Invesco CurrencyShares British Pound Sterling Trust
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European equities eked out a modest gain on Thursday, with the pan-European Stoxx 600 reversing early losses to finish 0.12% higher as investors assessed a shifting global economic landscape, incoming corporate news, and rising expectations of US monetary easing. Germany's DAX led the region's major indices, advancing 0.22% to end the day at 23,777.
The Bank of England paused rate cuts at 4.25%, reflecting caution amid weakening UK growth and labor market data. Recent inflation data aligns with BoE forecasts, but risks remain two-sided.
The U.K. Labour Party won a landslide victory over the Tories, causing the British pound to rally against the U.S. dollar. The rising popularity of Reform U.K. shows increasing political divisions in the U.K., impacting the outcome of the election. U.S. election uncertainty contrasts with U.K. political stability, affecting currency markets and potentially favoring an upside recovery for the pound.
Recent unemployment data supporting a "soft economy" narrative, increases the market expectations of a rate cut starting in September. Look into areas to gain.
Driven by increased bets of interest rate cuts and a rising trend towards de-dollarization, the greenback is gradually losing its global dominance.
UK economy shows resilience, suggesting GDP stagnated over Q4 2021. Flash PMI data indicates increased output, but manufacturing sector continues to decline.
The greenback???s subdued future expectations, driven by different economic factors, increase the need to hedge and diversify one's portfolio.
We're expecting one final rate hike from the Bank of England this week with wage growth and inflation both proving stubborn. Recent comments show the Bank is laying the ground for a pause, and we aren't ruling that out on Thursday.
The GBP has outperformed this year, supported by rapidly rising policy rates. But the rate tailwind is now easing alongside the inflation/growth dynamic. With the market still pricing in a rather hawkish BoE, the risk/reward for the sterling is skewed in the wrong direction.
Marc Chandler and James Foord discuss international markets, economies and currencies. Has the Fed conquered inflation?
UK's Conservative Party is in the final stage of selecting a new leader, who will then be the next Prime Minister, following the resignation of Liz Truss after only 45 days on the job. The havoc in the bond market had a severe impact on Britain's pension funds.
BlackRock among issuers hit as Britian reverses tax plan.
With British pound volatility elevated at near historic levels, investors can sell a straddle on the Invesco Currency British Pound ETF. The post Best Of Britain: This Short Straddle Will Pay Off If British Pound Calms Down appeared first on Investor's Business Daily.
After a mini-budget revision was announced, including elimination of the 45% income tax bracket, many financiers who would directly benefit were alarmed, oddly so. The pound depreciated to under $1.04 (before recovering), and the 10-year Gilt rate increased by over 1% (before recovering).
The pound is in a free fall, while U.K. stocks are trading at their lowest valuations since the financial crisis.
Price action in UK gilts is going from bad to worse. A daunting list of challenges has arisen for sterling-denominated bond investors, and the Treasury's mini-budget has done little to shore up confidence.
The Bank of England recently hiked interest rates by 50 basis points, marking its biggest single rate increase since 1995.
As the global economy is burdened with inflationary threats, let's take a loot what currency ETFs won and what lost.
United Kingdom country-related exchange traded funds strengthened Thursday after Boris Johnson announced his resignation as British prime minister, ending the latest round of political uncertainty gripping the country.