MNI BRIEF: Inflation Risks Now Shifted To Downside-BOE Ramsden

MNI: Goolsbee Says Stalled Inflation Means Wait Before Moving

MNI China Daily Summary: Friday, April 19

MNI BRIEF: China Hog Market More Balanced In Q2 - Ministry

MNI: PBOC Conducts CNY2 Bln Via OMO Fri; Liquidity Unchanged

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS FRI

MNI: BAKER HUGHES US RIG COUNT 619; OIL RIGS 511; GAS RIGS 106

EZ/UK Bond Supply Calendar: EU, UK Synd W/C 22 Apr, BoE APF Mon

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

​GBP/USD Stabilizes After Fresh Record Low, Parity Test Likely Next Focus Point​​

GBP

GBP/USD has stabilized somewhat after hitting a fresh record low of 1.0350. The pair was last around 1.0550, which is still close to 3% below NY closing levels. It continues to dominate sentiment across the G10 space.

  • Focus is now likely to rest with a potential parity test against the USD. Some option flows have already shown this as a market focus point, with a GBP put, at a 0.99 strike (expiry March next year), going through on Friday (DTCC via Bloomberg).
  • There has been a 1.00 put (expiry in 1 month) going through this morning as well, but for a much smaller notional, compared to the flow on Friday.
  • 1 week implied vol continues to climb, last at 23.13%. Intra-day highs in early 2020 were just above 35% for the 1 week, so we are still below these levels. 1 month implied was last at 18.71%.
  • With the UK government generally pushing break on the market reaction following Friday's tax cut/fiscal announcement (indeed hinting more tax cuts are coming), the early London focus is likely to be any shift in the government's stance. The BoE's reaction will be the other focus point.
BulletMarketsForeign Exchange BulletsHomepage
BulletMarketsForeign Exchange BulletsHomepage

To read the full story

Close

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.