Highlights of the latest Marker Research release on GBP.
Full research available here.
The British pound could be named the star of the period as its index performed a beautiful act of last-minute recovery, jumping from the second worst to the second best in a span of eight hours. After spending the past week and a half trudging below the base level, the GBP index posted a gain that was surpassed only by the advancement of the period’s leader, the Swedish krona. The pound faced the end of the period neck and neck with the U.S. dollar, outrunning it only by 0.01%. The currency’s gains over other peers were much more substantial, reaching as high as 0.76% and 0.85% against the Kiwi and the Loonie. In the long-term view, the pound remains firm in its leading position with +3.1% half-yearly and +10.67% yearly changes.
Throughout the period the pound’s currency pairs were averagely turbulent compared to their GBP-lacking counterparts, but convincingly outperformed them in the scope of volatility peaks. July 15 inflation data and the generated surge of the pound pushed the volatility indexes to record highs, with the EUR/GBP index peaking at the period’s absolute maximum of 6.1, and the GBP/USD reaching the third biggest value of 4.4. Beyond the peaks, the volatility of the pound’s crosses was neither enhanced nor subdued relative to other currency pairs, with the average value perfectly in line with the market.
The average values of the correlation coefficients between GBP/EUR and the rest of pound’s crosses varied between 0.35 and 0.91 over the past 5 and 20 days, 0.05-0.1 points higher than longer-term values, indicating solid positive relation . There was only one occurrence of negative correlations throughout the period. Australian unemployment rate release furthered the weakening of the Aussie and, consequently, shifted the bond between GBP/EUR – GBP/AUD and GBP/USD – GBP/AUD to the negative side. As for the overall significance measure of the pound, it held on a relatively high level during the period, ranging from 0.3 to 0.75. The week, however, was not short of some ups-and-downs.
Full research available here.
The British pound could be named the star of the period as its index performed a beautiful act of last-minute recovery, jumping from the second worst to the second best in a span of eight hours. After spending the past week and a half trudging below the base level, the GBP index posted a gain that was surpassed only by the advancement of the period’s leader, the Swedish krona. The pound faced the end of the period neck and neck with the U.S. dollar, outrunning it only by 0.01%. The currency’s gains over other peers were much more substantial, reaching as high as 0.76% and 0.85% against the Kiwi and the Loonie. In the long-term view, the pound remains firm in its leading position with +3.1% half-yearly and +10.67% yearly changes.
Throughout the period the pound’s currency pairs were averagely turbulent compared to their GBP-lacking counterparts, but convincingly outperformed them in the scope of volatility peaks. July 15 inflation data and the generated surge of the pound pushed the volatility indexes to record highs, with the EUR/GBP index peaking at the period’s absolute maximum of 6.1, and the GBP/USD reaching the third biggest value of 4.4. Beyond the peaks, the volatility of the pound’s crosses was neither enhanced nor subdued relative to other currency pairs, with the average value perfectly in line with the market.
The average values of the correlation coefficients between GBP/EUR and the rest of pound’s crosses varied between 0.35 and 0.91 over the past 5 and 20 days, 0.05-0.1 points higher than longer-term values, indicating solid positive relation . There was only one occurrence of negative correlations throughout the period. Australian unemployment rate release furthered the weakening of the Aussie and, consequently, shifted the bond between GBP/EUR – GBP/AUD and GBP/USD – GBP/AUD to the negative side. As for the overall significance measure of the pound, it held on a relatively high level during the period, ranging from 0.3 to 0.75. The week, however, was not short of some ups-and-downs.