“,”elementId”:”d35175ff-0e8d-4a41-a4ff-57ac56b1174e”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
The pound is hovering near a one-year high following yesterday’s stronger-than-expected GDP data, which showed the UK economy returned to growth in May with a 0.4% expansion. At the same time, US inflation came in lower than expected, falling to an annual rate of 3% in June from 3.3% in May, fuelling hopes of a September interest rate cut and driving the dollar lower.
“,”elementId”:”f7b4905b-ebdb-4512-81bf-034c1b167421″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Sterling hit a peak of $1.2947 yesterday, the highest level since late July 2023, and is approaching the $1.30 mark. This morning, it is up by a smidgen to $1.2911.
“,”elementId”:”adaad63f-a55e-4f1a-80b7-872ffa4768de”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said:
“,”elementId”:”8aa35e48-c4ea-4943-95cc-c2b1301c0cbe”},{“_type”:”model.dotcomrendering.pageElements.BlockquoteBlockElement”,”html”:”
\n
In the UK, the pound was already bid yesterday morning after stronger-than-expected growth data helped traders scale back the expectation of an August cut from 70% to a coin toss. Combined with rising hawkish voices at the Bank of England, waning political risks and softening US dollar, we could see cable make an attempt on the $1.30 level. But the fact that the BoE hawks cry louder doesn’t mean that the doves are not around…
\n
“,”elementId”:”e5b8ebc1-e731-414c-9500-9dd1c6f632f0″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Japan’s SoftBank has bought the British artificial intelligence chipmaker Graphcore for an undisclosed sum, ending long-running speculation over the company’s future.
“,”elementId”:”2f41b4c4-4642-48f7-868a-fa6fa4ab8c32″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Once touted as a rival to US chipmaker Nvidia, which has seen its own valuation rocket thanks to booming demand for AI computer chips, Graphcore has struggled to secure the investment needed to compete.
“,”elementId”:”9ac9c143-1570-4569-80bc-08213cbaf72a”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
Graphcore was valued at $2.77bn at the end of 2020, but the company’s losses widened and it said last October that it needed more cash. It slashed its workforce by a fifth to 494 staff, and shut down operations in Norway, Japan, and South Korea.
“,”elementId”:”cbbad94e-1831-49eb-b72c-91ea302df401″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
The Agenda
“,”elementId”:”3e631b79-425a-4694-afda-1510d03b3b24″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”
- \n
-
1.30pm BST: US producer prices for June
-
3pm BST: US Michigan consumer sentiment for July (forecast: 68.5)
\n
\n
“,”elementId”:”5335227b-3bf3-4776-b759-3ac43b127260″}],”attributes”:{“pinned”:false,”keyEvent”:true,”summary”:false},”blockCreatedOn”:1720765988000,”blockCreatedOnDisplay”:”02.33 EDT”,”blockLastUpdated”:1720766318000,”blockLastUpdatedDisplay”:”02.38 EDT”,”blockFirstPublished”:1720765988000,”blockFirstPublishedDisplay”:”02.33 EDT”,”blockFirstPublishedDisplayNoTimezone”:”02.33″,”title”:”Introduction: Pound hovering near one-year high; Japan’s SoftBank buys British chipmaker Graphcore”,”contributors”:[],”primaryDateLine”:”Friday, July 12, 2024 02:50 EDT”,”secondaryDateLine”:”First Published Friday, July 12, 2024 02:33 EDT”}],”filterKeyEvents”:false,”id”:”key-events-carousel-mobile”,”absoluteServerTimes”:false}”>
Important Events
Daniella Sabin HathornSenior Market Analyst at an Investment Firm Capital.comSaid:
The British pound has maintained a bullish trend since the start of the preparations for the UK elections. The fact that the elections seemed easy and straightforward has given investors confidence in British assets, especially at a time of considerable political uncertainty around the world. This is not to say that the new Labour government will not face challenges ahead, but for now, the political situation seems much calmer than in France.
GBP/USD is also benefiting from the weaker US Dollar, with the pair posting gains on a daily basis.
Introduction: Sterling hovering near one-year high as Japan’s SoftBank acquires British chipmaker Graphcore
Good morning and welcome to our continuing coverage of business, financial markets and the global economy.
The pound is hovering near a one-year high after better-than-expected GDP data was released yesterday, showing the UK economy returning to growth, expanding by 0.4% in May. Meanwhile, US inflation came in weaker than expected, falling to an annualised 3% in June from 3.3% in May, raising hopes of an interest rate cut in September and sending the dollar lower.
The pound hit $1.2947 yesterday, its highest since late July 2023, and is approaching $1.30. It is up slightly this morning, at $1.2911.
Ipek Ozkardeskayasenior analyst Swissquote BankSaid:
In the UK, the pound has been buying since yesterday morning after better-than-expected economic growth data led traders to lower their August interest rate cut expectations from 70% to a coin toss. Increasingly hawkish rhetoric from the Bank of England, combined with reduced political risk and a weaker US dollar, may see the pound head towards the $1.30 level. But just because the Bank of England is more hawkish doesn’t mean there aren’t any doves…
Japanese SoftBank Acquires British artificial intelligence chipmaker Graphcore The deal, for an undisclosed sum, ends years of speculation about the company’s future.
Once touted as a rival to Nvidia, the U.S. semiconductor maker whose valuation has soared on surging demand for computer chips for AI, Graphcore has struggled to secure the investment needed to compete.
Graphcore was valued at $2.77 billion at the end of 2020, but the company’s losses have widened. The company said in October last year that it needed more funding.The company cut its workforce by a fifth to 494 and shut down operations in Norway, Japan and South Korea.
agenda
