GDP slowing everywhere – Sweden and Switzerland included

This morning started with two sets of economic growth data. Sweden published Q3 GDP growth of just 0.6% (down from 1.4% in Q2) and that brought the annual growth rate down to 2.5% from 4.2% previously. An hour later, Switzerland announced an annual growth rate of just 0.5%, much worse than the Q2 rate of 2.2%.

Commodities slip on China revolt

Currencies of countries that export large amounts of commodities are sliding, probably in response to the attempts at lockdown in China and the subsequent resistance by Chinese citizens. Demonstrations against the Covid restrictions are happening in Beijing and Shanghai on a scale not seen since Tiananmen Square in 1989.

USD flat in thin markets

Trading volume and volatility were in short supply on Thursday as the US markets took a public holiday. Those conditions are likely to continue into the dreaded Black Friday as well, as US markets only operate for half the day and few traders bother to get involved; so alluring is the prospect of an air fryer with 40% off.

US dollar weaker as Thanksgiving weekend starts

Disappointing US data and a more dovish tone from the Federal Reserve minutes allowed the US dollar to weaken yesterday, as US traders prepared for, what has become a four-day weekend these days. It is Thanksgiving Day today.

NZD gains strength from record rate hike

The Reserve Bank of New Zealand delivered a record-breaking 75 basis point interest rate hike when they met in the early hours of this morning. That brought the base rate up to 4.25%; the highest since December 2008.

USD loses momentum after impressive Monday

Mixed messages coming from US Federal Reserve undermined the strength the USD displayed yesterday. Cleveland Federal Reserve President Loretta Mester said that, while she doesn't have a problem with the Fed cutting the size of its interest rate hikes, she will need to see further progress on inflation reduction before she is ready to advocate no interest rate hikes at all.
COVID cases could reach 100,000 a day

Asian stocks tumble on China resuming tighter Covid controls

The pound is starting the week on the decline, trading just above $1.18 after surpassing $1.20 last week. That has a lot to do with the stronger dollar, which has been in demand as risk aversion climbed on signs that China is resuming tighter Covid controls.
New pound coin on union jack flag symbolising Sterling weakness on unemployment data

Jeremy Hunt delivers Autumn Statement in Westminster

The morning after the day before! At quick look back at the highlights following on from the Autumn Statement yesterday. Jeremy Hunt took his place in Westminster and delivered his first Autumn Statement following on from the Truss/Kwartang horror show.
New pound coin on union jack flag symbolising Sterling weakness on unemployment data

Sterling steady ahead of Autumn Budget

Chancellor of the exchequer Jeremy Hunt will deliver his autumn statement today. It's a budget by any other name but we're not supposed to call it that. Information about the statement has been leaking out of the treasury like water through a sieve over the last few days...
UK wealth gap widens

UK CPI tops 11% for first time in 4 decades

The headline Consumer Price Index in the UK hit 11.1% in the year to October. That is the highest level in 40+ years. We know the underlying reasons and we know it may get worse before it gets better due to Russia’s aggression in Ukraine and its influence on wheat, energy and other commodity prices.
gbp to jpy

USD weakens as slowing rate hikes indicated

There have been mutterings from various members of the US Federal Reserve that the pace of interest rate hikes ought to slow and that made it hard for the US dollar to capitalise on the gains it made over the weekend. Hence, the GBPUSD rate has rebounded to $1.1820 this morning.
US dollar denominations

GBP & EUR flattered by USD weakness but losing ground

Last week was mostly categorised by weakness in the US dollar but there was some clear profit-taking going on in this morning’s Asian trading session. Hence, the GBPUSD rate, which had peaked at just above $1.1850 before the weekend, is down to $1.1770 this morning.

UK GDP beats forecasts

This morning’s release of UK economic growth data for the third quarter of the year beat market expectations to some degree. While the data showed a contraction of 0.6% in the month of September the annual growth in the year to September came in at 2.4%, which was better than the general market forecast of 2.1%.

US inflation numbers overshadowed by knife edge midterms

The US midterm elections have proven to be much more evenly balanced than anybody had forecast. At the time of writing the control of Congress is still undecided and the end result is very hard to call. Many have been very surprised by the support the Democratic Party has mustard.

USD softer as mid-term results awaited

The knife-edge nature of the US mid-term elections left the US dollar adrift yesterday. That flattered other currencies as the dollar weakened.

Big day for USD with mid-term elections

With the Republicans needing just five seats to gain the majority in Congress and only one seat to control the Senate, today’s US mid-term elections could not be more crucial.

GBP mounts modest recovery – except against Euro

Having had a very poor week last week, sterling mounted a small recovery against most other currencies in the last 24 hours of trading. This looks very much like a profit-taking move as the speculative traders who had been selling the pound all week, bought back sterling to take profit.