All eyes on US Federal Reserve

A very Happy Australia Day to all involved. As far as the markets are concerned, I think everyone is too busy on the barbie with a cold one in hand because exchange rates are very much steady as she goes.

Russian aggression continues to dominate the news

Tea parties and Russian troops dominate the news in the UK. Now that’s not a phrase you would expect to write. The pressure continues to mount on British Prime Minister Boris Johnson after further allegations of lockdown busting gatherings.

USD overbought but Ukraine could increase that pressure

The general consensus in the foreign exchange markets is that the US dollar is significantly overbought at the current levels. There is no surprise in that; the heightened tensions relating to the Russian military build-up on the Ukrainian border and the West’s threatened responses to any military action, we're bound to strengthen the US Dollar.

Russian manoeuvres strengthen safe haven currencies

The build-up of tension on the Ukraine – Russian border is a significant part of the reason for the USD strength we saw in the latter part of yesterday. GBPUSD is down nearly a cent at $1.3585 this morning.

Australia’s unemployment rate fell to its lowest level in over 13 years

UK inflation rose to 5.4% in the year to December. That was above expectations and quite alarming when compared to yesterday's average earnings index, which was up 4.2% in the year to November.

UK CPI at 5.2% beats wages

UK inflation rose to 5.4% in the year to December. That was above expectations and quite alarming when compared to yesterday's average earnings index, which was up 4.2% in the year to November.

Sterling steadies as record UK jobs added

There was a time when Prime Minister Johnson's current problems would have been referred to as ‘partygate’ but I guess the ‘gate’ days are over. Either way, the vast amount of column inches devoted to drinks at number 10 have weakened Sterling but a very strong UK employment report this morning has abated that decline.

Fourth-quarter GDP rose by 4% from a year ago

China’s economy grew by 8.1% in 2021 as industrial production rose steadily through the end of the year and offset a drop off in retail sales, according to official data from China’s National Bureau of Statistics released Monday.

Pound Sterling wobbles with political uncertainty

The British Pound has enjoyed a strong start to 2022, with moves higher against the Euro in week one and solid moves against the Dollar throughout this week.

Sterling continues to test EUR, AUD and NZD

After much excitement earlier in the week; with Sterling testing multi-month highs across much of the basket, performance since Monday has been more subdued, but still broadly positive.

Sterling hits a new pre-pandemic high

Sterling rose yesterday to touch a pre-pandemic high versus Euro, largely supported by expectations that the Bank of England will raise interest rates further. The pairing edged higher to just shy of 1.20 – the highest since February 2020.

Australian retail sales increased by a significantly higher-than-expected 7.3%

In November 2021, Australian retail sales increased by a significantly higher-than-expected 7.3%. In the UK, the British Retail Consortium reported that like-for-like sales increased by only 0.6% in December, indicating that sales declined after a robust November.

GBP/USD moves sideways at the beginning of the week

GBP/USD has started to move sideways at the beginning of the week after failing to break above 1.3600 on Friday. The pair remains at the mercy of the greenback's market valuations and rising US Treasury bond yields suggest that GBP/USD could stage a downward correction in the near term.

Sterling maintains strength

The British government is expected to lessen the demands for covid testing for travellers to the UK today. That is seen as another sign that the UK economy will be able to continue the recovery from the pandemic. So the GBP strength we saw over the Christmas period has continued.

UK Government to ease testing regime

The British government is expected to lessen the demands for covid testing for travellers to the UK today. That is seen as another sign that the UK economy will be able to continue the recovery from the pandemic. So the GBP strength we saw over the Christmas period has continued.

Sterling riding high on ‘no lockdown’ news

Most of the world’s markets were closed yesterday so the data was light but, leave Sterling alone for just a day or so and it’s like filling your toddlers with chocolate and unleashing them at their grandparents’ house. I speak from experience.

Omicron wave appears milder than Delta but concerns remain

New research from the Universities of Edinburgh and Strathclyde confirms that the risk of hospitalisation from Omicron is significantly lower than the Delta variation. As fears of more lockdowns fade, this is giving the markets a boost heading into the holiday season.

Sterling up despite mixed data

We have had mixed data from the UK overnight but the mood was generally positive. Whilst business investment contracted by 2.5% in Q3, Annual GDP grew by 6.8% in the year to September. That was better than the 6.6% forecasts and the pound has gained some ground this morning.