Dollar Edges Higher; Pound Gains Ahead of Sunak’s Appointment

By Peter Nurse – The U.S. dollar stabilized at lower levels in early European trading Tuesday as traders factored in a potentially less hawkish Federal Reserve, while sterling benefited from the increased risk sentiment as Rishi Sunak prepares to become Britain’s new prime minister. At 02:55 ET (06:55 GMT), the , which tracks the … Read more

Pound Falters on Reports of Kwarteng Dismissal Ahead of Truss Announcement

By Geoffrey Smith — The fell and U.K. government bonds extended their rally on Friday after reports that Prime Minister Liz Truss will fire Kwasi Kwarteng as Chancellor of the Exchequer and abandon most of their program of unfunded tax cuts. Truss is due to hold a press conference at 08:00 ET (12:00 GMT), … Read more

Dollar Stabilizes, Pound Retreats; U.K. Government to Rein in Tax Cuts?

By Peter Nurse – The U.S. dollar stabilized in early European trading Friday after the release of another hot U.S. inflation number, while sterling retreated from sharp overnight gains amid speculation that the U.K. government is set to withdraw its plans for massive unfunded tax cuts. At 03:10 ET (07:10 GMT), the , which … Read more

Pound falls sharply after Bank of England gives bond-buying end date

London, Oct 12 (IANS) The British pound has fallen sharply against the dollar after Bank of England Governer Andrew Bailey warned that it would not extend its emergency intervention in financial markets beyond this week, after the turmoil sparked by the governments mini-budget. The currency skidded by more than a cent against the dollar to … Read more

British Pound Rebounds on Report of Extended BoE Bond Buying

By Ambar Warrick– The rebounded in Asian trade on Wednesday after a report said that the Bank of England signaled to bankers it may extend its bond-buying program beyond a Friday deadline if market conditions required it. The pound rose 0.3% to 1.0991, reversing overnight losses and briefly trading above 1.1. The Financial Times … Read more

Pound Slumps as Bank of England is Forced to Widen Gilt Purchases

By Geoffrey Smith — The dollar was broadly higher in early trading in Europe on Tuesday as the pound weakened amid fresh signs of trouble in the U.K. government bond market. The Bank of England said it would widen its purchases of Gilts to include index-linked bonds, after a disorderly selloff in the asset … Read more

Pound Wobbles Again as Kwarteng Denies Bringing Forward Spending Plans

By Geoffrey Smith — The and U.K. government markets faltered on Tuesday after Chancellor of the Exchequer Kwasi Kwarteng insisted that he won’t present a more detailed version of his spending plans for another six weeks, dashing hopes for more immediate clarity on a fiscal policy course that has spooked markets. In an interview … Read more

Dollar Surges Higher, Pound Retreats as BOE Relief Doesn’t Last

By Peter Nurse – The U.S. dollar resumed its seemingly relentless march higher in early European trading Thursday, while sterling slumped as the relief rally attached to the Bank of England’s intervention into the bond market dissipated. At 03:10 ET (07:10 GMT), the , which tracks the greenback against a basket of six other … Read more

Pound Rebound to Fade on Worries Rate Hikes Unlikely to Rescue Battered Currency

By Yasin Ebrahim – The pound steadied Tuesday after plunging to a record-low a day earlier, but the respite is likely to run out of steam as some doubt whether a jumbo-sized rate raise including emergency hikes will save the beleaguered currency. rose 0.33% to $1.0711, after falling to a record of low of … Read more

Pound Rises as BoE’s Pill Says Fiscal News Needs “Significant” Policy Response

By Geoffrey Smith — The U.K. government’s new package of unfunded tax cuts will most likely require higher interest rates, a top Bank of England official said on Wednesday. The outlook for the U.K. has changed abruptly in the wake of Kwasi Kwarteng’s so-called ‘mini-budget’, Reuters reported the Bank’s chief economist Huw Pill as … Read more