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UPDATE 1-Sterling takes British reopening delay in its stride
  + stars: | 2021-06-14 | by ( Reuters Staff | ) www.reuters.com sentiment -0.91   time to read: +2 min
Prime Minister Boris Johnson is expected to announce a delay of four weeks to his February roadmap, under which his government signalled that all social restrictions to control the spread of the disease would be lifted “no earlier” than June 21. Sterling, which has been one of the best performing currencies in 2021 as investors bet on a strong British economic rebound, hovered just below recent highs. The euro was 0.2% stronger against the pound at 85.96 pence , still stuck within the range of the past two months. ING analysts said a delay to the easing of restrictions was expected and investors were more focused on economic data. Britain’s relatively rapid COVID-19 vaccination rollout and signs of a strong economic rebound have bolstered sterling in recent months and encouraged investors to bring forward their expectations for some limited monetary tightening.
Persons: Sterling, Boris Johnson, , Andrew Bailey, Tommy Wilkes, Alexander Smith, David Goodman Organizations: LONDON, Sterling, ING, Bank of England Locations: Britain, COVID
UPDATE 2-Sterling takes British reopening delay in its stride
  + stars: | 2021-06-14 | by ( Tommy Wilkes | Joice Alves | ) www.reuters.com sentiment -0.94   time to read: +2 min
Sterling, which has been one of the best performing currencies in 2021 as investors bet on a strong British economic rebound, hovered just below recent highs. The euro was 0.15% stronger against the pound at 85.90 pence , still stuck within the range of the past two months. ING analysts said a delay to the easing of restrictions was expected and investors were more focused on economic data. Speaking on Monday, Bank of England (BoE) Governor Andrew Bailey said managing nearly a trillion pounds ($1.4 trillion) of British government bond purchases would be a huge challenge for the central bank. Britain’s relatively rapid COVID-19 vaccination rollout and signs of a strong economic rebound have bolstered sterling in recent months and encouraged investors to bring forward their expectations for some limited monetary tightening.
Persons: Sterling, Boris Johnson, , BoE, Andrew Bailey, Tommy Wilkes, Joice Alves, Goodman, Alex Richardson Organizations: Sterling, ING, Bank of England Locations: Britain, COVID
Sterling takes British reopening delay in its stride
  + stars: | 2021-06-14 | by ( Reuters Staff | ) www.reuters.com sentiment -0.93   time to read: +2 min
Sterling, which has been one of the best performing currencies in 2021 as investors bet on a strong British economic rebound, hovered just below recent highs. Against the dollar it dipped 0.1% to $1.4093, while the euro was 0.2% stronger versus the pound at 85.94 pence . ING analysts said the delay was expected and that investors were more focused on economic data. Britain’s relatively rapid COVID-19 vaccination rollout and signs of a strong economic rebound have bolstered sterling in recent months and encouraged investors to bring forward their expectations for some limited monetary tightening. The BoE gathers for its next policy meeting on June 24.
Persons: Sterling, Boris Johnson, , Andrew Bailey, BoE, Tommy Wilkes, Alexander Smith Organizations: Britain, Sterling, ING, Bank of England Locations: COVID
But how are investors picking their bets? The reopening hopes, alongside the summer weather, have also boosted hard-hit hospitality sector shares such as pub groups Mitchells and Butler and Wetherspoons. ‘STARTING TO BOOM’More than half of British adults have had two vaccine doses, double the percentage seen in many euro zone countries. Investors are also watching Citi's economic surprise index that measures the degree to which data is beating forecasts. The government has reduced the list of “green” countries tourists can visit, hitting shares in airlines EasyJet and British Airways operator IAG.
Persons: Henry Nicholls, , , Kasper Elmgreen, Jefferies, Travis Perkins, ” Jefferies, Butler, Phil Milburn, Milburn, Liontrust, Nomura, John Keeble, Keeble Organizations: REUTERS, UK Cinema Association, SUN Investment, Kingfisher, Liontrust’s, Milburn, Jefferies, JET, British Airways, Charter Company Locations: London, Britain, Europe, United Kingdom, United States, India, Luton, Iceland, Greece
But how are investors picking their bets? 'STARTING TO BOOM'More than half of British adults have had two vaccine doses, double the percentage seen in many euro zone countries. Investors are also watching Citi's economic surprise index that measures the degree to which data is beating forecasts. The government has reduced the list of "green" countries tourists can visit, hitting shares in airlines EasyJet (EZJ.L) and British Airways operator IAG (ICAG.L). Based on the strength of recent interest, Keeble predicts that leisure travel will return to pre-pandemic levels by mid-2022.
Persons: Toby Melville, Kasper Elmgreen, Jefferies, Travis Perkins, " Jefferies, Phil Milburn, Milburn, Liontrust, Nomura, John Keeble, Keeble Organizations: South Bank, REUTERS, UK Cinema Association, SUN Investment, Liontrust's, Milburn, JET, British Airways, Charter Company, Thomson Locations: London, Britain, Europe, United Kingdom, United States, India, Luton, Iceland, Greece
The Deutsche Bank Currency Volatility Index hit its lowest level since February 2020. "All the major currencies are having muted reaction right now as they wait," said JB Mackenzie, managing director of futures and forex at TD Ameritrade. Are they very hot and, if so, does that mean there could be a reaction from central banks globally?" The dollar index was last up 0.12%, while the euro fell 0.09% against the greenback to $1.2179 . Cryptocurrencies were more volatile on the day with Bitcoin last down 3% at $32,544 after hitting a session low of $31,025 - also its lowest level since May 19.
Persons: Sinéad Carew, JB Mackenzie, Bitcoin, Tommy Wilkes, Robert Birsel, Will Dunham, Bernadette Baum Organizations: YORK, U.S, Central Bank, Federal Reserve, Deutsche Bank, Traders, Treasury, Australian, RIC Locations: China, Europe, United States, Norway, Sweden, London
FOREX-FX volatility at Feb 2020 lows with dollar gaining slightly
  + stars: | 2021-06-08 | by ( Sinéad Carew | ) www.reuters.com + 0.00   time to read: +3 min
With an impending European Central Bank meeting on Thursday and U.S. inflation data due the same day, and a U.S. Federal Reserve meeting next week, currencies appeared to be treading water while the S&P 500 dipped very slightly. Range-bound currency markets mean a fall in volatility. The Deutsche Bank Currency Volatility Index hit its lowest level since February 2020. The U.S. dollar found a bit of support on Tuesday as investors prepared for the inflation data after Friday's weaker-than-expected jobs data, which has eased concerns about an early tapering of the Federal Reserve's monetary stimulus. The dollar index rose 0.15% to 90.107, while the euro fell 0.13% against the greenback at $1.2174 .
Persons: Sinéad Carew, we're, Erik Bregar, Cryptocurrencies, Bitcoin, Tommy Wilkes, Robert Birsel, Will Dunham, Bernadette Baum Organizations: YORK, U.S, Central Bank, Federal Reserve, Deutsche Bank, Exchange Bank of Canada, Bank of Canada, CPI, ECB, Traders, Treasury, Federal, Australian, RIC Locations: Norway, Sweden, London
Dollar finds footing as traders wait for inflation numbers
  + stars: | 2021-06-08 | by ( Tommy Wilkes | ) www.reuters.com sentiment -1.00   time to read: +2 min
REUTERS/Thomas White/Illustration/File PhotoThe euro fell, weakened by the dollar’s strength and data showing German industrial production numbers declined in April. Currency markets were generally in a holding pattern ahead of Thursday, when the European Central Bank meets and U.S. inflation numbers are published. The British pound fell 0.3% to $1.4138 and the Australian dollar eased slightly to $0.7745, even though both stuck in ranges seen over the past couple of months. The Japanese yen dropped as the dollar rose, fetching 109.51 yen per dollar, down 0.2% on the day. Bitcoin eased to a three-week low of $32,418, while ether fell 4% to a one-week low of $2,431.93.
Persons: Thomas White, , , Philip Wee, Janet Yellen’s, Cryptocurrencies Organizations: U.S, Federal, REUTERS, European Central Bank, FX, CPI, ECB, ” ING, Federal Reserve, DBS Bank, Treasury, Australian
FX volatility falls to pre-pandemic lows as traders wait it out
  + stars: | 2021-06-07 | by ( Tommy Wilkes | ) www.reuters.com + 0.00   time to read: +2 min
REUTERS/Rick Wilking/File PhotoWith an impending European Central Bank meeting on Thursday and U.S. inflation data due the same day, and a U.S. Federal Reserve meeting next week, currencies appear to be treading water. Range-bound currency markets mean a fall in volatility. The Deutsche Bank Currency Volatility Index hit its lowest since February last year. While volatility levels are nowhere close to record lows, “the doldrums are widespread – all major pairs are below their average vol,” he added. Currency markets were generally in a holding pattern ahead of Thursday, when the European Central Bank meets and U.S. inflation numbers are published.
Persons: Rick Wilking, Marshall Gittler, , Cryptocurrencies Organizations: REUTERS, Central Bank, U.S, Federal Reserve, Deutsche Bank, Federal, European Central Bank, FX, CPI, ECB, ” ING, Australian Locations: Westminster , Colorado
LONDON (Reuters) - Stock markets hovered near record highs on Wednesday as investors cheered the latest evidence of a sustained rebound in global economies and stronger oil prices lifted energy stocks. A strong expansion in U.S. and European factory activity in May had lifted world shares to record highs on Tuesday. While broader stock markets remain close to record highs, the momentum of earlier in the year has ebbed as investors begin to worry a stronger-than-expected rebound from COVID-19 means higher inflation and sooner-than-expected monetary policy tightening. The euro slipped 0.2% to $1.2194, just shy of recent highs as the dollar bounced off five-month lows against major rivals. “As the major developed economies continue to reopen from COVID lockdowns the focus on central bank meetings is going to intensify,” MUFG analysts said in a monthly outlook note.
Persons: Issei Kato, Germany’s DAX, Mark Haefele, , Brent Organizations: Stock, REUTERS, CAC, UBS, Global Wealth Management, U.S ., Federal Reserve, Benchmark U.S, Treasury, European Central Bank, ECB, . West Texas Locations: Tokyo, Japan, United States, Europe, COVID, OPEC
Stocks near highs on recovery bets as oil extends rally above $70
  + stars: | 2021-06-02 | by ( Tommy Wilkes | ) www.reuters.com + 0.00   time to read: +4 min
LONDON (Reuters) - Stock markets hovered near record highs on Wednesday as investors cheered the latest evidence of a sustained rebound in global economies and as stronger oil prices lifted energy stocks. FILE PHOTO: Bull and bear symbols are seen in front of the German stock exchange (Deutsche Boerse) in Frankfurt, Germany, February 12, 2019. A strong expansion in U.S. and European factory activity in May had lifted world shares to record highs on Tuesday. “We see energy firms as among the main beneficiaries of the broader global reflation trend, along with financials,” he said. The euro slipped 0.3% to $1.2173, shy of recent highs as the dollar bounced off five-month lows against major rivals.
Persons: Kai Pfaffenbach, Germany’s DAX, Mark Haefele, , COVID lockdowns, Brent Organizations: Stock, Deutsche, REUTERS, CAC, UBS, Global Wealth Management, ’ FX, U.S, Federal Reserve, Benchmark U.S, Treasury, European Central Bank, ECB, . West Texas Locations: Frankfurt, Germany, United States, Europe, COVID, OPEC
Dollar holds above recent lows as traders wait for inflation data
  + stars: | 2021-05-27 | by ( Tommy Wilkes | ) www.reuters.com + 0.00   time to read: +3 min
LONDON (Reuters) - The dollar struggled to hold on to its gains on Thursday as more investors weigh up whether the Federal Reserve is edging closer to talking about tapering its asset purchases, and as traders wait for this week’s closely watched U.S. inflation data. FILE PHOTO: Four thousand U.S. dollars are counted out by a banker counting currency at a bank in Westminster, Colorado November 3, 2009. The euro traded at $1.2199, unchanged on the day, and the yen near a one-week low at 109.13 per dollar. The New Zealand dollar pushed to as high as $0.7304, below its Wednesday high. Market attention now turns to U.S. inflation data due on Friday as investors gauge the extent of a jump in price growth in recent months.
Persons: Rick Wilking, Sterling, Richard Clarida, Randal Quarles, , Kim Mundy, , hemming Organizations: Federal, REUTERS, ” ING, Reserve Bank of New, New Zealand, PCE, Commonwealth Bank of Australia, CPI Locations: Westminster , Colorado, Asia, Reserve Bank of New Zealand
Dollar steadies ahead of inflation data, yuan hits new 3-year high
  + stars: | 2021-05-25 | by ( Tommy Wilkes | ) www.reuters.com + 0.00   time to read: +3 min
REUTERS/Gary Cameron/File PhotoChina’s yuan scaled a new three-year high as investors become more confident that the Chinese central bank is comfortable with a stronger currency amid the country’s economic recovery. The euro traded at $1.2203, up 0.1% on the day, and the yen near a one-week low at 109.17 per dollar. Fed officials have this week downplayed immediate concerns about inflation prompting a knee-jerk policy response. Market attention now turns to U.S. inflation data due on Friday as investors gauge the extent of a jump in price growth in recent months. The latest fretting about inflation was triggered when data in mid-May showed April U.S. CPI running at an annual clip of 4.2%, well above forecasts for 3.6%.
Persons: Abraham Lincoln, Gary Cameron, Sterling, Richard Clarida, , Mark Haefele Organizations: Federal, Engraving, REUTERS, UBS Global Wealth Management, ING, New Zealand, Reserve Bank of New, People’s Bank of, CPI Locations: Washington, U.S, Reserve Bank of New Zealand, People’s Bank of China
Since March 2020, central banks and governments have flooded markets with some $27 trillion - a third of global gross domestic product, consultancy CrossBorder Capital estimates. At the end of March, 82% of central banks were running loose monetary policies, CrossBorder estimates, though that is down from 88% in January. Some central bank policy tightening may be offset by U.S. President Joe Biden's stimulus plans, which if approved, could top 15% of GDP. Since the 2008 crisis, markets have become hooked on ever-increasing sums of cash ploughed in by central banks. Aside from the Bank of Canada, big central banks will likely end 2021 with significantly bigger balance sheets.
Persons: Brendan McDermid, Steve Donzé, Joe, Nikolaos Panigirtzoglou, Panigirtzoglou, Larry Summers, Barack Obama, Donzé, BoE, that's, Norman Villamin, UBP Organizations: New York Stock Exchange, REUTERS, CrossBorder, Bank of Canada, Bank of, Federal Reserve, Pictet Asset Management, U.S, Bank of International, Fed, ECB, Bank of Japan, Thomson Locations: New York, U.S, Bank of England, United States, China, Japan, Britain, Swiss
Bitcoin slides below $40,000 after China's new crypto ban
  + stars: | 2021-05-19 | by ( Tommy Wilkes | Sujata Rao | ) www.reuters.com + 0.00   time to read: +3 min
LONDON (Reuters) -Bitcoin tumbled below the $40,000 mark on Wednesday to a 3-1/2 month low as selling in digital coins intensified after China banned financial and payment institutions from providing cryptocurrency services. The cryptocurrency has tumbled 40% from a record high of $64,895 hit on April 14. Cryptocurrency price declines last week were sparked by Musk’s reversal on Tesla accepting bitcoin as payment. The crypto asset selloff at a time when inflation fears are rising hurts the idea of the asset class as an inflation hedge. The recent selloff in bitcoin and other digital currencies has sent market capitalisation of all cryptocurrencies to $1.7 trillion, down from the $2.5 trillion record hit earlier this month.
Persons: Elon Musk, Coinbase, Eric Gaillard China’s, , Ulrik Lykke, Saxo, Steen Jakobsen, Organizations: REUTERS, JPMorgan Locations: China, Marseille, France, bitcoin
“Bitcoin’s sharp price drop should come as no shock to the market,” said Gavin Smith, chief executive officer of crypto consortium Panxora. Bitcoin’s decline whacked other crypto assets, with Ether, the coin linked to the ethereum blockchain network, dropping to $1,850, its weakest level since late Janury. Cryptocurrency price declines last week were sparked by Musk’s reversal on Tesla accepting bitcoin as payment. The crypto asset selloff at a time when inflation fears are rising hurts the idea of the asset class as an inflation hedge. The recent selloff in bitcoin and other digital currencies has sent market capitalisation of all cryptocurrencies to $1.7 trillion, down from the $2.5 trillion record hit earlier this month.
Persons: Elon Musk, , , Gavin Smith, we’re, Eric Gaillard Shares, Ulrik Lykke, Saxo, Steen Jakobsen Organizations: REUTERS, Tesla Inc, JPMorgan Locations: China, Marseille, France, bitcoin
Bitcoin plunges: A bust or a buy?
  + stars: | 2021-05-19 | by ( Tommy Wilkes | Sujata Rao | Gertrude Chavez-Dreyfuss | ) www.reuters.com + 0.00   time to read: +5 min
At one point on Wednesday nearly $1 trillion was wiped off the market capitalization of the entire crypto sector. A Bitcoin (BTC) and crypto currency ATM machine displays the Bitcoin price in a shop in Union City, New Jersey, U.S., May 19, 2021. Cryptocurrency price declines last week were sparked by Musk’s reversal on Tesla accepting bitcoin as payment, citing the heavy environmental toll of “mining” bitcoin, which requires a lot of electricity to power the computers that create bitcoin. SAFE HAVEN GOLDInvestors could also be exiting bitcoin for gold, analysts at JPMorgan said, citing data on open interest in CME bitcoin futures contracts. That the crypto asset is tumbling at a time when inflation fears are rising undermines the case for investing in the asset class to hedge against inflation, analysts said.
Persons: Elon Musk, Cathie Wood, , , Thomas Hayes, James Bullard, Tesla’s, Mike Segar, Gavin Smith, we’re, Musk, bitcoin, Ulrik Lykke Organizations: Tesla Inc, Capital LLC, Federal Reserve, Louis Federal Reserve, U.S, Treasury, REUTERS, Bloomberg, HAVEN, JPMorgan, Locations: ” St, China, Union City , New Jersey, U.S
Sustainable finance scramble reaches currency derivatives market
  + stars: | 2021-05-18 | by ( Tommy Wilkes | ) www.reuters.com + 0.00   time to read: +5 min
But energy firms Drax and Italy’s Enel are among those to have recently signed up to ESG-linked FX derivatives, the price of which depends on anything from cutting greenhouse emissions to improving workforce diversity. QUANTIFIABLE TARGETSJeremy Hamon, head of group finance at engineering business Primetals Technologies, thought sustainability-linked finance was limited to debt products such as those issued by Primetals’ parent company Mitsubishi Heavy Industries. Banks insist targets in the ESG-linked derivatives are ambitious, measurable and independently verified. One possibility is for ESG targets to be quantified through a regulatory-approved scoring system. With this shift, banks would be able to price ESG linked products differently,” said Max Poulin from Deutsche Bank’s FX structuring team.
Persons: Drax, Italy’s, Keen, Fabio Madar, Jeremy Hamon, Primetals, ” Hamon, , Lisa Dukes, Banks, Claire Coustar, Mimi Rushton, Max Poulin Organizations: NatWest Markets, Technologies, Mitsubishi Heavy Industries, Deutsche Bank, Barclays, NatWest, FX, Deutsche, Barclays ’
Dollar holds firm as virus restrictions in Asia unnerve investors
  + stars: | 2021-05-17 | by ( Tommy Wilkes | ) www.reuters.com + 0.00   time to read: +3 min
REUTERS/Jo Yong-HakThe dollar held above recent lows on Monday as new COVID-19 restrictions in Asia and mixed economic data in China encouraged investors to stick with safer currencies, while a pullback in commodity prices whacked the Australian and New Zealand dollars. read moreEasing commodity prices and fresh virus outbreaks in Singapore and Taiwan - where COVID-19 had been contained - helped the dollar. The Australian dollar fell half a percent to 0.7741 while the New Zealand dollar weakened 0.8% to 0.7193. The Norwegian crown, which is highly sensitive to oil prices, fell, with the euro adding 0.9% to 10.06 crowns . Speculators increased their bets against the dollar last week, mostly by adding to bets on the euro and to a lesser extent sterling.
Persons: Jo Yong, skidded, Elon Musk, Lee Hardman Organizations: Korea Exchange Bank, REUTERS, New, Tesla Inc, New Zealand, Thomson Locations: Seoul, Asia, China, New Zealand, Singapore, Taiwan, Norwegian, Britain
Dollar edges higher as virus restrictions unnerve investors
  + stars: | 2021-05-17 | by ( Tommy Wilkes | ) www.reuters.com + 0.00   time to read: +3 min
LONDON (Reuters) - The dollar edged higher on Monday as new COVID-19 restrictions in Asia and mixed economic data in China encouraged investors to stick with safer currencies. FILE PHOTO: An employee counts U.S. dollar bills at a money exchange in central Cairo, Egypt, March 20, 2019. REUTERS/Mohamed Abd El Ghany./File PhotoThe euro fell marginally while other major currencies remained in tight ranges in a quiet start to the week. The greenback’s performance against the euro and yen was less pronounced, but it remained above the recent lows hit before higher-than-expected U.S. inflation data last week. While investor nervousness supported the dollar on Monday, analysts generally expect the greenback to weaken as investors bet on a further rebound in other economies as they reopen.
Persons: Mohamed Abd El Ghany, Bitcoin skidded, Elon Musk, , Kim Mundy Organizations: REUTERS, Tesla Inc, U.S, New, Commonwealth Bank of Australia, CPI Locations: Asia, China, Cairo, Egypt, Singapore, Taiwan, New Zealand, Sydney, Britain
FILE PHOTO: Skyscrapers in The City of London financial district are seen from City Hall in London, Britain, May 8, 2021. Lifestyle choices are also playing their part, with traders and other senior staff moving too. Some European bankers are now looking at making the shift permanent. Financial lobby group Paris Europlace in 2016 predicted Brexit would create 10,000 new finance jobs in Paris by 2025. Up to 35,000 London financial jobs could eventually disappear, said William Wright of think tank New Financial.
Persons: Henry Nicholls, Morgan Stanley, Goldman Sachs, , Emmanuel Goldstein, Morgan Stanley’s, Goldstein, Luigi Colizzi, Alessandro Dusi, Goldman, EY, William Wright, Andrea Enria, monty ’, we’re, Arnaud de Bresson, Paris Europlace’s, ” Morgan Stanley’s Goldstein, Emmanuel Macron, Andreas Halin, COVID ” Organizations: European Union, City Hall, REUTERS, Barclays, Wall Street, Miami, Barclays ’, BNP, Greenhill & Co, Reuters, Goldman, JPMorgan, Financial, Paris, Frankfurt ”, Paris . Bank of America, UBS, Bankers, Global Locations: PARIS, London, The City, Britain, Brussels, New York, Morgan Stanley’s France, Paris, Europe, East, Milan, Frankfurt, Madrid, Amsterdam, France, Italy, Netherlands, Germany, York, EU
The lack of a breakthrough in talks for a meaningful deal between Brussels and London on financial services post-Brexit has added to the impetus. Lifestyle choices are also playing their part, with traders and other senior staff moving too. Some European bankers are now looking at making the shift permanent. Financial lobby group Paris Europlace in 2016 predicted Brexit would create 10,000 new finance jobs in Paris by 2025. Up to 35,000 London financial jobs could eventually disappear, said William Wright of think tank New Financial.
Persons: Goldman Sachs, Morgan Stanley, , Emmanuel Goldstein, Morgan Stanley’s, Goldstein, Luigi Colizzi, Alessandro Dusi, Goldman, EY, William Wright, Andrea Enria, monty ’, we’re, Arnaud de Bresson, Paris Europlace’s, ” Morgan Stanley’s Goldstein, Emmanuel Macron, Andreas Halin, COVID ” Organizations: Barclays, European Union, Wall Street, Miami, Barclays ’, BNP, Greenhill & Co, Reuters, Goldman, JPMorgan, Financial, Paris, Frankfurt ”, Paris . Bank of America, UBS, Bankers, Global Locations: Frankfurt, LONDON, PARIS, London, Brussels, New York, Morgan Stanley’s France, Paris, Europe, East, Milan, Madrid, Amsterdam, Britain, France, Italy, Netherlands, Germany, York, EU
Against the euro too, sterling recovered most of its losses and was last at 86.47 pence, down just 0.2%. “Any prospect of negative interest rates seems to have sailed for now” he added. Slowing the pace of bond-buying represents a moderate step towards the moment when the BoE begins to reverse its emergency stimulus. The BOE said it would slow its purchases to 3.4 billion pounds between May and August, from the current 4.4 billion-pound weekly pace. “And then it appears that the market responded to the headlines that the BoE would slow the pace of bond purchases.
Persons: BoE, Sterling, ” Ambrose Crofton, BOE, , , Richard McGuire, Joice Alves, Dhara, Sujata Rao Organizations: Bank of England, Morgan Asset Management, Reuters, Rabobank, , Scottish, Scottish National Party Locations: England’s, United Kingdom
The pound struggled to digest the BoE announcements, dropping initially before rising on the bond-buying slowdown and then weakening again. The BoE said it now forecast economic growth of 7.25% in 2021, up from a 5% growth forecast in February, while predicting that inflation would remain contained even with the accelerating recovery. “The punchy cocktail of a reopening economy and excess consumer savings means that the UK economy should be set for a party for the remainder of the year,” Ambrose Crofton, global market strategist at J.P. Morgan Asset Management. Slowing the pace of bond buying represents a moderate step towards the moment when the BoE begins to reverse its emergency stimulus. “And then it appears that the market responded to the headlines that the BoE would slow the pace of bond purchases.
Persons: BoE, Sterling, ” Ambrose Crofton, BOE, , , Richard McGuire, Joice Alves, Dhara, Sujata Rao, Amy Caren Daniel Organizations: Sterling, Bank of England, Morgan Asset Management, Reuters, Rabobank, , Scottish, Scottish National Party Locations: England’s, United Kingdom
Sterling waits for BoE decision on slowing emergency support
  + stars: | 2021-05-06 | by ( Reuters Staff | ) www.reuters.com + 0.00   time to read: +3 min
Slowing that pace would represent a moderate step towards the moment when the BoE begins to reverse its emergency stimulus. “The BoE should deliver a series of upgrades to its economic forecasts today and this encouraging outlook suggests the Bank may announce QE (quantitative easing) tapering. While this should come as no surprise, on the margin it should be GBP positive, particularly after the tough month of April for sterling,” ING analysts said in a note. Some analysts reckon the BoE will follow the U.S. Federal Reserve and back away from too much talk of tapering its stimulus extended last year. Sterling was down marginally by 0815 GMT at $1.3905 after 0.2% versus the euro at 86.495 pence.
Persons: BoE, , , Swissquote, Ipek Ozkardeskaya, Boris Johnson, Sterling, Tommy Wilkes, Gareth Jones Organizations: Sterling, Bank of England, Reuters, Bank, ” ING, U.S . Federal Reserve, Scottish, Scottish National Party, British Locations: Britain, England’s, United Kingdom
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