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Investors piled into bets on the BoE keeping Bank Rate at 5.25% on Wednesday as soon as official data showed a surprise fall in the pace of price growth. Other analysts said they still thought a final BoE rate hike was the most likely outcome after a recent jump in global oil prices, but they stressed it could go either way. "We stick with our call for a hike, but now see this as a coin toss," JP Morgan economist Allan Monks said. British inflation is almost double the rate in the United States, where the Federal Reserve on Wednesday kept borrowing costs on hold. Last week, the European Central Bank raised rates to a record high but signalled that it was likely to pause.
Persons: BoE, Goldman Sachs, JP Morgan, Allan Monks, BoE Governor Andrew Bailey, Rishi Sunak, Bailey, Dominic Bunning, William Schomberg, Alex Richardson Organizations: Bank of England, Monetary, British, ECB, FX Research, HSBC, Federal Reserve, European Central Bank, Thomson Locations: United States
As they did in June, Fed policymakers at the median still see the central bank's benchmark overnight interest rate peaking this year in the 5.50%-5.75% range, just a quarter of a percentage point above the current range. But from there, the Fed's updated quarterly projections show rates falling only half a percentage point in 2024 compared with the full percentage point of cuts anticipated at the meeting in June. Interest rate sensitive two-year Treasury yields hit 17-year highs on Wednesday after the Fed decision. "It looks as though the Fed is trying to send as hawkish a signal as it possibly can," said Gennadiny Goldberg, interest rate strategist at TD Securities. The yen was down 0.13% versus the greenback at 148.05 per dollar after the Fed decision.
Persons: Dado Ruvic, Karl Schamotta, Schamotta, Jerome Powell, Gennadiny Goldberg, Dominic Bunning, BoE, Masato Kanda, Janet Yellen, bitcoin, Saqib Iqbal Ahmed, Herbert, Joice Alves, Brigid Riley, Marguerita Choy, Jonathan Oatis Organizations: REUTERS, U.S, Federal Reserve, TD Securities, Bank of England, Reuters, FX Research, HSBC, Washington, Treasury, Thomson Locations: Toronto, Japan, U.S, New York, London, Tokyo
The U.S. dollar index , which measures the currency against a basket of rivals, was 0.1% lower at 105.00. The pound was volatile, last down 0.23% to $1.2364 after touching its lowest in almost four months following data showing UK inflation slowed more than expected in August. "This can drag GBP down, especially against the USD where pricing for rate cuts may already be overstretched". The yen flattened at 147.87 after touching a fresh 10-month weak-point against the dollar of 148.17 ahead of the Fed decision. The offshore yuan was unchanged at 7.3055 after China met market expectations by keeping its benchmark lending rates unchanged on Wednesday.
Persons: Dado Ruvic, BoE, Dominic Bunning, Bunning, Goldman Sachs, Powell, Elsa Lignos, Masato Kanda, Janet Yellen, Joice Alves, Brigid Riley, Gerry Doyle, Emelia Organizations: REUTERS, Federal Reserve, Bank of England, U.S, Reuters, FX Research, HSBC, FX, RBC Europe, Washington, Treasury, Bank of Japan's, Thomson Locations: Japan, U.S, China, London, Tokyo
We're bullish on the euro despite volatility, HSBC says
  + stars: | 2023-05-30 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe're bullish on the euro despite volatility, HSBC saysDominic Bunning, head of European FX research at HSBC, explains why there are "a lot of reasons for optimism" about Europe's "broader picture."
LONDON, May 5 (Reuters) - The pound rose to just shy of a one-year high against the dollar on Friday, and to a one-month high against the euro, as traders eyed the Bank of England's interest rate decision next week. Sterling was up 0.21% at $1.26 on Friday, after reaching $1.263 earlier in the session, the highest since late May last year. The euro was down 0.14% against the pound at 87.49 pence, after earlier falling to 87.42 pence, the lowest since April 6. The European Central Bank on Thursday raised rates by 25 bps, a step down in the pace of monetary tightening. Traders broadly expect the Bank of England to raise rates by 25 basis points to 4.5% on Thursday next week, according to pricing in derivatives markets.
JB and I are not on speaking terms these days," said Ken Griffin, the billionaire hedge-fund manager, referring to JB Pritzker, the Democratic governor of Illinois. As Florida rolled back pandemic restrictions more quickly than Chicago, even more Citadel employees migrated south. Ken Griffin's hedge fund has had a run of eye-popping returns since 2020. Others worry that it gives Griffin's hedge fund an unfair advantage. Hundreds of Citadel employees, partners, and families gathered at the Orange County Convention Center in Orlando Florida.
Restrictions in Beijing and elsewhere tightened further on Tuesday, though currency traders seemed to think the previous day's moves were sufficient. In Europe on Tuesday, data from the European Central Bank showed the euro zone's current account deficit narrowed in September. In cryptocurrencies, bitcoin fell to a new two-year low of $15,479 on Monday, another victim of Monday's rush to the dollar, and also amid jitters about the health of crypto broker Genesis. The lending unit suspended redemptions last week, citing fallout from the collapse of FTX, which filed for bankruptcy on November 11. Reporting by Rae Wee and Alun John; editing by Kim Coghill, Jason Neely and Emelia Sithole-MatariseOur Standards: The Thomson Reuters Trust Principles.
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