Sterling: special focus

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Sterling has dropped to its lowest level in over two years as the prospect has heightened of further monetary easing in the UK to ward off a triple-dip recession. The Bank of England's (BoE) seeming desire for a weaker currency, and its willingness to suspend its inflation target, has only added to the pressure on the pound. Now, with the UK government mulling a possible change in the central bank's mandate, the currency looks set to face further headwinds. Euromoney investigates.

sterling strip



Weak UK economy ties Bank of England’s hands on FX intervention
July 2016
New UK prime minister Theresa May is busy shaping her administration at 10 Downing Street, but it is events taking place barely two miles away, at the Bank of England on Threadneedle Street, that are exercising the minds of those trying to predict where the pound goes next.

FX: Sterling volatility here to stay as referendum countdown begins
February 2016
The announcement of the referendum date of June 23 on UK membership of the European Union (EU) sent an already-weakening pound into a tailspin, which saw it testing multi-decade lows, but traders are divided on whether sterling has bottomed out as Brexit fears jump.

FX volatility wreaks havoc on UK corporate treasurers
January 2016
The world’s two major currencies – the US dollar and the euro – are making strong gains against the British pound, which is potentially bad news for UK multinational companies that declare their profits in sterling.

FX swings knock company earnings
May 2015
The surprise outright Conservative win in the UK election has boosted the pound against the dollar – meaning that some UK companies’ earnings are worth less.

Sterling faces Lehman moment as reality of lose-lose election sets in
April 2015
The UK has entered election mode, with concerns about the country’s political future dominating trading in sterling. Volatility is rising and investors are seeking protection in the options market.

Political and fiscal risk to pose headwinds for sterling
September 2014
Post-Scottish referendum, UK political risks have not gone away, while the fiscal picture remains dire.

Betting on UK current account-sterling relationship a risky business
July 2014
Debate rages whether current accounts drive FX moves in developed markets or whether it’s a case of correlation, rather than causation.

RMB-sterling trading gets off to a flying start
June 2014
Bankers are already seeing demand for direct renminbi-sterling deals, and anticipate a rise in volumes and market makers, since the announcement on Thursday it is now possible to directly trade these two currencies in China’s onshore interbank foreign-exchange market.

'Darling’ sterling faces strong headwinds
May 2014
The UK pound has steadily appreciated against leading currencies during the past year, as positive economic data have provided a much-needed boost – but Scotland’s looming referendum on independence and escalating fears of a UK housing bubble suggest the rally is reaching its final stages, predict analysts.

Soaring sterling in line for festive boost 
November 2013
Sterling hit its highest level since the 2008 financial crisis against the yen and a two-year high against the dollar, as the Bank of England (BoE) took a first step to normalize monetary policy in the face of a strong housing market – but it might power higher thanks to a seasonal boost.

Bank of England regime shift might inadvertently boost pound
August 2013
The move from the Bank of England to join the Federal Reserve in linking its monetary policy stance to the unemployment rate has boosted the pound; it might continue to do so as investors adjust to the new regime.
 
Proactive central bankers to keep euro and sterling in check
July 2013
Rarely have two decisions to leave interest rates on hold had such an impact on the currency market, but the Bank of England (BoE) and the European Central Bank (ECB) managed to put heavy pressure on the pound and the euro after their policy meetings on Thursday.

Sterling bears cling on as pound hits three-month high
May 2013
Sterling continues to defy bearish expectations, powering to a three-month high against the dollar after UK manufacturing data beat expectations.

European capitals scramble to arrange currency trade deals with China
May 2013

Sterling’s rebound set to run out of steam
April 2013

UK banks’ £25bn shortfall: positive for banks, negative for BoE credibility
March 2013

Don’t bet on the Bank of England to save sterling
March 2013

Sterling bears caught short, but pound still vulnerable
March 2013

Sterling plunges as pound slips inflationary anchor

March 2013

Sterling vulnerable to fresh slide; caution required over currency war reboot
March 2013

BoE King throws another grenade into bank-regulation debate in bid to shape legacy
March 2013

Special focus: Currency wars
March 2013

Bank of England's Mervyn King steals Carney’s thunder with focus on flexible inflation targeting
February 2013

Bank of England governor-designate Carney draws battle lines but recognizes uphill struggle
February 2013

Sterling slide poses hedging conundrum for treasurers
February 2013

Options market shows corporates unprepared for sterling slide
February 2013

Sterling: turning Japanese
February 2013 

UK: Sterling safe from currency war but Brexit casts a shadow
February 2013

Beware gilt market complacency after UK sovereign downgrade
February 2013

Carney set to put sterling to the test
February 2013

Sterling safe from currency war
January 2013

Bank of England’s next governor Mark Carney: a radical in a conservative job
December 2012