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Foreign Exchange

Sterling (GBP): special focus

Euromoney's latest coverage of the currency.

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FX pros bullish on volatility

October 2017

Savvy investors understand that one of the biggest risk factors in their portfolio is their domestic currency. This is particularly important in the UK wherethe equity market is dominated by foreign companies, the value of whose overseas operations declines when sterling strengthens.


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FX: Weaker sterling here to stay

June 2017

From strong and stable to weak and jittery, the pound bore the brunt of the surprise UK general election result, but despite May’s quick move to form a working coalition government, sterling will likely stay soft, say analysts.


FX Survey 2017: Fragile forex enters a new era

May 2017

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Two particular risk events have tested the industry’s resilience over the last year – the volatility following the UK vote to leave the European Union in June 2016 and the flash crash in sterling in October 2016.

FX: Wild ride for currency-hedged ETFs to continue apace

May 2017

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"Those investors who are denominated in sterling and already have international exposure [and therefore benefited from sterling’s decline last year] might now be tempted to switch into sterling hedged international equity exposure to try to lock in those gains."


FX: May lights a fire under sterling, for now

April 2017

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Tuesday’s announcement that UK prime minister Theresa May is calling for a snap general election caused a surge in the pound, but can sterling keep the ground it has recovered?

Sterling rally has Brexit bears scratching their heads

March 2017

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Conventional wisdom says the UK’s forthcoming exit from the European Union will be bad for the pound, but after a year in which the UK currency has lost a fifth of its value on a trade-weighted basis, there are some in the FX markets who say the worst impacts of Brexit are already priced in.


FX: Bad news better than no news as sterling surges on hard Brexit talk

January 2017

On a day many expected would see the pound sink to new depths, the currency instead responded to news that the UK would be leaving the single market by posting its best performance since the referendum – but whether the day marked a turning point or a mere relief rally, nobody can be sure.


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 headwindsMay 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 warsMarch 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 treasurersFebruary 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


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