
EUR/GBP at 0.8725 Whispers What Equity Indices Are Screaming
Sterling outpaced the euro on the downside Friday, but the cross barely moved. Read the bond market, not the headlines.

European Bureau
ECB Policy, Bank of England, European Fixed Income, EUR/GBP FX, European Banking
EUR/GBP at 0.8725 Whispers What Equity Indices Are Screaming
Listen to Marcus Brandt's latest column.
Ran a fixed income desk at Deutsche Bank for 15 years before a rate call that made him famous and the bank nervous sent him into journalism. Has a gift for finding the single data point buried in an ECB statement that everyone else skimmed.
6 articles · ~13 min total reading

Sterling outpaced the euro on the downside Friday, but the cross barely moved. Read the bond market, not the headlines.

A 0.22% move in cable's cousin tells you more about ECB-BoE divergence than a 1% wobble in the FTSE ever will.

Sterling firmer, euro drifting, and an ECB officialdom suddenly very interested in 'integration' and 'energy shocks'. Read the rotation.

Sterling holds 1.3585 against the dollar while the cross drifts lower. The boring tape is the story.

GBP/USD up 0.57% versus EUR/USD's 0.48%. A nine-basis-point cross move tells you more about Threadneedle Street than any speech this week.

April bank lending survey confirms what bond spreads have whispered for weeks — European credit conditions are deteriorating faster than policymakers acknowledge.