UK’s real-terms pay growth could slow to less than 1% by end of 2016

Britain’s long-awaited pay recovery this year will quickly evaporate in 2016 unless productivity significantly improves, a leading thinktank has warned. The Resolution Foundation said real-terms pay growth could slow to less than 1% by the end of next year, from around 2.5% at present. That would be its worst-case scenario with productivity growth failing to pick up and inflation taking off more than expected…

Failure of strong pound to hold down inflation could prompt early rate hike: BOE official

A senior Bank of England official has raised the prospect of interest rates rising sooner than expected if economists are proved wrong about the power of a strong pound to hold down inflation. Kristin Forbes, one of the nine rate-setting members of the Bank’s monetary policy committee, questioned whether current economic models were accurately reflecting the relationship, or “pass-through”, between exchange rates and the outlook for inflation…

What would ‘Brexit’ from the EU look like?

David Cameron’s electoral triumph has brought the prospect of a British withdrawal from the EU one step closer. The prime minister has vowed to reshape Britain’s ties with Europe before putting EU membership to a vote by 2017. But what would “Brexit” – a British exit from the 28-nation EU – look like? Eurosceptics argue that withdrawal would reverse immigration…

FX markets still open to volatility

Expectations that the US Federal Reserve will increase interest rates later this year, when they are set to remain on hold elsewhere, has been the key factor driving the dollar higher. Indeed, further monetary easing across the globe in recent months highlighted the emerging difference between the stance of monetary policy in the US and elsewhere…

Oil prices spike as militants attack Iraq’s largest oil refinery

Get ready for more pain at the pump. As Iraqi government forces battle Sunni rebels for control of the country’s biggest refinery, gasoline prices have hit their highest for this time of the year since 2008. June is typically when prices ease up. So what gives? Oil and Iraq…

UK BOE Interest Rate | March 6, 2014 | Currency News

UK BOE Interest Rate Decision is likely to remain unchanged and most likely a non-event as Governor Carney should not surprise the market with a change or an accompanied statement. 7:00am (NY Time) UK BOE Interest Rate Forecast 0.50% Previous 0.50% 7:00am (NY Time) APT (Asset Purchasing Target) Forecast 375B Previous 375B DEVIATION: 0.25% interest rate / […]

UK Services PMI | March 5, 2014 | Currency News

UK Services Purchasing Manager Index will be released today at 4:28am (NY Time) and it’s expected to be at 58, and similarly to the Manufacturing PMI, GBP should react accordingly if we get a strong surprise today. 4:28am (NY Time) UK Services PMI Forecast 58.0 Previous 58.3 Deviation: 2.5 (BUY GBP 60.5 / SELL GBP […]

Daily Forex Market Review 02/25/14 (+63 pips)

Today’s Trade Result: +63 pips July 2013: +160 pips June 2013: +336 pips May 2013: -50.5 pips April 2013: +851.5 pips March 2013: +327.5 pips February 2013: +127.5 pips January 2013: +1107.5 pips December 2012: +29 pips November 2012: +35.5 pips October 2012: +259.5 pips September 2012: +112.5 pips August 2012: +365.5 pips July 2012: […]

UK BOE Interest Rate | February 6, 2014 | Currency News

UK BOE Interest Rate Decision is likely to remain unchanged and most likely a non-event as recent economic data supports a wait-and-see approach… However, we’ll be ready to trade if BOE surprises the market today. 7:00am (NY Time) UK BOE Interest Rate Forecast 0.50% Previous 0.50% 7:00am (NY Time) APT (Asset Purchasing Target) Forecast 375B Previous […]

UK Services PMI | February 5, 2014 | Currency News

UK Services Purchasing Manager Index will be released today at 4:28am (NY Time) as usual, and this release should have plenty of impact on the direction of the Sterling, especially considering that based on correlation to the Euro, unless we get a strong release, market could turn on the GBP. 4:28am (NY Time) UK Services […]

UK Prelim GDP q/q | January 28, 2014 | Currency Trading

UK Prelim GDP is the probably the most tradable GDP release out of the three since it’s the first look at the economic conditions in UK for the final quarter of 2013.  A strong release will add more support for the GBP whereas a weak release could drive GBP weaker. 4:30am (NY Time) UK Prelim […]

Daily Forex Market Review 01/17/14 (+80 pips)

Today’s Trade Result: +80 pips July 2013: +160 pips June 2013: +336 pips May 2013: -50.5 pips April 2013: +851.5 pips March 2013: +327.5 pips February 2013: +127.5 pips January 2013: +1107.5 pips December 2012: +29 pips November 2012: +35.5 pips October 2012: +259.5 pips September 2012: +112.5 pips August 2012: +365.5 pips July 2012: […]

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