sterling

Pound tumbles, gilts rally after BoE nods at rate cut ahead

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Pound tumbles, gilts rally after BoE nods at rate cut ahead

– The Bank of England (BoE) kept its benchmark interest rate at 5.25%, the highest since 2008.
– The decision followed data showing inflation fell to its lowest in almost two-and-a-half years but remained high.
– After the BoE’s decision, the pound fell by as much as 0.48% to a session low of .2726 and was down 0.3% against the euro at 85.63.
– Two-year gilt yields dropped by as much as 12.8 basis points to 4.103%.
– The BoE’s interest rate-setters voted 8-1 to keep borrowing costs at 5.25%.
– Britain’s headline inflation rate fell to 3.4% in February from 4.0% in January, the highest in the Group of Seven.
– Money markets were pricing a 75% chance of a BoE rate cut in June after the decision.
– The Swiss National Bank delivered a surprise quarter-point rate cut, the first major central bank to dial back tighter monetary policy aimed at tackling inflation.
– The Bank of Japan raised rates for the first time in 17 years, and the Federal Reserve indicated it might cut rates three times this year.
– A survey showed British businesses continued to recover from recession, with inflationary pressures persisting.

Easing UK inflation keeps BoE on track for rate cuts later in 2024

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Easing UK inflation keeps BoE on track for rate cuts later in 2024

British inflation slowed in February, with consumer prices rising by 3.4% in annual terms after a 4.0% increase in January. This was the weakest rate of inflation since September 2021. Core inflation, which excludes energy, food, and tobacco prices, also slowed to 4.5% from 5.1% in January. Despite the moderation, Britain still has the highest rate of headline inflation among the Group of Seven advanced economies, with consumer prices having increased by more than 21% since the end of 2020. The Bank of England (BoE) has indicated that underlying inflation pressures remain too persistent for it to cut interest rates now, although it has signaled that lower borrowing costs are likely later this year. Finance Minister Jeremy Hunt mentioned that the fall in inflation could help the government with its goal of abolishing social security taxes, provided it does not lead to increased borrowing or cuts in funding for public services.

Last-gasp goals earn Chelsea FA Cup quarter-final win over Leicester

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Last-gasp goals earn Chelsea FA Cup quarter-final win over Leicester

Chelsea substitutes Carney Chukwuemeka and Noni Madueke scored stoppage time goals to secure a 4-2 victory over Leicester City, advancing Chelsea to the FA Cup semi-finals. Marc Cucurella and Cole Palmer scored Chelsea’s first two goals. Raheem Sterling missed a penalty. Axel Disasi’s mistake led to a Leicester goal, and Stephy Malvididi equalized for Leicester. Leicester was reduced to 10 men after Callum Doyle’s red card.

EURGBP gains ground following UK jobless, German CPI

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EURGBP gains ground following UK jobless, German CPI

– Euro-Sterling was trading below the mid-0.8500s during early European trading on Tuesday.
– The EURGBP cross was trading around 0.8540, gaining 0.16% on the day.
– The UK ILO Unemployment Rate increased to 3.9% in the three months to February from 3.8%.
– The number of people claiming jobless benefits in the UK rose by 16,800 in February.
– The UK Employment Change was -21,000 in January.
– The German Consumer Price Index (CPI) for February was 0.4% MoM and 2.5% YoY.
– The German Harmonized Index of Consumer Prices (HICP) for February was 0.6% MoM and 2.7% YoY.
– Upcoming data releases include the UK monthly GDP, Industrial Production, Manufacturing Production, and Trade Balance for January.

Bitcoin hits record above $71,000 as demand frenzy intensifies

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Bitcoin hits record above $71,000 as demand frenzy intensifies

– Bitcoin reached a record high above ,000 on Monday.
– Britain’s financial watchdog will now allow recognized investment exchanges to launch crypto-backed exchange-traded notes.
– Bitcoin’s price rose by as much as 4.8 percent to ,677 in European trading, with gains for the year at 70 percent.
– The surge in Bitcoin’s value is attributed to an influx of cash into new spot bitcoin exchange-traded funds and expectations of a Federal Reserve interest rate cut.
– Capital flows into the 10 largest U.S. spot bitcoin exchange-traded funds reached almost billion in the week to March 8.
– The supply of Bitcoin, limited to 21 million tokens, is expected to get tighter in April due to the halving event, which occurs every four years and reduces the rate of new supply and the reward for miners.
– The UK regulator stated that crypto exchange-traded notes (ETNs) would be available only for professional investors.
– Asset managers hold the largest bullish position in bitcoin futures on record, with a net long position worth .5 billion.
– Ether’s price rose 2.1 percent to around ,000, driven by speculation of U.S. approval for spot ether ETFs, with a 75 percent increase in price this year.

Hollywood heads to the Oscars with ‘Oppenheimer’ the odds-on favorite

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Hollywood heads to the Oscars with ‘Oppenheimer’ the odds-on favorite

– The annual Academy Awards ceremony celebrates the best performances in film, with this year’s event expected to highlight the atomic bomb drama “Oppenheimer.”
– Jimmy Kimmel is the host for the fourth time, and the ceremony takes place at the Dolby Theatre in Los Angeles, broadcast live on ABC at 4 p.m. PDT.
– “Oppenheimer,” directed by Christopher Nolan, has 13 nominations and is the frontrunner for the best picture prize.
– The Oscars aim to celebrate two global hits, “Oppenheimer” and “Barbie,” which together earned .4 billion at the box office.
– Oscar producers plan unannounced cameos and surprises for the audience.
– Ryan Gosling and members of the Osage Nation are set to perform nominated songs from “Barbie” and “Killers of the Flower Moon,” respectively.
– Cillian Murphy is favored for best actor for his role in “Oppenheimer,” and Lily Gladstone is a contender for best actress for “Killers of the Flower Moon.”
– “Barbie” may win the original song prize for Billie Eilish’s ballad “What Was I Made For?” and could also receive awards for costumes and production design.
– Christopher Nolan could win his first directing Oscar and the award for adapted screenplay with “Oppenheimer.”

Sterling is on the move

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Sterling is on the move

The British Pound is experiencing its strongest performance against the US dollar and other major currencies in over seven months. This change is attributed to investors and traders adjusting to a new perspective on the UK’s economy, which has shown resilience despite challenges such as Brexit and geopolitical tensions. Initially, there was an expectation of four interest rate cuts by the Bank of England to address the cost of living crisis and prevent a deep recession. However, current expectations have shifted to potentially only two interest rate cuts this year, based on economic data indicating better-than-expected GDP growth and consumer spending. Additionally, comments from the Fed Chairman have led traders to believe that the Federal Reserve might implement more interest rate cuts than the Bank of England, further influencing the strength of the British Pound.