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Yahoo
14-07-2025
- Business
- Yahoo
Pound hits three-week low as Bank of England governor hints at interest rate cut
The pound slipped to a three-week low on Monday after Bank of England governor Andrew Bailey signalled the central bank could make more substantial interest rate cuts if the labour market weakens further. Sterling fell 0.2% to $1.3467 in morning trading, its lowest level since 23 June, as investors digested Bailey's remarks that "slack" was beginning to open up in the UK economy. The pound was flat against the euro at €1.1541. Bailey told The Times: 'I really do believe the path is downward' for interest rates. Bank rate is currently 4.25%, following four quarter-point cuts in the last year, with the Bank next scheduled to set rates on 7 August. Bailey added: 'If we saw the slack opening up much more quickly, that would lead us to a different conclusion. 'I think the path [for interest rates] is down. I really do believe the path is downward but we continue to use the words 'gradual and careful' because … some people say to me, 'Why are you cutting when inflation's above target?'" Read more: FTSE 100 LIVE: FTSE up and European markets dip amid fresh Trump tariff threats Bailey's comments come amid increasing market speculation that slowing wage growth and moderating inflation could give the central bank scope to accelerate its easing cycle. The US dollar index ( which tracks the greenback's value against six major currencies, was muted at 97.88 at the time of writing. In other currency moves, the pound was flat against the euro, trading at €1.1541 at the time of writing. Oil prices edged higher on Monday, building on gains of more than 2% from the previous session, as traders weighed the prospect of further US sanctions on Russia against signs of increased Saudi production and renewed global trade tensions. Brent crude (BZ=F) climbed 0.8% to trade at $70.92 a barrel, while West Texas Intermediate (CL=F) gained a bit over 1% to $69.21. Prices found support from signs that Washington may tighten pressure on Moscow over its war in Ukraine. US president Donald Trump on Sunday pledged to send Patriot air defence systems to Ukraine, amid intensifying Russian bombardment of urban areas. He is expected to make a 'major statement' on Russia on Monday. Trump has grown increasingly frustrated with Russian president Vladimir Putin over the lack of progress in peace talks and the continuing escalation of attacks on Ukrainian cities. Read more: Chinese EVs take off in the UK as BYD closes in on Tesla A bipartisan bill in Congress aimed at imposing further sanctions on Russia gained traction last week but has yet to secure Trump's full backing. The measure is seen as an attempt to bring Moscow to the negotiating table in good faith. However, gains in oil were capped by reports of increased output from Saudi Arabia, the world's largest crude exporter, as well as fresh trade concerns sparked by the US president's comments over the weekend. Trump raised the possibility of new tariffs on the European Union and Mexico, reviving worries over a potential flare-up in global trade disputes. These developments injected uncertainty into the demand outlook for crude. Meanwhile, speculation that the Federal Reserve may ease monetary policy added further support to oil prices. Expectations of lower interest rates have weighed on the US dollar, making commodities priced in the currency more attractive and potentially lifting demand. Gold prices climbed on Monday, supported by renewed safe-haven demand after Trump threatened to impose sweeping new tariffs on imports from the European Union and Mexico, reigniting fears of escalating global trade tensions. Gold (GC=F) futures were 0.6% higher at $3,382.70 an ounce, while spot gold gained 0.4% to $3.372.24 per ounce after touching a three-week high of 3,385.90 earlier in the session. "We are seeing safe-haven demand coming back into the picture due to this uncertainty on the implementation of U.S. global trade tariffs policy," OANDA senior market analyst Kelvin Wong said. "Near-term outlook looks positive for gold and if gold prices are able to have a daily close above $3,360, it could potentially advance higher towards the next resistance level at $3,435." Stocks: Create your watchlist and portfolio The gains came after Trump on Saturday said the US would impose a 30% tariff on imports from Mexico and the EU starting 1 August, following weeks of stalled negotiations with both trading partners. The announcement marked a sharp escalation in trade rhetoric, raising concerns over global economic growth and stoking investor appetite for safe-haven assets. In response, officials from both the EU and Mexico criticised the proposed tariffs as unfair and disruptive. Brussels said it would maintain its suspension of retaliatory measures until early August, in a bid to keep diplomatic channels open and pursue a negotiated solution. In equities, the FTSE 100 (^FTSE) ticked higher, up 0.2% to 8,959.61 points. For more details follow our live coverage in to access your portfolio
Yahoo
08-07-2025
- Business
- Yahoo
Pound pushes higher as Trump hints at tariff climbdown
The pound was higher against the dollar on Tuesday morning, up 0.3% to $1.3638, after US president Donald Trump suggested he could make further concessions on trade tariffs. Sterling's gains came as markets responded to signs of a more conciliatory stance from the White House on its trade agenda. The US administration has issued formal letters to 14 countries outlining revised tariff rates, due to take effect on 1 August. The move extends a 90-day delay on so-called 'reciprocal' tariffs that had been scheduled to expire on Wednesday. However, during a dinner with visiting Israeli prime minister Benjamin Netanyahu, Trump hinted that the August deadline might not be set in stone. 'I would say firm, but not 100% firm,' he said. Read more: 'I returned to my old office to sell ties after being made redundant' Asked if the tariff rates were final, he added: 'I would say final – but if they call with a different offer, and I like it, then we'll do it.' The US Dollar Index ( which tracks the greenback against a basket of six major currencies, slipped 0.1% to 97.26 after the comments. In other currency moves, the pound was muted against the euro, trading at €1.1602 at the time of writing. Gold prices inched up during early European trading hours as the uncertainty around tariff developments maintains the precious metal's safe-haven appeal. Gold futures were steady at $3,343.60 an ounce, while spot gold climbed 0.7% to $3.334.57 per ounce. "Trump's latest tariff letters are keeping gold in the frame for investors as an uncertainty hedge, but a resilient US dollar and higher bond yields are constraining the metal's immediate upside potential," KCM Trade chief market analyst Tim Waterer said. Gold, which offers no yield, tends to struggle in environments of rising bond yields. A stronger US dollar also weighs on the metal by making it more expensive for buyers using other currencies. "Traders seem relatively unfazed by Trump's tariff letters, and with safe-haven demand largely contained at this point, gold is still just biding its time waiting for a topside breakout to potentially occur," Waterer said. Oil prices retreated on Tuesday after rising almost 2% in the previous session, as markets digested fresh US trade developments and a larger-than-expected supply increase from Opec+ for August. Brent crude lost 0.3% to $69.39 a barrel, while West Texas Intermediate dropped by the same margin to trade at $67.71. "Prompt demand remains healthy on the back of seasonal factors. The question remains if forward demand will maintain to absorb the larger-than-expected supply from Opec+," said Emril Jamil, a senior analyst at LSEG Oil Research. Over the weekend, the Organisation of the Petroleum Exporting Countries and its allies, known collectively as Opec+, agreed to raise production by 548,000 barrels per day in August. The increase surpasses the 411,000 bpd hikes implemented over the past three months and effectively rolls back nearly all of the 2.2 million bpd in voluntary cuts previously enacted. Additional signs of robust demand came out of India, the world's third-largest oil consumer, where government data showed fuel consumption in June rose 1.9% year on year. Stocks: Create your watchlist and portfolio In equities, the FTSE 100 (^FTSE) was flat, trading at 8,810 points. For more details follow our live coverage in to access your portfolio
Yahoo
01-07-2025
- Business
- Yahoo
Gold jumps as weak dollar, trade talks uncertainty drive safe-haven demand
Gold futures prices jumped more than 1.5% on Tuesday buoyed for a second consecutive day as investors look to president Donald Trump's looming deadline of 9 July to broker trade deals. Futures prices rose to near $3,360 an ounce by the afternoon. Traders are pricing in higher odds of at least two US interest rate cuts before 2026. With markets increasingly optimistic that a rate cut from the Federal Reserve could be around the corner, Thursday's jobs report takes on even more importance this week. Investors will be watching for signs of cooling in the labour market, which could bolster the case for a cut sooner rather than later. Spot prices also rose 1.6%. The yellow metal is now trading about $200 short of record highs earlier this year. Prices were supported by a weak dollar. Gold tends to have an inverse relationship to the dollar, as it is typically traded in the US currency, so weakness in the greenback makes the precious metal cheaper for overseas buyers. 'Gold, despite its recent losses, has the most potential to gain in the short term if the US dollar continues to decline,' Commonwealth Bank of Australia analyst Vivek Dhar said in a note, reported by Bloomberg. While the dollar declined, the pound headed higher once again, trading just below the $1.38 mark. For the year to date, sterling has gained almost 9.8% due to weakness in the greenback. The last time the pair reached this level was late 2021. The dollar index ( dipped around 0.5%, having suffered its worst start to the year since 1973. Volatility in president Donald Trump's trade policies has led to a pullback in confidence in US assets this year. The market is now looking to ISM manufacturing and JOLTs data, said analysts at ING in a note. "On the former, the market will be looking at the trade-off between higher prices paid and lower demand/employment. Any softer prices paid with soft demand/new orders/employment is a dollar negative. "Equally, higher prices paid and reasonable demand could be a mild dollar positive. And on the JOLTS data, any downside surprise to the 7300k consensus level could hit the dollar on the view that the resilient jobs market is starting to creak after all," they added. The pound also ticked slightly higher against the euro, following flash inflation estimates from the bloc. Sterling traded around 1.16 euro as data showed June's inflation rate was around the 2% target the European Central Bank looks to when setting interest rates. Oil prices continued to normalise on Tuesday afternoon, with futures back below levels seen before the escalation of the conflict between Iran and Israel. Brent crude futures headed 0.7% higher, hitting $67.20 a barrel, while West Texas Intermediate rose 0.7% to $65.56 a barrel. "The Middle East risk premium has completely disappeared," said David Morrison, senior market analyst at fintech and financial services provider Trade Nation. "It got knocked out of the oil price at the beginning of last week as it became apparent that Iran, Israel and the US were, despite all the airstrikes and missile launches, making efforts to avoid damage to oil and gas infrastructure." The threat of disruption to the Strait of Hormuz has also receded, with the ceasefire between Israel and Iran apparently on solid footing following a shaky start. "Market participants remain focused on geopolitical developments, particularly around tariffs," added Morrison. "However, the lack of a clear market-moving catalyst has kept oil in a holding pattern for now, with traders awaiting fresh signals to determine the next move. Many may be content to sit on their hands ahead of the OPEC+ meetings this weekend."
Yahoo
30-06-2025
- Business
- Yahoo
Gold prices edge higher as dollar weakens
Gold prices inched higher on Monday morning, and continue to trade near all-time highs, with weakness in the dollar offering support to the precious metal. Gold futures (GC=F) were up 0.2% at $3,293.30 an ounce at the time of writing, while the spot gold price climbed 1.4% to $3,286.03 per ounce. Meanwhile, the US dollar ( index, which measures the greenback against a basket of six currencies, was down 0.2% to 97.17. Gold tends to have an inverse relationship to the dollar, as it is typically traded in the US currency, so weakness in the greenback makes the precious metal cheaper for overseas buyers. Read more: FTSE 100 LIVE: Markets higher as US-UK trade deal comes into force The rise in gold prices came despite more positive developments on trade, with investors typically turning to the precious metal as a safe-haven amid uncertainty. Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "Exuberance is set to continue at the start of the week, as more trade deal scores are on the doors and geopolitical tensions have eased off. "Talks between Canada and the US are back on the cards, after an agreement to scrap a tax targeting American tech firms," she said. "There will now be speculation that other countries, like the UK, will be forced to drop their own taxes targeting the biggest tech firms in the world when further talks take place." Streeter added: "The trade deal announced again between the US and China, has poured more optimism into glass half full attitudes. Even though it's still pretty scant on detail, the agreement looks set to give US companies better access to crucial rare earth minerals, exported from China." The pound dipped 0.1% lower against the dollar (GBPUSD=X) on Monday, to trade at $1.3694, as investors weighed the latest UK economic data releases. The Office for National Statistics (ONS) confirmed a preliminary estimate that the UK economy expanded by 0.7% in the first three months of the year However, the household savings ratio, a measure of how much people save, fell for the first time in two years, to 10.9% from 12%, as people spent more on fuel, rent and restaurant meals. Danni Hewson, head of financial analysis at AJ Bell (AJB.L), said: "Confirmation that the UK economy delivered the fastest growth of any G7 country at the start of the year feels almost redundant. Read more: Trending tickers: Palantir, Boeing, UBS, WH Smith and Hikma Pharmaceuticals 'A mix of tariff woes and tax hikes have created a period of such uncertainty and instability that many businesses have simply pressed pause on their future plans, and in some cases taken the decision to cut labour costs in order to set them up for what might be down the tracks." "The early growth spurt looks set to be an anomaly rather than the sustained expansion the government needs if it's to pad treasury coffers without resorting to tax rises or further spending cuts," she added. In other currency moves, the pound was slightly lower against the euro (GBPEUR=X), trading at €1.1683 at the time of writing. Oil prices dipped on Monday morning, amid easing geopolitical risks, following sharp movements in the commodity last week. Brent crude (BZ=F) futures edged 0.1% lower to $66.74 per barrel, at the time of writing, while West Texas Intermediate futures (CL=F) fell 0.3% to $65.35 a barrel. Stocks: Create your watchlist and portfolio "With the Iran-Israel-US truce holding, geopolitical tensions have calmed and that's kept downwards pressure on oil prices," said Hargreaves Lansdown's Streeter. "Brent Crude has fallen 14% over the past week as the easing of supply disruption worries collided with expectations that OPEC+ nations would ramp up production. There is still expected to be fall out for global growth, due to the impact of US trade policies, so the expectation of lower demand for energy is also weighing on prices." More broadly, the FTSE 100 (^FTSE) fell 0.3% on Friday morning to 8,773 points. For more details, on broader market movements check our live coverage here. Read more: What to watch this week: UK shop prices, US employment, Constellation Brands, M&S and Sainsbury's Global economy to slow amid 'most severe trade war since 1930s', says Fitch UK economy grew 0.7% in first quarter of the yearError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-06-2025
- Business
- Yahoo
Pound highest since January 2022 against dollar as Trump eyes Fed chair successor
The pound climbed to its highest level against the dollar in more than three years on Thursday morning, buoyed by fresh speculation over the future leadership of the US Federal Reserve. Sterling rose 0.5% to $1.3725, its strongest level since January 2022, after a report in the Wall Street Journal indicated that Donald Trump is weighing an early announcement on who would replace Jerome Powell as Fed chair. The dollar weakened broadly on the news, with the US Dollar Index ( which tracks the greenback against a basket of six major currencies down 0.5% in morning trading. Trump has grown increasingly exasperated with Powell over the Fed's reluctance to cut interest rates. While Powell's term is not due to expire until May next year, an early announcement could shift attention to the monetary stance of his potential successor. Read more: The top-rated European defence stocks as countries vow to boost spending Announcing Powell's replacement early would put the focus on where the next Fed chief thought interest rates should be set. The pound has now gained 8.7% against the dollar so far this year, lifted by both a softer US currency and fading recession fears in the UK. In other currency moves, the pound was higher against the euro, up 0.2% to €1.1732 at the time of writing. Oil prices inched higher in early European trade, building on gains from the previous session as a sharper-than-expected drop in US crude inventories suggested resilient demand. However, traders remained cautious amid uncertainty over a fragile ceasefire between Iran and Israel. Brent crude rose 0.4% to $66.67 a barrel, while West Texas Intermediate gained 0.3% to $65.16 in early trading. 'Some buyers are favouring solid demand indicated by falling inventories in US weekly statistics,' said Yuki Takashima, an economist at Nomura Securities. 'But investors remain nervous, seeking clarity on the status of the Iran-Israel ceasefire,' he added, noting that attention was now shifting toward future Opec+ production decisions. Takashima said he expected WTI prices to stabilise within the $60–$65 range, returning to levels seen before the recent geopolitical flare-up. According to Reuters, analysts at ANZ said that with tensions between Iran and Israel easing, the market had refocused on underlying fundamentals. They pointed to data showing a fifth consecutive weekly decline in US crude inventories as evidence of firm demand. Gold prices rose modestly on Thursday morning, lifted by safe-haven buying as investors weighed rising political uncertainty in the US and a softening dollar. In early European trading, gold futures climbed 0.5% to $3,358.90 an ounce, while spot gold edged 0.5% higher to $3,346.52 per ounce. The gains came amid growing speculation that president Trump could move to replace Federal Reserve chair Jerome Powell as early as September or October, months ahead of the official end of Powell's term next May. Bullion has surged more than 25% since the start of 2025, driven by persistent central bank buying and expectations of looser monetary policy globally. But momentum has waned in recent months as markets await further macroeconomic direction. Stocks: Create your watchlist and portfolio 'Gold is just basically treading water for the moment until we get a read on the next batch of US macro data, including GDP and core PCE,' Tim Waterer, chief market Analyst at KCM Trade, said. Investors are eyeing the release of US GDP figures later on Thursday, with inflation data, including the Federal Reserve's preferred core personal consumption expenditures index, due on Friday. Despite this week's gains, gold remains around $160 below its all-time high, with traders cautious about chasing prices higher without a catalyst. In equities, the UK's FTSE 100 (^FTSE) was just above the flatline at the time of writing, trading at 8,722 points. For more details, follow our live blog coverage in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
