Latest News

Sterling set for biggest daily gain since 2017 after U.S. CPI

Oversold sterling surges against euro, inches up vs dollar By Reuters

Breaking News


Economy 19 minutes ago (Nov 10, 2022 12:29)

© Reuters. FILE PHOTO: Pound Sterling notes and change are seen inside a cash resgister in a coffee shop in Manchester, Britain, Septem,ber 21, 2018. REUTERS/Phil Noble

By Joice Alves

LONDON (Reuters) – Sterling surged against a weakening euro and also inched higher against a strengthening dollar ahead of U.S. CPI inflation data, bouncing back from a sharp slide.

After falling 1.6% on Wednesday, the pound rose 0.13% to $1.1375. Against the euro, sterling jumped 0.9% to 87.43 pence, reversing the 1% fall on Wednesday and setting the UK currency on track for its biggest daily gains against the single currency in one month.

“Sterling may have become a little oversold yesterday, which against a modestly constructive risk backdrop ahead of CPI has encouraged a modest sterling bounce,” Jeremy Stretch, head of G10 FX strategy at CIBC, said.

“However, we would prefer to remain a seller of sterling rallies,” he added, mentioning expectations for weak GDP figures on Friday and data showing UK house prices fell in October amid rising mortgage rates.

The outlook for the UK economy is gloomy, with the Bank of England warning last week of the risk of a two-year recession in Britain.

Investors are now waiting for Prime Minister Rishi Sunak and his finance minister Jeremy Hunt to announce their first budget programme on Nov. 17. The new government is likely preparing to announce major tax increases and spending cuts.

Sterling fell to a record low against the U.S. dollar in the wake of former PM’s mini-budget in September and the Bank of England had to step in and buy government bonds to halt a firesale of assets by British pension funds.

Oversold sterling surges against euro, inches up vs dollar

U.S. CPI, FTX meltdown hits crypto, Putin skips G20 – what’s moving marketsBy – Nov 10, 2022

By Geoffrey Smith — The U.S. inflation rate is set to fall for the fourth straight month – but make sure to read beyond the headline numbers. Cryptocurrencies reel…

Bank of Ireland increases fixed mortgage rates by 0.25%By Reuters – Nov 10, 2022

DUBLIN (Reuters) – Bank of Ireland followed main rival AIB in increasing mortgage interest rates after the European Central Bank began to hike its rates, adding a smaller 0.25% to…

UK fiscal hole could disappear if debts were calculated differently, research showsBy Proactive Investors – Nov 10, 2022

Proactive Investors – Research by the Progressive Economy Forum (PEF) suggests that the £50bn hole in government finances can be altered massively by changing the way debt is…

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning

© 2007-2022 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

What's your reaction?

In Love
Not Sure

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in:Latest News