Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
GBP
- Prior to the June ECB meeting, EURGBP had been trading broadly in line with the 2-year ahead STIR spread (as can be seen in the bottom chart below). There had been some small divergences but in general the correlation had held pretty well since the beginning of the year. Through this time, UK-US rate differentials have also been driving GBPUSD.
- However, since the ECB meeting the correlation between Euribor-SONIA spreads and EURGBP seems to have broken down with GBP stronger against EUR than would be expected. At the same time (and it has only been three weeks), GBPUSD's correlation with SONIA-SOFR spreads has remained just as strong.
- Of course, this also informs us that the euro is trading weaker against USD than rate differentials would have suggested - but the resilience in the correlation between GBPUSD and UK-US spreads remains notable.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok