Finance News
By James Thorp
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Dollar Firms as Inflation Beats Forecasts. The U.S. inflation print came in above what analysts had penciled in.
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Bank of England in the Crossfire. The pound's problem isn't just the dollar. It's also that the Bank of England is sitting in a…
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What Traders Are Watching Now. The forex market's sensitivity to U.S. data is nothing new, but Thursday was a sharp reminder of…
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The pound dropped Thursday. It had looked decent earlier in the day — touching $1.2510 at its peak — but U.S.
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By the close of the London session, sterling sat at $1.2425 against the dollar. That's not a catastrophic number, but the speed of the reversal is what caught traders off guard.
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The U.S. inflation print came in above what analysts had penciled in. That's basically all the dollar needed.
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The greenback didn't just squeeze the pound, either. The euro felt it. The yen felt it. Pretty much every major currency took some heat as the dollar index climbed.
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It's worth being clear about what the inflation numbers mean for the Fed. No decision has been announced. No rate hike is confirmed.
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That uncertainty is weighing on sterling. When you've got a central bank that's hard to read and a rival currency getting a fresh boost from inflation data, the pound's got a…
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Related: Pound Plummets to $1.2450 as Weak Data Fuels Dollar Recovery
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And the Bank of England doesn't operate in a vacuum. What the Fed does matters. If the Federal Reserve signals a more aggressive stance on rates, that puts the Bank of England in…
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Traders are now watching upcoming UK economic reports pretty closely. Those releases could shift the calculus.
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Short-term, the focus is on central banks. Both the Fed and the Bank of England are under the microscope right now, and any hint of a policy shift — in either direction — could…
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Read also: New York Town Considers Moratorium on Bitcoin Mining and AI Data Centers
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Longer term, the pound's trajectory depends on a mix of things that are still unclear. UK growth data, wage figures, inflation at home — all of it feeds into what the Bank of…
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