U.S. Economy

GBP came under significant pressure against the EUR and USD ahead of the weekend following the release of surprisingly strong U.S. Data.

The Pound to Dollar exchange rate's losses deepened ahead of the weekend after a surge in U.S. non-farm payrolls sent currencies like Sterling and the Euro tumbling while forcing investors to look again at assumptions about the outlook for Federal Reserve (Fed) interest rates.

The Pound to Dollar exchange rate remained buoyant around the 1.24 level on Thursday after official figures painted the world's largest economy into a picture of rude health that could have implications for financial market pricing of the Federal Reserve (Fed) interest rate outlook. 

The Dollar retreated against the Pound and other major currencies after data reaffirmed that U.S. inflation had peaked and was in the process of slowing, keeping alive expectations the Federal Reserve would soon end its interest rate hiking cycle.

The Dollar pared some of its recent advances after data showed U.S. wage growth was softer than expected in December, however, support was offered by a stronger-than-expected increase in jobs.

GBP/USD is under pressure amidst signs the Federal Reserve might have to raise interest rates to 5.4% amidst ongoing strength in the U.S. labour market.

The Federal Reserve will feel justified in slowing down the pace it raises interest rates after U.S. inflation roundly underwhelmed expectations in November.

The Pound to Dollar exchange rate made another attempt at recovering above 1.22 in midweek trade after official data suggested growth in U.S. employment costs moderated last quarter and that productivity picked up in labour market outcomes that would likely be welcomed by the Federal Reserve (Fed). 

The Pound to Dollar exchange rate rose to some of its highest levels for almost months when climbling back above 1.22 and approaching the 1.23 handle in a rally that built further following the release of Bureau of Economic Analysis data confirming that U.S. inflation pressures eased in October. 

U.S. retail sales were significantly higher than expected in October, but there are signs this spending is being funded by an increasing debt burden that offers flashbacks to behaviour that preceded the 2008-2009 recession.

GBP leapt 2.0% against the U.S. Dollar following the release of U.S. inflation data that was softer across the board.

USD a percent against GBP and 1.20% against EUR following the release of U.S. labour market data that, while still strong, confirmed a trend of slowing employment gains and wage growth.

Advice that the Fed should consider ending its rate hiking cycle "is badly misguided" says Larry Summers.

The 'pivot' in the Federal Reserve's hiking cycle, and the Dollar rally, remains as elusive as ever after data confirmed U.S. inflation continues to run hot.

The Dollar was sharply higher against the Euro and Pound Sterling following the release of U.S. labour market data that betrayed a healthy economy and invited the Federal Reserve to maintain a policy of aggressive interest rate hikes.

The Dollar rose sharply after data showed U.S. inflation is running hotter than markets were expecting, meaning the Federal Reserve will be emboldened in its desire to raise interest rates.

Stronger than expected labour market data released out of the U.S. on Friday will keep the Dollar.

"In one line: Startlingly terrible, but scarcely believable" - Pantheon Macroeconomics.

The U.S. economy added 528K jobs in July, a number that more than doubled the 250K jobs the market was expecting and aided a rebound in the U.S. Dollar.

A key measure of U.S. inflationary developments adds to evidence a peak in inflation is nearing, weighing on the Dollar at the start of August.