What Now for Sterling after Investors Lose Confidence in the UK Economy?

The pound crashed to an all-time low versus the US dollar this week as investors fled the UK after losing confidence in the new government’s economic vision. Having already been the second worst performing currency this year, sterling’s year-to-day losses now stand at 20%. But as the selloff shows some signs of easing and the […]

EUR/USD Falls to New 20-year Low

The euro is in negative territory today, after posting six straight days of losses. EUR/USD is trading at 0.9553 in Europe, down 0.41%. Referendums, Nord Stream explosions weigh on euro September can’t end fast enough for the euro, which has declined a massive 4.8% against the dollar. Earlier today, EUR/USD fell to 0.9536, its lowest […]

Australian Dollar Extends Losses

The Australian dollar can’t find its footing and continues to lose ground against the surging US dollar. AUD/USD was down considerably earlier today but has pared most of these losses. In the North American session, AUD/USD is trading at 0.6425, down 0.14%. Australia retail sales higher than expected Australia’s retail sales for August rose 0.6% […]

Sunset Market Commentary

Markets The heavy UK Gilt sell-off triggered a response by the Bank of England. They consider the repricing, especially at the very long end of the curve, as a material risk to UK financial stability especially should dysfunction in the market continue or worsen. In order to restore market functioning and reduce any risks from […]

Global Consumer Spending and How Much Inflation is Left

As prices around the globe increase, consumers can buy less with the same amount of money. Some consumers have the capacity to increase spending. Either by borrowing money, getting a new job, or getting a raise. But, with average wages in most developed countries trending negative in real terms, generally consumers have less buying power. […]

BoE's Intervention Drives Broad-Based Risk-on

Market movers today Aside from the ongoing focus on the developments in the UK and the tensions against Russia, markets will look out for the German flash inflation figures for September ahead of the Euro Area HICP tomorrow. Consensus is looking for a further uptick amid the surge in energy prices. In addition, the Euro […]

Thanks for the Ride, Bailey

Hallelujah! The Bank of England (BoE) jumped in the UK’s shattered sovereign market to buy long-term UK bonds yesterday, because apparently, they have been warned that collateral calls on Wednesday afternoon could force investors to further dump their UK sovereign holdings. And the UK could no longer afford another heavy selloff wave on its sovereigns. […]

Bitcoin’s 10-day flat

Market picture Bitcoin is up 3.1% over the past 24 hours, trading around $19,400. After a downward momentum early in the day, the first cryptocurrency received some support thanks to a recovery in risk appetite. Ethereum is gaining 3.5% overnight to $1330, with the top cryptocurrencies ranging from +0.5% (Cardano) to +4.7% (BNB). Overall, total […]

GBP/USD Slides as Turmoil Continues

Pound sharply lower despite BoE intervention The roller-coaster continues for the British pound, which is down sharply today. In the European session, GBP/USD is trading at 1.0774, down 1.05%. It has been a remarkable week for the British pound, which has exhibited sharp volatility since Friday, when Chancellor Kwarteng unveiled his mini-budget. The package included […]

Canadian Dollar Slides, GDP Next

The Canadian dollar continues to show sharp volatility this week. USD/CAD has jumped 0.65% today and is trading at 1.3693. We are seeing significant volatility in the currency markets this week, with weaker risk appetite propelling the US dollar higher. The Canadian dollar been hit by the double whammy of an aggressive Federal Reserve and […]