The English pound pushed to its top level in about four years against the world's reserve currency on Monday amid confidence the regional economy is continuing to grow stronger, according to Bloomberg.
The U.K. is prepared to release economic data about gross domestic product on Tuesday and economists said the data will climb at the most rapid pace since 2010. Bonds issued by the U.K. dropped after data noted prices of homes were on the rise.
"GDP figures are out tomorrow and with good news people have decided to test recent highs" regarding the pound, head of Group-of-10 foreign-exchange strategy Stuart Bennett with Banco Santander SA in London told the news source on Monday. "The market is still quite long sterling, it's a crowded trade at the moment and it's going to take a lot to jump higher."
The pound climbed 0.2 percent against the U.S. dollar, marking its biggest rise since the middle of the month.
Financial News reports the Bank of England is issuing warnings about asset management growing so big that it is presenting a risk in the industry.
Risk Disclosure
The StoneX Group Inc. group of companies provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange-traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicable law in the jurisdictions where services are provided. References to over-the-counter (“OTC”) products or swaps are made on behalf of StoneX Markets LLC (“SXM”), a member of the National Futures Association (“NFA”) and provisionally registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of SXM. StoneX Financial Inc. (“SFI”) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI does business as Daniels Trading/Top Third/Futures Online. SFI is registered with the U.S. Securities and Exchange Commission (“SEC”) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Adviser. References to securities trading are made on behalf of the BD Division of SFI and are intended only for an audience of institutional clients as defined by FINRA Rule 4512(c). References to exchange-traded futures and options are made on behalf of the FCM Division of SFI.
Trading swaps and over-the-counter derivatives, exchange-traded derivatives and options and securities involves substantial risk and is not suitable for all investors. The information herein is not a recommendation to trade nor investment research or an offer to buy or sell any derivative or security. It does not take into account your particular investment objectives, financial situation or needs and does not create a binding obligation on any of the StoneX group of companies to enter into any transaction with you. You are advised to perform an independent investigation of any transaction to determine whether any transaction is suitable for you. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc.
© 2021 StoneX Group Inc. All Rights Reserved
