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[1/2] The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, November 14, 2022. As soon as these numbers can start coming down, even if it's a slow walkdown in inflation, the market will be relieved." MSCI's gauge of stocks across the globe (.MIWD00000PUS) gained 1.55%, while its emerging markets index (.MSCIEF) rose 2.35%. The pull-back we've seen, the dollar sells off last week sharply, some of the currencies were three standard deviation moves." Data out on Tuesday showed that the British unemployment rate rose in September.

☆ Dollar slides, CPI data suggests Fed could slow pace of rate hikes
▼ + stars: | 2022-11-10 | by ( Herbert Lash | ) www.reuters.com time to read: +5 min

"Inflation is clearly moving in the right direction, and that keeps a more hawkish Fed at bay," he said. The spike higher in the yen versus the dollar stirred speculation the Bank of Japan intervened, which analysts doubted. Fed funds futures priced in a drop in expectations for the U.S. central bank's peak target rate, which fell below 5%. The likelihood of a 50-basis-point rate hike by the Fed instead of a 75-basis-point increase in December rose to 71.5%. CPI rose 7.7% in October on a year-over-year basis, down from 8.2% in the prior month, as headline inflation fell below 8% for the first time since February.

☆ Instant View: Comfortably cool U.S. CPI suggests aggressive Fed hikes taking hold
▼ + stars: | 2022-11-10 | by ( ) www.reuters.com time to read: +5 min

read moreMARKET REACTION:STOCKS: S&P 500 futures turned sharply higher and were up 3.1%BONDS: The yield on 10-year Treasury notes tumbled and was down 21.5 basis points at 3.927%; The two-year U.S. Treasury yield was down 26.6 basis points at 4.362%. The dollar index was off 1.3%COMMENTS:BRIAN JACOBSEN, SENIOR INVESTMENT STRATEGIST, ALLSPRING GLOBAL INVESTMENTS, MENOMONEE FALLS, WISCONSIN“Well, that was a relief. And I think the expectation now is the Fed hikes rates 50 basis points in December. ART HOGAN, CHIEF MARKET STRATEGIST, B. RILEY WEALTH, NEW YORK"A softer than expected inflation report is acting as a tailwind for markets. "Given just this data, it would allow the Fed to raise by only 50 basis points rather than 75 at the next meeting.

☆ Sterling set for biggest daily gain since 2017 after U.S. CPI
▼ + stars: | 2022-11-10 | by ( Joice Alves | ) www.reuters.com time to read: +2 min

LONDON, Nov 10 (Reuters) - Sterling was set for its biggest daily gain since January 2017 against a weakening U.S. dollar on Thursday after U.S. consumer prices rose less than expected, opening the way for the Federal Reserve to slow the pace of its interest rate hikes. After falling 1.6% on Wednesday, the pound leapt 2.86% to a session high of $1.1685, hitting its highest since Sept. 13. "The CPI report has reinforced the sell-off momentum in the dollar," said Lee Hardman, currency strategist at MUFG in London. Cable Nov. 10Against the euro , sterling jumped 1.2% to 87.15 pence, reversing a 1% fall on Wednesday and setting the UK currency on track for its biggest daily gain against the single currency in one month. "Sterling may have become a little oversold yesterday," Jeremy Stretch, head of G10 FX strategy at CIBC, said.

☆ Comfortably cool US CPI suggests aggressive Fed hikes taking hold
▼ + stars: | 2022-11-10 | by ( ) www.reuters.com time to read: +5 min

read moreMARKET REACTION:STOCKS: S&P 500 futures turned sharply higher and were up 3.1%BONDS: The yield on 10-year Treasury notes tumbled and was down 21.5 basis points at 3.927%; The two-year U.S. Treasury yield was down 26.6 basis points at 4.362%. And I think the expectation now is the Fed hikes rates 50 basis points in December. ART HOGAN, CHIEF MARKET STRATEGIST, B. RILEY WEALTH, NEW YORK"A softer than expected inflation report is acting as a tailwind for markets. Next, we immediately turned our attention to the CPI and that clearly came in better than expected. "Given just this data, it would allow the Fed to raise by only 50 basis points rather than 75 at the next meeting.

☆ 3 Markets rejoice after surprisingly cool inflation report
▼ + stars: | 2022-11-10 | by ( ) www.reuters.com time to read: +9 min

YUNG-YU MA, CHIEF INVESTMENT STRATEGIST, BMO WEALTH MANAGEMENT, CHICAGO“The better-than-expected CPI numbers are welcome but show a lot of underlying volatility. What Powell said is that we are going to need a few more reads on good CPI data before he can say we’re done." Shelter is the main contributor to inflation and everyone should know by now that it’s a garbage indicator of where inflation is headed. ART HOGAN, CHIEF MARKET STRATEGIST, B. RILEY WEALTH, NEW YORK"A softer than expected inflation report is acting as a tailwind for markets. “The good news is that we saw a significant sequential improvement, inflation is clearly moving in the right direction.

☆ Sterling slumps ahead of BoE decision after Fed hikes rates again
▼ + stars: | 2022-11-03 | by ( Harry Robertson | ) www.reuters.com time to read: +3 min

The Fed raised interest rates by 75 basis points (bps) for the fourth consecutive meeting on Wednesday, taking the target range to 3.75% to 4%. Michael Quinn, senior trader at Monex Europe, said the drop in sterling was driven by bets that the BoE will struggle to raise rates as high as the Fed. Higher rates - or the expectation of them - traditionally boost a country's currency by making investments there look more attractive. According to futures market pricing, traders think it's almost certain the BoE will raise rates by a lower 50 bps in December. Yet they think there's a 58% chance the Fed opts for another 75 bps hike .

Markets are anticipating a potential slowdown in the pace of Fed hiking," said Lee Hardman a currency analyst at MUFG. The aggressive pace of Fed tightening has sent the dollar higher. Traders and economists predict another 75 basis point increase next Wednesday, but there is a growing view that it will slow to half a point in December. The benchmark 10-year U.S. Treasury yield continued its descent from last week's multi-year high of 4.338%, and was last down seven basis points at 4.038%. That would be the second consecutive reduction in the size of rate rises after a 100 basis point move in July and 75 basis points last month.

☆ Sterling clings to bulk of U-turn-driven gains as dollar firms
▼ + stars: | 2022-10-14 | by ( Alun John | ) www.reuters.com time to read: +2 min

LONDON, Oct 14 (Reuters) - Sterling fell against a strengthening dollar on Friday, though held on to most of its gains from the previous day on reports the British government will reverse more of its controversial mini-budget. That plan triggered turmoil in financial markets, sending yields on British government bonds soaring and the pound to a record low of $1.0327. Register now for FREE unlimited access to Reuters.com RegisterTruss is due to hold a press conference at 1300 GMT. The dollar rebounded on Friday after sliding against most other major currencies on Thursday. Register now for FREE unlimited access to Reuters.com RegisterReporting by Alun John; Editing by Frank Jack Daniel, Kirsten DonovanOur Standards: The Thomson Reuters Trust Principles.

☆ Sterling falls for a fifth day; turmoil dogs the bond market
▼ + stars: | 2022-10-11 | by ( Amanda Cooper | ) www.reuters.com time to read: +4 min

LONDON, Oct 11 (Reuters) - The pound fell for a fifth day on Tuesday as the turmoil engulfing UK government bond markets forced the Bank of England to step in yet again to attempt to stem a damaging sell-off in the country's debt. Sterling fell 0.3% to $1.1036, and was also down 0.3% versus the euro at 88.00 pence. If you have a look at the population of holders of long-dated UK assets - anything that is 15-20 years - it's mostly domestic funds," ADM Investor Services Chief Economist Marc Ostwald said. The pound promptly nosedived and the gilts market went into a tailspin, putting pension funds at risk of insolvency. But sterling's problems extend beyond the liquidity crunch in the gilts market.

☆ Plunging pound pauses as investors await policy response
▼ + stars: | 2022-09-27 | by ( Tom Westbrook | ) www.reuters.com time to read: +3 min

On Friday and again on Monday the pound plunged, finding a record low of $1.0327 as investors question Britain's economic gambit of unfunded tax cuts to spur growth. Sterling has dropped 5% since Thursday and 21% this year against a backdrop of an ever stronger dollar. As the pound fell on Monday, the dollar surged to new highs on the euro and many more. "Everyone's got this hope that the dollar is peaking and peaking and peaking, but it's just been far too premature," said Paul Mackel, global head of FX research at HSBC in Hong Kong. China's yuan also hit a 2-1/2 year low on Monday and was steady at 7.1639 on Tuesday.

☆ Reactions: Britain's pound crumbles to record lows in firesale of UK assets
▼ + stars: | 2022-09-26 | by ( ) www.reuters.com time to read: +8 min

Wads of British Pound Sterling banknotes are stacked in piles at the Money Service Austria company's headquarters in Vienna, Austria, November 16, 2017. REUTERS/Leonhard Foeger/File PhotoLONDON, Sept 26 (Reuters) - Britain's pound plunged to record lows on Monday and bonds were slammed for a second day, as investors punished UK assets after the government's mini-budget announcement last week. The presentation of the mini-budget was received quite badly by the markets – sterling literally collapsed. The significant tax cuts announced by the Treasury Secretary cause concerns for the currency markets because of rising government debt." One is the loss of confidence in UK fiscal policy and that won't help sterling.

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