MNI BRIEF: Canada Commits To Just One Of Three Fiscal Anchors

MNI BRIEF: German Insolvency Rate Slows, 2025 Pickup Expected

MNI BRIEF: Brazil Not Even Close To Fiscal Dominance - David

CORRECTED-MNI BRIEF: Brazil Inflation Rises To 4.87% In Nov

MNI China Daily Summary: Tuesday, December 10

MNI: USDA: 2024/2025 CORN PRODUCTION EST 15.14B BSL

EZ/UK T-Bill Calendar: 12-Month BOT Auction on Wednesday

EZ/UK Bond Supply Calendar: 4.25% Jul-34 Gilt Due Wednesday

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

GBP: Weakness Stems From Fading Inf. Expectations, Rates Gyrations

GBP
  • While EUR weakness so far Friday is easy to write off on the political uncertainty stemming from France, the strong reversal for GBP is less clear in terms of catalysts. EUR/GBP has bounced well off the multi-year low printed this morning at 0.8397, while the sell-off in GBP/CHF and GBP/CAD has been much more extreme. GBP/CHF has now broken below the 100-dma for the first time since January. 
  • GBP weakness followed the drop to new multi-year lows in IPSOS inflation expectations data this morning, accelerating through the NY crossover on likely profit-taking as markets unwind the net long position in the currency. We noted earlier this week that GBP net length reached the largest across across G10 at 16.1% of open interest in last week's CFTC data (correct as of Tues 6th close). 
  • Moves also coincide with considerable pressure in UK rates; the Gilt curve is lower by near 7.5bps in the longer-end, while BoE pricing for year-end reaches 45bps of cuts - the most since in nearly a month. 
BulletCEEMEAGlobalUK
BulletCEEMEAGlobalUK

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.