Your browser is out of date

This website has been built for modern browsers, yours is many years out of date and as a result, your experience of this website will be poor.

Please upgrade your browser and pop back.


Market Reports

8:19am, June 20th 2019

Fed runs out of patience…

The greenback took a hit yesterday as the Federal Reserve opened the door to a near-term interest rate cut.

Wednesday turned out to be a positive day for the GBPUSD pair. The morning session saw UK inflation meet expectation, printing at the 2% mark which is the Bank of England’s target rate. The pound perked up following this release, pushing toward the top end of the $1.25 handle and edging higher against the rest of its peers.

In the afternoon we found out the next victim of the Conservative party leadership race. This time it was Rory Stewart’s turn to bow out, leaving Hunt, Gove, Javid and Johnson. Pressure now rests on Javid, with the least amount of votes, to throw the towel in and back one of the remaining 3. No doubt this would be either Gove or Hunt which would provide a significant boost to whomever he chooses. Rumours are that Rory Stewart has struck a deal with Gove which would see much of his support filter into his campaign. Following the 6pm result, sterling reached its highs of the day, trading >$1.26 and >€1.1250 against the US dollar and euro, respectively. Today we’ll see the final round of voting which will determine which 2 will move into the last phase.

The main event came yesterday evening with the Federal Open Market Committee decision. Interest rates remained unchanged but the central bank indicated that it is closely monitoring the economic situation and is ready to act should monetary easing be required. The Fed removed the word ‘patient’ from their statement, indicating an urgency in ensuring the economy is accommodated appropriately as the situation evolves. The Fed lowered its forecasts for inflation over the coming months and also used this as justification for the rate cuts which are coming. The market is now applying a 100% probability the Fed cut next month. It’s worth remembering that the central bank have always met the market’s expectation whenever pricing probabilities have been >50%. The greenback weakened during and after last night’s decision. It’s continued to decline across Asian trade as the baton is passed over to Europe this morning.

Today’s session is all about the pound. Two big events await the currency. This morning sees the May retail sales report while lunchtime hosts a Bank of England monetary policy announcement. Fasten your seat-belts, it could be another volatile day!

Written by Viv Savani. 8:19am, June 20th 2019

The details expressed in this market report are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Cornhill International Payments limited accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information.

Previous Reports

8:50am, September 23rd 2019

Brexit back in focus as Supreme Court decision expected this week…

View Report
8:41am, September 19th 2019

Fed cut rates, greenback strengthens as stocks fall…

View Report
8:39am, September 30th 2019

Another busy week ahead…

View Report


Our Clients Say

"I have had an association with Cornhill for over a decade and have had the pleasure of working with the same broker for the entire period of time, which is currently just over 15 years. This shows not only my dedication and customer loyalty to the company, but also their commitment and successful staff retention. The level of service I have received has never waned or altered and has been consistent over the term. Keep up the good work Cornhill. Dominic you are a legend."

Helen - FD, Essex Boatyard

"When deciding to buy a property in France, my husband and I failed to consider the implications of the currency exchange and to be honest, it was extremely daunting to know that the cost of the property could have increased significantly potentially wiping out any renovations we had planned had we sat on our hands and left it to chance. Thankfully, Dominic (our account manager) and the rest of the Cornhill team couldn’t have been more helpful, and as such helped us to understand our options and secure a price that puts our bank to shame. Always courteous and friendly, we don’t know what we would have done without them now!"

Samantha Johnson - Private Client

"I work to very tight margins in my business and as such currency volatility has a major impact on how well my business performs. After dealing with my bank for many years, I took the step of opening an account with Cornhill after meeting one of their team at an industry event. James took the time to explain the services and quickly highlighted what I was missing from my bank – proactivity and competitive pricing. It’s almost impossible to get through to someone at my bank without jumping through many hoops. Cornhill are always in touch at the right time, which helps me to time my currency purchases and make the most of moves in my favour. I now rest easy knowing I have a team of people working FOR my business and adding true value to it both in pricing terms and proactivity terms. My profits have increased and I know I am in good hands!"

Martin Fisher – FD of a Packaging Business

"My products are made abroad by trusted suppliers who I have worked with for many years. After a number of issues with my previous currency provider (payments being delayed), I decided to look at who else could help with my payments. Fortunately, I was introduced to Cornhill by a former colleague who uses their services. Since then, I haven’t looked back. Customer service is often overlooked in this ever-increasing digital age, but to know I have someone to call at the end of the phone who will listen to my query and take ownership of it for me is a breath of fresh air. Vivek and Greg have been reassuring and whenever I have a question for them, they are quick to respond and resolve."

Alexandra Houghton – Founder of a clothing business